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Bankruptcy fees reduced from 6th April 2016

The Insolvency Service has announced that bankruptcy fees will be reduced from the current £705 to £680 from 6th April 2016 as it rolls in its new online service. The bad news is that this applies across the board and there will no longer be ‘Court Fee Remissions’ for those on lower incomes, pension or benefits.

The fee comprises two elements i.e. the Adjudicator’s Fee of £130 (which replaces the old Court Fee) and the Bankruptcy Deposit of £550, which is really the Official Receiver’s Administration Fee. Good news is that people no longer have to attend court for bankruptcy hearings.

Feel free to call us on 01425 600129 for a chat about your circumstances or for bankruptcy help.

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.

Should I use my pension to pay off my debts?

With the change in the pension rules, suddenly those over the age of 55 will be eligible to draw down larger sums e.g. £20,000 which could be used to settle debts. Those with long standing debts might view this as a salvation, but what are the side effects of drawing everything down and what else needs to be taken into account?

* The first thing that needs to be considered is the debt itself. How old is it and is it still enforceable? Any debt over six years old might be ‘Statute Barred’ under the Limitations Act 1980 – covered elsewhere on this website – and this needs to be investigated, perhaps by a visit to your local CAB.

* You will have to pay tax on the money you take out of your pension as though it is extra income and this might push you into a higher tax rate – again, this needs to be investigated. Although the first 25% is tax free, you will still be ‘burning away’ a good chunk of your pension in tax and we query the wisdom of doing this.

* You might be exchanging a short term problem for long term deprivation – some people are retired for three decades or more before passing away and loss of income could have a terrible effect in years to come.

* Taking a lump sum might affect your eligibility to certain benefits, especially Housing Benefit under something called ‘Deprivation of Capital’ – we recommend you investigate this thoroughly, as again, it could affect you for many years to come.

Suffice it to say, it is worth taking visiting your local CAB and taking advice before rushing headlong into something that might affect you for the rest of your life.

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.

Will I lose my pension if I go bankrupt?

No, HMRC approved pensions are ring posted in bankruptcy and cannot be touched by the Official Receiver, though we understand this is not the case in other parts of the EU including the Republic of Ireland and Germany. State pensions are similarly unaffected. 

Call us on 01425 600129 or 07479 739139 / 07894 481175 with any further bankruptcy questions or for bankruptcy help. Our advisers are not scripted and will gladly explain everything in easy to understand terms.

How will my ex going bankrupt affect me?

My ex wife is now bankrupt after a business failure. She was made bankrupt by her ex-employer, a brewery, and the officials have asked for our divorce agreement. We divorced nearly 4 years ago and I gave her a share of my house, a share of my pension plus £800 a month. Am I at risk ? Will my settlement be revisited to help pay creditors?

Taking it from the top: The pension will not be affected, but the £800 per month will form part of her income when the court assesses whether or not she has to contribute on a monthly basis in an Income Payments Agreement (IPA) over the next three years. An IPA comes into force when it is determined that the individual has surplus income after all expenses. This is the single most important aspect of the bankruptcy procedure, as a bodged Income and Expenditure will cost the person dearly.

Regarding the house, this could be an issue if there is equity in the property. The Official Receiver will investigate her interest in the property and its value, as it is the OR’s role to liquidate assets and distribute the funds to the creditors. If the property has no equity, this will not be a problem. Having said that, if the conditions surrounding the house were specified in the divorce agreement, it is unlikely the Official Receiver will intervene.

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.

Expert Business Consultant Available To Speak to Today

Great News! Our business turn around and recovery division is stronger than ever with the client service that we can offer directors looking to establish a clear route through difficult decisions that may need to be made.

These difficult times hit us at times where we could really do without it.  We are able to offer a telephone consultancy or face to face visit at short notice for directors who need to make urgent decisions about their business options. We have experience of dealing with business recovery issues at all levels, including PLCs.

Ordinarily company directors stick with the accountants and solicitors who were appointed when the business was solvent and ‘doing well’, but these professionals are not always appropriate when it comes to business survival.

If you have a business that is about to hit the rocks, then call us and let’s see if we can change the outcome.

You can call our 24 hr helpline 0800 597 7977 or speak to Sean direct on 07812 917002

joint leaseholders and bankruptcy – will we lose the lease?

We are joint leaseholders on a pub but only I’m going bankrupt – will we lose the lease?

The best advice is to check the lease agreement for bankruptcy clauses. The lease is not the only issue here, as if there are assets such as stock, furnishings, etc involved, these would become part of the bankrupt person’s estate and it might not be possible to continue anyway. But usually this would require the non-bankrupt partner discussing a new arrangement with the pub chain with a view to continuing solo.

Bankruptcy UK offers a full bankruptcy administration service, including dealing with creditors, completing the all important Income and Expenditure, professional completion of the relevant paperwork, etc. Feel free to call us for a chat about your circumstances on 0800 5977 977 or 01425 600129.

Irish debt and bankruptcy – can I go bankrupt in England?

Many people from the ROI are considering moving to the UK mainland for this reason, as the insolvency laws are so much more lenient in England and Wales. There are, however, some points to consider and something called ‘Centre of Main Interests’ or ‘COMI’ is all important. The Insolvency Service is acutely aware of the phenomenon of ‘bankruptcy tourism’ and there are some tough criteria to satisfy if you wish to proceed.

Typically, you would need to set up local bank accounts and utility / council tax facilities, register for tax, national insurance, have a tenancy agreement in place, place yourself on the electoral roll and so on. In other words, it has to appear that you are here to stay. You may apply for bankruptcy once you have been in England or Wales for three months. This is something of a speciality for us and our track record is solid.

Bankruptcy UK offers assistance at all levels and will also prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us for bankruptcy help on 01425 600129 for a chat about your circumstances.

 

Will a bankruptcy in the UK be valid in Norway?

If you were to declare bankruptcy in England or Wales with Norwegian debt, it will not be recognised in that country as there are no cross border agreements in place. Provided you remained in England or Wales after the bankruptcy, your Norwegian creditors would not be able to pursue you. However, if you were to return to Norway, they might choose to recover the debt as it still exists in their eyes.

Bankruptcy UK offers assistance at all levels and will also prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us for bankruptcy help on 01425 600129 for a chat about your circumstances.

Can I be a sole trader when bankrupt?

Is it possible to set up a business e.g. cafe as a sole trader while you are bankrupt or can you set that up before you apply for bankruptcy? and will you have to pay your creditors anything out of the income of the business?

Yes you can. Many folks continue as self employed during bankruptcy, but you cannot be the Director of a limited company. It would not be wise to set up the café prior to bankruptcy as assets might be seized and any lease agreement terminated. This would be avoided if you set up the cafe after bankruptcy, though you need to remember that you are not allowed to have more than £500 credit during the term of the bankruptcy. This means that someone else might have to fund the project.

Bankruptcy UK offers assistance at all levels and will also prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us for bankruptcy help on 01425 600129 for a chat about your circumstances.

 

 

Bankruptcy UK

Bankruptcy UK