Author Topic: I could do with some bankruptcy advice  (Read 2669 times)

Steve112

  • *
  • Posts: 1
I could do with some bankruptcy advice
« on: Feb 10, 2010, 12:34:26 AM »
I am in debt around £40,000. I have been out of work for a while, and have not been able to find steady work over the past 2 years. As a result my finances are pretty messed up. I have been on a DMP for 7 months but it doesnt seam to be solving anything at all. An iva is a difficult option for me as my income is not reliable (sales, comm only). I've tried my hardest to pay these back but its seams to stay the same, I am now prepared to take the route towards bankruptcy. I have a property which is in negative equity, i want to know if my home will be at risk. This is the only thing that is stopping me from declaring bankruptcy. Will the lenders put a charge on my property? I'd like to know my if anyone can help, and offer the cheapest way to do this. I know there are some firms that will get legal aid for my bankruptcy. That will sure come in handy. I love this country! Thanks

Sovereign

  • Sr. Member
  • ****
  • Posts: 81
Re: I could do with some bankruptcy advice
« Reply #1 on: Feb 19, 2010, 12:27:47 PM »
Hi Steve112. I am not aware of any legal aid help that you can get for a bankruptcy application and the Court fee alone for someone working and not on benefits is £510.00. There is no guarantee that you will retain your home, but if it is in negative equity the liklihood is that the Receiver will sign it back to you. There is a fee of £1.00 for the beneficial interest and legal fees in the region of £400.00. For free advice look to the Citizens Advice Bureau or CCCS. The latter is the better option. There are many private Companies in the market that can help you but you will be looking at paying a fee to them.
Sovereign Consulting

bankruptcy.co.uk

  • Sr. Member
  • ****
  • Posts: 90
Re: I could do with some bankruptcy advice
« Reply #2 on: Mar 08, 2010, 06:09:06 PM »
Sovereign, I can see we are going to get along well on here! We seem to agree on a lot of things!! Excellent advice you are giving.
 
However, a few minor changes.
 
1) The court fee as of the 6th April is increasing to £600, this is a £90 increase of the Official Receivers fee so filling in an EX160 form is still going to mean a fee of £450 even if you are on benefits. (an EX160 form gives a court exemption fee of £150 to people on low income/benefits).
 
2) The official receivers guidebook states unequivocably that if your property is deemed to be in negative equity then you are given the option to buy back the beneficial interest in the property for £1 + appropriate legal fees. These fees are actually £211, not £400 and therefore the total cost of purchasing the interest in your property is £212. If your property is in positive equity, the official receviers guidelines state that you will either a) have the property entered into the bankruptcy estate and sold or b) have a charging order placed upon the property. However, since your property is in definite negative equity, you will be given the option to buy back the interest and therefore will not lose your home! :)
 
3) Free advice is available from CAB and the CCCS. Independant advice is available from other companies. What we have to look at is simple. Which is in your best interests?
 
a) The main negative in bankruptcy to an individual with no assets (or a house in negative equity) is something called an IPA.
b) An IPA is an arrangement made with your creditors that means you pay a monthly premium to the government every month for a period of 36 months. (Usually).
c) The method by which your IPA is calculated is based upon your disposable income (your net income - your expenses).
d) If your disposable income is below £100 you pay nothing, otherwise you pay a monthly % between 50% and 70% for 3 years.
e) Using an independant company can cost you money in the short term (their fee), however, they are able to maximise your propper and legitimate expenditure to therefore minimise your disposable income and therefore decrease the amount of money that you would pay in an IPA. Thus saving you thousands of pounds! (Obviously, I am biased as I am one of these companies!!!)
 
4) Your local water board has a charity section inside it that will help not only finance your bankruptcy, but will also help for £1 to £1 on funding any independant fees as well!
Raphael Gilbert
Head of Insolvency Divison www.ban

Sovereign

  • Sr. Member
  • ****
  • Posts: 81
Re: I could do with some bankruptcy advice
« Reply #3 on: Mar 10, 2010, 09:45:45 AM »
Hi Raphael,


You too are giving some excellent advice and I see that the site is becoming busier. At a recent meeting at the Southampton Official Receivers office, I was informed that the fee for a single person wnating to buy back the beneficial interest in a property was slightly in excess of £400.00. I believe £428.00 and a single person £211.00 as you have said. I did query this at the time and was informed by the examiner that she was right. Have you heard of this before?


Steve
Sovereign Consulting

bankruptcy.co.uk

  • Sr. Member
  • ****
  • Posts: 90
Re: I could do with some bankruptcy advice
« Reply #4 on: Mar 10, 2010, 12:13:25 PM »
Hey Steve!
 
Well, I stand corrected...... (Which is rare for me! haha).
 
Just confirmed with the Insolvency Service that if you are a joint owner of the property and go bankrupt then it is £211 + £1. If you are the sole outright owner of the mortgage then the fee is £1 + £470 legal fees. (This may be subject to increase at the start of the new tax year). The reasons behind it are that when the property is in a sole name the mortgage deeds are retitled into the OR's name and therefore it is a more complex legal fee passing back the beneficial interest.
 
I stand corrected!!!
 
Thanks for the great advice, I am almost OCD with the advice I give and love being 100% accurate. I'm grateful for the correction!!!
 
Raph :)
Raphael Gilbert
Head of Insolvency Divison www.ban