| Plain English impartial advice for anyone with debt problems who wants to find out more about bankruptcy and the alternatives including entering into an Individual Voluntary Arrangement (IVA). |
|---|
|
How to make yourself bankrupt
 If you have looked at all of the options and are considering filing for bankruptcy in England and Wales, here's our step by step guide on how to make yourself bankrupt. more |
|---|
| BANKRUPTCY FIGURES FOR ENGLAND AND WALES, SCOTLAND, AND NORTHERN IRELAND In 2009, the number of personal bankruptcies in England and Wales totalled 134,142 while in Scotland the figure was 23,482 and in Northern Ireland 1,957. In 2008, the number of personal bankruptcies in England and Wales totalled 106,544 while in Scotland the figure was 19,864 and in Northern Ireland 1,638. |
|---|
 |
Media coverage of changes in the bankruptcy laws have painted a picture of bankruptcy as an easy way out of your financial obligations. But is bankruptcy really the easy way out that some would have you believe? Will you really be debt free after just one year? Will your boss be told? And what will happen to your house? |
|---|---|
Insolvency Service cracks down on bankrupts who try to hide assets 31st March 2010 Debtors who believe they can go bankrupt and hide some of their assets from the Official Receiver have been told to think again by The Insolvency Service. Anyone who is declared bankrupt must disclose details of all of their assets, no matter how small, or they face a penalty which could include having their period of bankruptcy restrictions increased by up to 15 years instead of the usual 12 months. The Official Receiver will also seek to recover such assets. The new warnings have been prompted by a surge in cases dealt with by Official Receivers where potential bankrupts have attempted to put assets out of reach of their creditors – up to nearly 200 cases this year compared with just 28 in 2008-09. Recent cases exposed by The Insolvency Service include bankrupt individuals who failed to disclose cash, insurance policies and even cars to the Official Receiver. All were found out and had their period of bankruptcy restrictions extended. This meant that their ability to borrow money, manage a company, or even stand for the local council, remained limited by the insolvency rules for even longer than the standard 12 months. "It is only fair to the creditors that we seek full disclosure of any assets that might be available," said Les Cramp, Senior Official Receiver for the Insolvency Service. "Potential bankrupts who want the debt relief offered by this form of insolvency must declare all of their assets straight away. It is then for the Official Receiver to decide which assets must be sold for the benefit of the creditors and which might be retained by the debtor." If the Official Receiver considers that the conduct of a bankrupt individual has been dishonest or blameworthy in some other way, he (or she) will report the facts to court and ask for a Bankruptcy Restrictions Order (BRO) to be made. The court will consider this report and any other evidence put before it, and will decide whether it should make a BRO. If it does, the bankrupt will be subject to certain restrictions for the period stated in the order. This can be from two to 15 years. The bankrupt may give a Bankruptcy Restrictions Undertaking (BRU) which will have the same effect as an order, but will mean that the matter does not go to court. Scottish homeowners faced with repossession given greater protection 31st March 2010 Homeowners in Scotland who are faced with repossession will be given greater protection under the Home Owner and Debtor Protection (Scotland) Bill which was approved unanimously by the Scottish Parliament. The Bill means that all repossession cases in Scotland will have to be heard in court, except where there is evidence that a property has been voluntarily abandoned. Lenders will also have to show that they have taken reasonable steps to avoid repossession and homeowners will be allowed lay representation to help them state their case if they cannot afford a lawyer. "There is no doubt that today's result will mark a huge leap forward in creating the right package of debt solutions to meet people's needs in these difficult times," said Rosemary Winter-Scott, The Accountant in Bankruptcy and Agency Chief Executive. Home repossessions at highest level since 1995 14th February 2010 46,000 homes were repossessed during 2009 according to the latest figures from the Council Of Mortgage Lenders - the highest number since the height of the last property crash in 1995. And there was more bad news with regards to mortgage arrears. 188,300 mortgages ended the year with arrears equivalent to at least 2.5% of the outstanding mortgage balance - 3% higher than at the end of 2008. That means for every £100,000 borrowed, 188,300 borrowers are in errors by at least £2,500. Within the total number of arrears cases, there is a different picture in terms of what seems to be happening among households with lower levels of arrears (where the numbers are improving), and higher levels of arrears (where the numbers are little changed). This suggests that at present some borrowers facing only modest difficulties are being helped by low interest rates to get back out of trouble, whereas those with more severe problems may be stabilising their arrears but not recovering from them. "The fact that mortgage arrears and possessions did not rise as much as we feared in 2009 is testament to the effect of low interest rates, and a great deal of concerted effort by lenders, government and the advice sector to help borrowers to address financial difficulties when they occur," said CML director general Michael Coogan. "We are not out of the woods yet - 2010 will still be a challenging year for many borrowers, and some households will inevitably find their finances being squeezed if and when interest rates do eventually rise. "But borrowers should feel reassured that lenders want to help them keep their homes wherever possible. The vast majority of people who get into arrears manage to keep their homes, and will do so even if interest rates rise. Seeking advice as soon as financial problems occur will help to minimise the risk of the situation getting out of control." |
 Answering your door to find a bailiff stood on your doorstep can be a distressing and frightening experience, particularly since few people know what powers bailiffs have at their disposal and what rights you have when dealing with them. One question that will no doubt be on your mind. Do bailiffs have the right to enter your home? and if so what are bailiffs allowed to seize if they do gain entry?  One big fear of anyone in debt or contemplating bankruptcy is that they will end up on a credit blacklist. The good news is that there is no such thing as a credit blacklist. Five more myths about obtaining credit |
||
 If you are unable to pay your debts when they fall due and have little prospect of doing so in the foreseeable future, a court of law can intervene and place you in a state of bankruptcy. In England and Wales, you can either make yourself bankrupt by applying to the court to do so or a creditor who you owe at least £750 can petition a court to have you declared bankrupt. In Scotland, personal bankruptcy is called sequestration.  An Individual Voluntary Arrangement or IVA is a formal agreement, between you and the people you owe money, to pay part or all of your debts over an agreed period of time. more  A Debt Relief Order or DRO is a new alternative to bankruptcy aimed at those on low incomes with few assets. more  Unlike bankruptcy which only affects individuals in the UK, insolvency can apply to both companies and individuals. more  A Bankruptcy Restriction Order (BRO) is a court order that extends the restrictions of bankruptcy from 12 months to up to 15 years. more  A CCJ - or County Court Judgement - is an order made by a County Court for a debt to be repaid. more What to do if a County Court Claim is made against you More bankruptcy jargon explained |
Number of CCJs issued hits ten year high
|
||
© Bankrupt.co.uk 2007, 2008, 2009, 2010. All rights reserved. Please note the contents of this website are for information purposes only and do not constitute financial advice. Please seek independent professional advice before taking action that may affect your financial well-being. |
|---|
