Bankruptcy & Debt Help
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Attention- New Bankruptcy Application Process Started 6 April 2016
Kealey Consulting offer a tailored, personal, bankruptcy assistance service to insolvent, financially distressed individuals within Liverpool, Merseyside and beyond, that enables you to be debt-free and discharged from bankruptcy in just one year.
Going bankrupt has become something of a more "user-friendly" way of dealing with personal debt in recent years. As of 6 April 2016 bankruptcy petitions are no longer presented at Court. All applications are to be made online. NOTE! You should only apply after giving proper consideration of all other options such as IVAs, and Debt Relief Orders.
Taking professional advice first is essential.
The realities of the bankruptcy process and in particular the effects and in many cases the benefits that bankruptcy can bring often come as a surprise to many people. It is worth stating right now that everyone’s situation is unique and what may be good for one person, may have very different consequences for another. Independent advice should always be sought from a professional advisor such as a solicitor with knowledge of the bankruptcy process, a licensed insolvency practitioner or someone similarly professionally qualified to advise on bankruptcy. At Kealey Consulting, you will be in the hands of one of the most experienced personal insolvency specialists in Liverpool. Bankruptcy help is just a call away.
I'm often asked:
Who can go bankrupt?
When we talk about bankruptcy on this website we are referring to the laws of England and Wales. Scotland has its own bankruptcy system with its own set of terminologies, laws and regulations. In England and Wales, bankruptcy refers only to individuals. In other countries like the USA for example, the word bankruptcy can apply equally to companies. Whether you are a sole proprietor, in a partnership or even if you don't have a business but have personal debts, then you will be entitled to file your debtor's bankruptcy petition if you are insolvent. Being insolvent is the key criteria of course and for most people that means that you are unable to pay your debts. It can also mean you have more liabilities than assets. If you cannot pay your debts you should seek bankruptcy help as soon as possible.
How do I declare myself bankrupt?
Good News! New Bankruptcy Application Process Means You No Longer Have To Go To Court!!
From 6 April 2016, applying for bankruptcy must be done online at the Insolvency Service website. There will be no need to petition via your local county court any longer. The information requested in the application process remains the same as before and the application process will result in the production of your Statement of Affairs. The statement of affairs is a lengthy document which summarises your assets and liabilities and includes your monthly income and expenditure.
Your application will be considered by an Adjudicator within the Insolvency Service. Applying for bankruptcy is now more of an administrative process now that the Courts have been taken out of the process. There are instances where the Adjudicator may not grant an order and debtors would in such instances have to petition the Court to be made bankrupt. Instances where this may happen are quite specific and will likely be rare.
Filing for bankruptcy costs a total of £680 which consists of the Official Receiver's deposit of £550 and a bankruptcy application fee of £130. Overall, this is £25 cheaper than under the old system.
Call us now for details of this brand new bankruptcy application process.
Who will deal with my bankruptcy?
Initially, after the bankruptcy order is made the Official Receiver is appointed to deal with your bankrupt estate and he will contact you shortly after you've been made bankrupt. If you have assets or if you must make payments from income under an Income Payments Order or Income Payments Agreement then it is likely that a licensed insolvency practitioner will be appointed as trustee in bankruptcy to deal with your assets and/or income payments.
Is there a stigma to going bankrupt?
Bankruptcy long since carried an amount of stigma and shame but attitudes have changed and there is no need to worry about what other people might think about bankruptcy anymore. Think of bankruptcy as a solution to a difficult situation that cannot be resolved in any other way.
Bankruptcy is not a process designed to punish debtors. It is simply a method of dealing with personal debts and liabilities that people are no longer able to pay.
Telephone: 0151 909 5862
Office hours: 09.00-17.00
How long does bankruptcy last?
For most people the period of bankruptcy is only one year. When the year has passed you will receive your discharge from bankruptcy. All bankruptcy restrictions are then lifted.
What are bankruptcy restrictions?
Such restrictions these days are few and far between. Whilst you are bankrupt you can't obtain credit of more than £500 without disclosing that you are an undischarged bankrupt. Of course, obtaining any credit at all is likely to be difficult for you during your year of bankruptcy.
You cannot be a director of a limited company. Nor can you "act" as a director of a limited company either. This means you mustn't carry out the duties of a director even if you are not officially listed as one.
Many people worry that they will be unable to carry on in their job if made bankrupt. Generally this is not an issue for most people and affects a small number of people who are members of professional bodies such as solicitors or accountants. Even many professional bodies have a more "enlightened" approach these days and if you are at all concerned you should speak with your professional body as soon as possible. You definitely cannot be a licensed insolvency practitioner whilst bankrupt!
Finally, it is important to cooperate with the Official Receiver or Trustee in bankruptcy because any lack of cooperation can lead to your bankruptcy being extended and the bankruptcy restrictions remaining in place.
Will I lose my home if I go bankrupt?
Bankruptcy does NOT automatically mean you lose your home and in fact happens probably less than you imagine. At Kealey Consulting we pride ourselves on our ability to help our clients during the course of bankruptcy and this includes negotiating with the Official Receiver or Trustee in Bankruptcy to try and ensure that you can keep your family home. It is often the case that a payment in lieu of the equity can be made by a third party-often the non-bankrupt spouse. The amount of any payment required is highly negotiable because the alternative of possession and sale by your trustee is a time consuming and expensive process. It is in everyone's interest to seek an alternative and we will be happy to advise you further on the options available to you.
Benefits of bankruptcy
The most beneficial aspect of bankruptcy is that your unsecured debts are written off. What this means is that whatever you owe to your creditors at the date of bankruptcy cannot be pursued by your creditors ever again. It is a debt in your bankruptcy and creditors can take no further action against you. The good news is it means they cannot contact you ever again about what you owe them.
Filing for bankruptcy gives you the opportunity for a "fresh start", free from the pressures of debt. A fresh start also gives you the chance to start improving your credit rating again. You won't normally be able to obtain credit whilst bankrupt, and you may find it difficult for some time after your discharge to get credit, but you can make a good start by keeping your bank account in good order. After that, there are also low-limit credit cards available for those starting the credit repair process.
Remember! The key to solving your financial problems is to take debt advice as soon as possible. We are based close to Liverpool city centre and if you need bankruptcy advice we are ready to assist you.
If you need bankruptcy help or are considering filing for bankruptcy in Liverpool or wherever you are, contact us now: