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Will I still have to pay Council Tax arrears if Bankrupt?

Council Tax may generally be included in a bankruptcy, but there might be complications if a Liability Order has already been issued and an arrangement with Bailiffs has been made e.g. £150 x 6 payments. Under these circumstances, you might be obliged to complete the arrangement despite having gone bankrupt and the Official Receiver might not intervene.

It is therefore very important that you make an arrangement with your Council before they issue a Liability Order. A Liability Order is the seventh and final stage a Council will take to recover outstanding council tax. You would have had plenty of notice that trouble is coming and it can be avoided by simply offering a low, affordable amount.

Bankruptcy UK specialises in taking people through the bankruptcy process in a straightforward manner. We will assess your circumstances then submit the bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for a chat about your circumstances on 01425 600129.

Will the Official Receiver tell my job I’m bankrupt?

Not directly, but if you went bankrupt earlier in the year (February / March) your company would almost certainly not be aware of it. The reason for this is that your tax code would not change to NT as is usually the case in bankruptcy, as there would be no time to set up the processes.

If you went bankrupt after April 6th, the Insolvency Service would advise HMRC to instruct the company you work for to change your tax code to ‘NT’ or no tax (without providing a reason as to why). The tax you would have paid is redirected to a different source and used to offset administration costs and to distribute among the creditors. This arrangement ceases at the end of the tax year and your tax code reverts to whatever it was.

Bankruptcy UK specialises in taking people through the bankruptcy process in a straightforward manner. We will assess your circumstances then submit the bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for an informal chat on 01425 600129.

Bankrupt but still being harassed

If the trustee has the keys to my house, why is the secured loan company still harassing me and taking me to court to repossess my house?

This doesn’t sound right, because the Trustee would have had an obligation to advise the secured loan company of your status and his interest in the property. We have to assume that this has not happened and you need to make the Trustee aware of this development.

For those of you who don’t know, in cases where there is a property (with equity) involved in a bankruptcy, a Trustee is appointed in place of the Official Receiver. This would be a private Insolvency Practitioner and is often a firm of accountants or solicitors. It seems someone has taken their eye of the ball, as this sort of thing rarely happens.

Bankruptcy UK offers bankruptcy help for those who might be unfamiliar with the procedures and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for an informal chat about your circumstances.

 

Bankruptcy procedures have changed as of 6th April 2016

As from 6th April 2016 the courts are no longer processing bankruptcy applications and the new-style 8-part application is now submitted to the Insolvency Service online.

In what appears to be a concerted bid to streamline the process, people are no longer required to attend court and simply tick a box declaring that what has been submitted is accurate. The reduced court fee of £680 applies to everybody as fee remissions are done away with. It used to be the case that those on limited income or benefits could apply to have the court fee waivered, but this no longer applies.

Once submitted, the case is assessed by an Adjudicator who decides whether to proceed or not. Should it proceed, the bankrupt will be advised and the case is passed on to the local Official Receiver’s office, who processes the case as previously.

To some people, especially younger folks who have been weaned in an online society, this might almost sound like great fun but a word of warning: the forms are still formidable and have to be completed accurately or they will be rejected. Moreover, no allowances have been made for those who do not have home PCs, people with learning disabilities or older folks who know little about modern technology.

At Bankruptcy UK we have set up procedures to deal with all of these issues and will do everything for the client, from completing a fact find and preparing documents for sign off, to submitting everything online. In other words, we’ll make the process seamless while you go bankrupt from the comfort of your armchair.

Bankruptcy UK will help you throughout the process and submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.

Divorced, pub debts and now bankrupt ..

If you have a Pub and go bankrupt are your debts paid off even if you got paid out in a divorce settlement i.e. would i have to pay the creditors from my settlement? I’m anxious to avoid losing the settlement to the Official Receiver.

There are a number of issues here. Are you a Director or Self Employed? Are they the pub’s debts or your personal debts? Do you have a lease in your personal name or, if not, have you signed any personal guarantees with the pub chain? We can’t really give a definitive answer until we know more, but if you are personally liable then the divorce settlement is under threat. We have had a spate of similar enquiries recently and in all but one of these, Personal Guarantees had been signed and the individuals were personally liable. If you have somehow avoided this and are a Director rather than Self Employed then you might have dodged a bullet, but we need to know more.

