Guide to Bankruptcy

It may let another person take over your agreement if your payments are up to date. The official receiver will use the money from the sale to either pay for the new vehicle directly or give you the money to buy one. You should consider seeking independent financial advice about your options – contact a debt adviser. If you do not make your payment, the trustee can: The Form J restriction will be removed once the trustee has been paid this money.

You must keep paying rent and any new debts after the bankruptcy. You cannot declare yourself bankrupt in England or Wales if you live in Scotland or Northern Ireland. It could be an offence under insolvency law if you do not tell the official receiver about your gender change. You can ask the official receiver to put your discharge or annulment in the Gazette.

It can take time for all assets to be dealt with. They will also be your trustee unless an insolvency practitioner is appointed to take over that role. If someone else has applied to make you bankrupt you’ll get a copy of the petition so you’re aware of the situation. The restriction at Land Registry will be removed. If you do not, your bankruptcy could be extended beyond the normal 12 months and you could face an examination in court.

Or your utility accounts may be transferred to a spouse or partner. You might not need to pay bills that are unpaid at the date of your bankruptcy order. The cost of a DRO is £90. They may also advertise it in other ways.

The examiner will: If the IPA or IPO is wholly paid out of this extra income, it will stop when you start paying tax again. Any previous name included in the bankruptcy petition will appear on the bankruptcy order, and in the: You’ll still have to pay any debts not paid in your bankruptcy. Plymouth As an alternative to bankruptcy you can enter an IVA before a bankruptcy order is made to avoid bankruptcy, or propose an IVA after a bankruptcy order has been made.

To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: Collect together all the paperwork you’ve been asked to take to the interview or have with you during the telephone call. The registration number will be valued. If your family home has not been dealt with 3 years after the bankruptcy order, the interest may be given back to you.

You will be freed from bankruptcy (discharged) after 12 months. If you’re having a telephone interview, return it by the date given. The NT will not tell your employer you’re bankrupt as an NT can be applied for a number of reasons.

A charging order fixes the amount the trustee will get from the property when it is sold. If you do not have access to email you can make a request by calling 0300 6780015 (select option 3 followed by option 5). If you can afford it, the trustee will ask you to make regular payments towards your debts from your income through an income payment agreement (IPA).

You need to provide a copy of your Certificate of Discharge or order of annulment from the Chevrolet colorado 2017 in nigeria court and make the request within 28 days of the date the certificate is issued or the order is annulled. Normally you will have to pay all of this surplus income as your IPA payment. A finance agreement can be a: If you die while bankrupt the trustee will claim any death benefit, usually a lump sum payable from the pension, where a person has not already been nominated to receive the benefit. Bankruptcy is unlikely to affect your rental situation if you are up-to-date with your rent but it’s a good idea to seek legal advice on what will happen under your tenancy.

Any sale of your property and assets will remain valid, but your unsold assets will be returned. Read more on this in the Information Commissioner’s Office ‘Credit explained’ document. This is not a complete list and other expenses may be considered. If your beneficial interest is more than £1,000, the trustee can sell the property or apply for a ‘charging order’ as an alternative to a sale. The exception is if the bank has a charge on your home (security for payment of a loan like a mortgage).

This tells your employer not to take any further income tax from your wages for the rest of the tax year (ending on 5 April). Some banks will let you use your old account after they’ve spoken to the trustee. Assets you had during bankruptcy can still be used to pay your debts once your bankruptcy has ended.

You might need to ask the credit agencies to update their records to include details of your discharge. The buyer should contact the trustee. The Bankruptcy Order made in England and Wales may not be recognised in other countries outside the UK.

Any transfer value may belong to the trustee. You must include your previous name on your bankruptcy petition if you had the name in the past 5 years and: There’s a 3 year time limit for selling the family home from the date of the bankruptcy order. An IVA is a binding agreement between you and your creditors to pay all or part of what you owe them. The trustee will review your financial agreement to see if there is a benefit in claiming the vehicle for the estate.

