FORMAL INSOLVENCY ADVICE
Bankruptcy, The dreaded ‘B word’. At Bell & Company, we specialise in helping people move on from their debt burden in the way that is best for them.
Personal Bankruptcy has so many negative connotations associated with it. Bell & Company feel, however, since 2008 the stigma associated with the process has gradually lessened. Bankruptcy can have benefits and it is an excellent tool when armed with the best advice. Sometimes, if a person is saddled with excessive, unaffordable unsecured debt then Personal Bankruptcy can be the best route forward.
We work under the mantra of offering Professional Independent Insolvency Advice and many borrowers will be surprised how Bankruptcy can resolve debt issues. Our team supports clients every step of the way through Bankruptcy to reduce the stress, given this is an extremely emotional process.
You can be declared Bankrupt by actions of your lender. It is a lengthy process for the Creditor and does involve cost but nonetheless many will pursue this route to non- responsive debtors. Throughout the process a Creditor must take action to declare the debtor Bankrupt, the debtor will be given every chance to respond. Amicably liaising with a lender can vastly reduce the chance of you being made Bankrupt and also bring about a positive outcome for all parties involved should this be the best option for you.
Should a Creditor’s Petition be followed through you could find yourself in increased financial difficulty. You may be called for a meeting by the Official Receiver to discuss your finances and they may decide to implement an Income protection order. If this is put in place funds could be taken directly from your monthly salary and distributed to the relevant Creditors. If made Bankrupt your assets could be in significant danger for example, if you have equity in home this asset is in severe risk. Other matters to consider include vehicles, pensions, life insurance policies, jewellery etc.
HOW CAN BELL & COMPANY HELP?
Bankruptcy can be complicated if you are not aware of the process. Bankruptcy is feared by many and has negative connotations associated with it. Effectively, we advise, assist and hold the client’s hand throughout this process.
We also deal with Post Insolvency Services such as:
- Creditor’s petition for Bankruptcy – We assist clients with advice and guidance on the best way forward if going through this. If made bankrupt the Official Reciever will require a meeting to discuss a Bankrupt’s affairs. We provide significant work on this
- Debtor’s petition for bankruptcy – We assist clients with advice and guidance on best way forward if going through this
- Income Payment order advice – If a client has surplus income an Income Protection Order shall be applicable in Bankruptcy- we can advise clients through this
- Trustee negotiations – If the Official Reciever sees assets with equity during bankruptcy a trustee will be appointed to deal with same. Negotiations are involved to agree to a one-off offer to buy out trustees interest/share of the equity.
IMPLICATIONS OF BANKRUPTCY
• Your credit rating will be affected
• As a sole trader you cannot trade under any other guise
• All assets including business assets are at risk
• If any assets were sold in the last 2/5 years you must account for these.
• You cannot be the Director of a Limited Company or be involved in the Management of the Limited Company for the one year of Bankruptcy.
• Any Shares held in a Limited Company are at risk
• You cannot have a car of material value
• If you have significant earnings during Bankruptcy, an Income Payment Order may apply.
• If you receive a lump sum or an asset of value during Bankruptcy then the Official Receiver will have an interest in same.
• You may be put on a Nil Tax Code.
• The Official Receiver has 3 years to decide whether to disclaim his interest in your home
• If there are any assets in your estate with equity then the Official Receiver may sell these assets.
• If you are the joint owner of any assets with equity, including home, then the Official Receiver or trustee will recover it
• Your current Bank accounts will be frozen.
• Any transactions or property transfers in the last five years that may be for natural love and affection or sold at an undervalue may be overturned.
• Any preferential payments to Creditors in the last two years may also be overturned.
• You will be Bankrupt for one year if you comply fully with the Official Receiver.
• If you do not comply fully with the Official Receiver, it is likely that the Official Receiver will not automatically release you from Bankruptcy after one year and seek to extend the Bankruptcy
BANKRUPTCY-BEST CASE SCENARIO
Providing the Client’s circumstances align, Personal Bankruptcy can “clear the decks” allowing the individual the opportunity to start again. We regularly assist individuals going through Personal Bankruptcy and help to alleviate the pressures involved.
Dependant on your personal situation, Bankruptcy may not have a serious effect on your day to day life for example, if your home is in negative equity there may be a high possibility that you can retain this in Bankruptcy if mortgage payments are maintained. Furthermore, an income payment order may not be applicable if there is a deficit each month. There is also a possibility that you will retain your vehicle, life insurance and pension.
Regardless of best or worst case scenario, Bell & Company can assist in providing the appropriate advice tailored to the debtor’s personal circumstances with a view to establishing your best case scenario.
Contact the team here or call 02895 217 373 to discuss your circumstances and take the first steps towards your fresh start in life.