Feel free to call us on 01425 600129 with any other questions or for bankruptcy help. Questions may also be posted on our Home Page. Please note, court appearances are no longer required for bankruptcy as everything is processed online.

Could I be discharged early from Bankruptcy?

People are usually discharged from bankruptcy after 12 months, but we have known people to be discharged after just four months and many more after 6 – 7 months. Early discharge is entirely at the discretion of the Official Receiver, but this usually takes place when a person’s circumstances are unlikely to change e.g. someone who is on pension, long term unemployed or receiving disability.

Bankruptcy UK offers bankruptcy help across the board and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.

Life Insurance and Bankruptcy

Life Insurance and bankruptcy are often overlooked. People are allowed to keep their life insurance policies in place, subject to ‘buying the Official Receiver’s interest’ in them for a token amount, usually £50. Appearing below is an extract from the Insolvency Services’ Technical Manual for the purists among you:

What action can the official receiver take if the policy has no value?

”The official receiver should inform the bankrupt of the consequences of continuing to pay premiums into a policy which vests in the trustee (form LTBPOL). Where the policy does not have a surrender value, the official receiver should consider allowing the debtor to purchase the trustee’s interest in the policy. The Insolvency Service has adopted a standard fee of £50 to cover the administrative costs of any assignment of the policy. The standard letter (form LTBPOL) should be sent to the bankrupt which outlines the possible action he/she may take in respect of such a policy. If the policy is kept in force by the bankrupt (for example, by continuation of payment of premiums) and the bankrupt does not effect an assignment, then any payment due from the policy will be an asset in the bankruptcy estate. The standard letter advises the bankrupt of this circumstance”

Can I still claim PPI if I go bankrupt?

No you can’t, as PPI taken on loans prior to the bankruptcy is classified as a ‘Bankruptcy Asset’ and forms part of the Bankruptcy Estate. The bank in question would therefore be obliged to make out any refund cheques to ‘The Trustee of xxxxxx’ and the recipient would forward the cheque to the Official Receiver or Trustee. Having said that, we know of only one bank that actually makes out cheques in this manner – Barclays – and the rest of them merrily make out cheques to the individuals concerned. Unless the individual surrenders the payment, the OR (and the bank) will be blissfully unaware of what has transpired and we know of plenty of people who have claimed this way. Not that we approve of it, mind you.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us on 01425 600129 for a chat about your circumstances.

Can I put a Liability Order into my bankruptcy?

Yes you can, but first we need to clarify exactly what a Liability Order is. This is the 7th and final stage that a council takes to recover Council Tax arrears and it is signed off by a Judge. Once this happens, court bailiffs will move to recover the arrears and if you thought normal bailiffs were bad, these are much worse. The likely outcome of their harrassment is an arrangement whereby the tenant pays so much per month to make up the shortfall. If you go bankrupt, the bailiffs may continue to collect the payments unless the Official Receiver intervenes. The best call when it comes to Council Tax arrears is to always make an arrangement before it gets to the final stage.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

Who exactly is the Official Receiver?

When we refer to the ‘Official Receiver’ we are colloquially referring to the Insolvency Service, for whom he/she is an officer. The OR is answerable to the courts for carrying out the courts’ orders, but also acts on directions, instructions and guidance from the Service’s Inspector General or, less often, from the Secretary of State. The OR has three main responsibilities a) acting as an interim receiver or provisional liquidator b) acting as receiver, trustee or liquidator – the OR becomes receiver and manager when a court makes a bankruptcy order against an individual and c) acting as supervisor: in a fast-track voluntary arrangement proposed by a bankrupt.

In an everyday sense, the OR is the person who processes all the paperwork and investigates the circumstances surrounding a bankruptcy. The OR often gets bad press as the perceived ‘bad guy’ in bankruptcy cases, but there is little to fear if you play it straight. Our experience of the OR / Insolvency Service is generally positive, but woe betide anyone who tries to pull one over on him/her (hiding assets, not declaring bank accounts, etc). Not a good idea.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

 

 

Bankruptcy UK

Bankruptcy UK