You can apply to make yourself bankrupt online. If your bankruptcy is being handled by an insolvency practitioner then the administration and the general fees will still be charged, but they will charge their own schedule of fees rather than the asset realisation and distribution fees that the official receiver would charge. You must attend the interview and cooperate with the official receiver. You’ll normally be discharged automatically, even if: This is called ‘set off’.

2 William Prance Road If everyone is paid in full (including the fees referred to above and interest on the debts) you can apply to have your bankruptcy cancelled (annulled). Bankruptcy is one way for individuals to deal with debts they cannot pay. If the trustee decides they will not be claiming the vehicle, they will give notice to you and the finance company. The trustee can ask to release some money: If emailing discharge queries, include your full name, date of birth, current and previous address, national insurance number and bankruptcy or court reference number. If you get a lump sum while you’re paying an IPA or IPO, you might be asked to make a one-off payment from it.

A bankruptcy order can be made for one of three reasons: If an IVA has been agreed, this will be put on your file. You will be removed from the Individual Insolvency Register within 3 months of your discharge. If you own the property with someone else: The restrictions on your business end when bankruptcy ends, unless the official receiver feels you’ve been dishonest. The court will not make an IPO if it leaves you without enough money to meet everyday needs. If you want to complain about the official receiver, read our Complaints Procedure You can open a new bank account after the date of the bankruptcy order but you must tell the bank or building society that you’re bankrupt.

If you were made bankrupt before May 2000 your pension funds transferred to the trustee. This publication is available at This fee is only chargeable on cases where a bankruptcy application was made or a petition presented on or after the 21 July 2016. A fee will be charged in all bankruptcy cases where an IPA or IPO is set up.

Most pension schemes are not included in your bankruptcy (for bankruptcy orders made after 29 May 2000) and they cannot be claimed by the trustee. You’ll need to check the details of the bankruptcy are removed from your credit record. The 3 main UK credit agencies are TransUnion, Equifax and Experian.

An official receiver works for the Insolvency Service and is attached to the court. 2 William Prance Road Any business assets will be claimed by the trustee. It is for you and the person who bought the vehicle to prove the vehicle was not a gift.

Otherwise, money owed to the bank (for example, if you’re overdrawn) is a bankruptcy debt, so you cannot pay this to the bank directly. You can start trading again, but you’ll have to follow certain rules. Payments made to you from your pension scheme, including any lump sums, before the end of your bankruptcy can be used as part of an Income Payments Agreement (IPA) or Income Payments Order (IPO). If you have assets, money from the sale of these will be used to pay the costs of the bankruptcy process before creditors are paid.

The official receiver may take an offer from a third party to buy the number to let you keep it. Fill in a form for cancelling the bankruptcy entry for Land Charges. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

If offered a telephone interview you can ask to be interviewed in person, if you prefer. Your bank account will be frozen. The court will set a date for your hearing, which you must attend.

The extra money in your pay that results from this can be claimed by the trustee to form part or all of an IPA or IPO. The official receiver will not tell the credit agencies when your bankruptcy ends. The bank is allowed to use money from one of your accounts to pay your debts on another account you hold with them. If your pension is part of the bankruptcy, it can be used to make payments to your creditors. Payments normally last for 3 years (longer than the period of bankruptcy itself).

HMRC will apply a ‘nil tax code’ (NT) when you’re bankrupt. PL6 5WS The IPA or IPO can be updated if your income changes. You’ll need to keep up payments using your disability living allowance or personal independence payment. A ‘family home’ is any property you, your spouse, civil partner or former spouse or civil partner is living in at the date of the bankruptcy order. The official receiver will take control of your assets unless an insolvency practitioner is appointed.

The bankruptcy process: If your case is administered by the official receiver the following fees will all be deducted from the money realised: It does not apply to companies or partnerships. The finance company may decide to take back the vehicle when you become bankrupt. The trustee will sell your assets and tell the creditors how the money will be shared. You must keep making any payments agreed under an IPA or IPO.

