Author Topic: Little known facts about bankruptcy  (Read 5785 times)

bankruptcy.co.uk

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Little known facts about bankruptcy
« on: Aug 16, 2009, 01:07:47 AM »
1) You can keep your home if it is in negative equity. (This is at the discretion of the official receiver but my company has not known a single case where you cannot buy back your property for as little as £1) It is simply due to the fact that he/she has no interest in selling it as it would generate no revenue.
2) You can keep your car if you use it for work, need it for travel as you live in a rural area and the value of the car is less than £1500.
3) No one will enter your home and remove your belongings. (The chances of this happening are minimal and it would only occur if the official receiver believed you were hiding something!)
4) The chances are your name will not even appear in the local paper. (This is happening less and less due to the sheer number of bankruptcies occuring monthly). No guarantees can be made however as it is at the discretion of the official receiver.
5) Bankruptcy is no longer a punitive measure and as such there is even chance that you will not have to appear in court.

Raphael Gilbert
Head of Insolvency Divison www.ban

cloverfan09

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Re: Little known facts about bankruptcy
« Reply #1 on: Aug 28, 2009, 01:23:11 PM »
what are the chances do you think of not having to appear in court? i would b really scared....

marcus

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Re: Little known facts about bankruptcy
« Reply #2 on: Sep 04, 2009, 03:43:03 PM »
Interesting points, I didn't  know that about negative equity or about the name not appearing in the paper due to high volume. Were bailifss at one point coming into homes when people filed bankruptcy? I never heard that, you sure?

bankruptcy.co.uk

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Re: Little known facts about bankruptcy
« Reply #3 on: Oct 05, 2009, 11:52:16 AM »
In answer to cloverfan..... 90% of the time you have to appear in court. However!! It is not Judge Judy! It is a conveyorbelt system. One person goes insolvent every 3.5 minutes. They are not there to lecture you. They are there to complete a revenue generating process ( namely the court fee).

Marcus, i would like to iterate section 283(2) of the Insolvency Act 1986 - Exempt Property - Exempt Property is defined in this section and does not form part of the bankrupt's estate. It includes 'such tools', books vehicles and other items of equipment as are necessary for the bankrupt to continue his employemnt, business or vocation and such clothing, bedding, furniture, household equipment and provisions as he needs to satisfy the basic domestic needs of himself and his family.

No bailiffs enter your home :)
Raphael Gilbert
Head of Insolvency Divison www.ban

hassan

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Re: Little known facts about bankruptcy
« Reply #4 on: Dec 19, 2009, 03:38:45 AM »
"furniture, household equipment"

So I take it my computer is ok then - it was very high-tec in its day, but still used for work purposes.

How about tv / home cinema? Not strictly a necessity, but if I knew I was expecting visitors I would make sure it was elsewhere for 'repairs'

craig1985

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Re: Little known facts about bankruptcy
« Reply #5 on: Dec 21, 2009, 06:48:00 AM »
very nice points but as posted before i too would be very scared of appearing in court but i think i'd feel more stupid than scared for having let myself get in the situation that i have

bankruptcy.co.uk

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Re: Little known facts about bankruptcy
« Reply #6 on: Mar 10, 2010, 02:09:34 PM »
You can view the day of the court with negativity and fear. I understand this as quite frankly it is NOT a nice day....
 
I ask one question, this is the one day that stands in between you and freedom.
 
I prefer creating positivity out of a situation. How about considering the positives. It is the day you walk in with an almost broken back from the financial and emotional burdens that you are carrying, and the day you walk out a free human being with a positive future.
 
I train my clients into believing this, as they then understand that this is not a day to be feared... but a day to be looked forward to. My clients look forward to this day, in fact it is their ultimate goal!
 
It's all a matter of perception.

Best of luck!!
 
Raphael Gilbert
Raphael Gilbert
Head of Insolvency Divison www.ban

bankruptcy.co.uk

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Re: Little known facts about bankruptcy
« Reply #7 on: Mar 10, 2010, 02:11:48 PM »
Hassan...
 
The likelyhood is, bailiffs no longer come round to check so frankly you don't have an issue.
 
HOWEVER, legally and ethically you should disclose these assets into your statement of affairs.

If you did that, they would be taken and removed as assets.
if you didn't you would be being very unethical but frankly the chances of being caught are 0.01%.
 
If you were caught, you would be charged with failing to provide a full statement of your affairs and your name would then under the insolvency amendment rules of 2009 be placed into the local paper. A Bankruptcy restriction order is also a heavy possibility.
 
I cannot in anyway condone or advise you to do this, but the chances of being caught are slim.
 
Best of luck!
 
Raphael Gilbert
Raphael Gilbert
Head of Insolvency Divison www.ban