You need to include: If you own your home it can be sold if it is the only way to pay your creditors. Your bankruptcy will stay on your credit file for 6 years after the bankruptcy order is made. The pension is no longer available to you, but you may receive money from the fund once the trustee has paid the creditors who claimed in your bankruptcy. Before the interview, telephone the official receiver to confirm or rearrange the appointment; let them know if: Once notice of the annulment is received your bankruptcy will be removed from the Individual Insolvency Register after: The trustee will send notice to the Land Registry and the restrictions will be removed. You must provide proof of purchase for your new vehicle within 1 month.

You must include a copy of your court order. Your trustee can put an advertisement in a newspaper asking creditors to submit claims. If your discharge status is “suspended indefinitely” you need to contact the official receiver for an update. If the interest in your family home is returned to you, the Land Registry will be told that the property is no longer part of your bankruptcy estate. Land Charges Department You will not automatically be sent a letter saying you’ve been discharged.

You’ll have to provide proof of income and spending and details of your spouse or partner’s income. If there are insufficient assets in your case the official receiver will still process your bankruptcy. If you’re self-employed, your business will be closed. The early stages of a bankruptcy are normally handled by an official receiver.

Land Registry Bankruptcy Unit If your situation changes this may affect your case. If your beneficial interest is less than £1,000 at the end of this period no action will be taken and the interest will return to you. Check your discharge date using the Individual Insolvency Register on our website. If you do not meet these payments, the trustee can then apply to extend your bankruptcy. You must give details of your income and spending in: This will involve you paying some of your debt with your income.

Any money left over will be returned to you. The guide price for a replacement is £1,250. You can get a court order to stop this by calling the court and asking for a ‘stay of advertisement’. Seaton Court You may have to pay a deposit for future supplies of gas, electricity or other utilities. If you have been sent a questionnaire, fill it in, and note down anything you do not understand.

Do not ask for proof before the discharge date. After the interview, the official receiver will send a report to your creditors showing your assets and debts. You enter an IPA voluntarily, but there’s a written binding agreement between you and the trustee. If you’re registered as the current keeper of the vehicle the trustee will treat the vehicle as yours even if you did not buy it. If you are behind with your rent your landlord can still apply to evict you even if the rent arrears are included in the bankruptcy.

You must contact your trustee immediately if this happens; they can decide to reduce or increase your payments. You can ask the court not to make you bankrupt but you will most likely need to pay the debt or prove to the court that you do not owe the money. You must tell the official receiver you have done this. The bankruptcy can stay on your record for 6 years after the date of the bankruptcy order.

The price paid will be the market value of the vehicle but must at least cover the agent’s costs for the sale of the vehicle. Find out more about how we use information in our Personal Information Charter. You will need to apply to both Land Charges and Land Registry to have your bankruptcy entry removed from any properties you still own after paying your debts. You’ll be freed from your debts once your bankruptcy has ended, except for: You can apply for your bankruptcy to be cancelled (annulled) if: The more organised you are, the more straightforward the process will be. You need to send Land Registry either: If you want to complain about the insolvency practitioner, use the online form To find out if a registration, licence or permission for your work will still be valid, contact the person who issued it.

The trustee cannot usually sell the property without your agreement for a year from the date of the bankruptcy order if you have a partner or children living with you. If your vehicle is not exempt you may be able to keep it if a third party can pay to transfer it to them for you and you provide a: Your interest in the policy benefits will transfer to the trustee. If you’ve been made bankrupt by one of your creditors the official receiver may also contact you by telephone to find out if there is anything that needs to be sorted out urgently. The Gender Recognition Act says that individuals will commit an offence if they disclose a gender change wrongfully to others. Assets you can keep include: The trustee will decide whether your previous gender needs to be disclosed as part of your bankruptcy.

Telephone interviews take at least 30 minutes. Plymouth If you cannot provide all the necessary information or the examiner needs more time to complete their enquiries, you might be asked back to another appointment. The fee is set at £150 which will cover the specific costs incurred by the Official Receiver of arranging and setting up your IPA or IPO and will be collected from the first payments you make into the arrangement. Assets that are part of the bankruptcy stay under the trustee’s control when your bankruptcy ends. They will also report to the insolvency Service if they think you might have broken the law in your financial dealings.

You can still sell the property, but the trustee will get your share of the money from the sale. When the bankruptcy order is made, you must: If you’re the only owner of the property: They’ll make this claim to the National Insurance Fund, or the money may be claimed in the bankruptcy process. If you do not want to keep the vehicle the official receiver will dispose of it. The pension scheme must be a UK state pension scheme or a scheme approved or registered by HM Revenue & Customs.

The restriction will be removed once the trustee has been paid for their interest in the property. If your bankruptcy is approved, you’ll have an interview with the official receiver. If you do not do this, the entries will remain for 5 years. The payments will come from ‘surplus income’ (also known as real disposable income).This is money you have left after paying your living expenses.

You can stop a sale taking place later if a family member or friend buys the beneficial interest in your home. If your main or only income is state benefits, the trustee will not normally try to get an IPA. If someone else has already made payments for you, they’ll become a creditor in your bankruptcy.

After you arrive: Your bankruptcy can be extended for longer than 12 months if you do not co-operate with your trustee. They can then apply to extend the restrictions Next, money will be used for: To annul your bankruptcy you need to: You should ask them how much it will cost to administer your case. If you think the official receiver has wrongfully disclosed your previous gender you can follow our complaints procedure. This does not apply if you own your vehicle through an ongoing hire purchase agreement (see ‘vehicles under finance agreement’). You cannot make payments directly.

Your reasonable domestic needs may also include: If you co-habited with your partner and have now separated, the property that they or your children live in is not a family home. You can make direct payments for: If your vehicle is exempt but valuable it can be replaced with a cheaper alternative. Tell the official receiver if: Face-to-face interviews may take 2 to 3 hours.

You’ll need to give your assets to the trustee.

Guide to Bankruptcy


p> The law says you must cooperate fully with them. A vehicle under a finance agreement cannot be exempt from your bankruptcy. This usually takes less than 8 weeks, though it can take up to 12 weeks.

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. These are called restrictions. Creditors must then make a formal claim. You should check if the entry has been removed after 6 years.

The person who takes control of your assets is known as the ‘trustee’. There are also things you cannot do while bankrupt. They may sell or surrender the policy to collect money for your creditors. Any money in your account will be an asset and claimed by the trustee. If this would give you access to enough money to make a different arrangement to pay your creditors, the trustee can ask the court to cancel (annul) the bankruptcy.

Otherwise, you need to tell the official receiver that all your debts, assets and financial dealings are in your new name. If you are able to take money from your pension following changes to the law in April 2015, but have chosen not to do so, the trustee may look at the value of your available pension fund. Seaton Court When an annulment is made you’ll return to your pre-bankruptcy status.

You can declare yourself bankrupt in England or Wales if you live outside the UK, provided you lived in England or Wales or have had a business there at some point in the last three years. PL6 5WS This ends the bankruptcy restrictions and releases you from most of the debts you had when the bankruptcy order was made. They’ll disclose the information if: If these items are valuable they can be taken by the trustee and replaced with a cheaper alternative. For bankruptcy, disclosure is allowed if it’s: If you’ve presented your own bankruptcy petition, this might happen directly after the bankruptcy order is made.

If you are allowed to keep the vehicle you remain responsible for road tax, MOT and insurance. Your motor vehicle will be sold to pay for your bankruptcy debts, unless you need it: The official receiver may use private debt collection agencies to collect the payments. If you have a Motability vehicle on lease, it’s up to Motability if you keep it.

The trustee will realise (sell) any assets (except any reasonable domestic items and items needed for your job). If you want to keep the policy, you may be able to work out a solution with the trustee. The official receiver will write to you within 2 weeks of the bankruptcy order being made, explaining what you need to know and what you must do. If the official receiver agrees you need the vehicle, it will be classed as ‘exempt’ and not included in your bankruptcy. If you fall behind with your mortgage payments, your lender may sell your home.

The official receiver will put your bankruptcy in the Gazette, which publishes legal notices and provides a permanent public record of your bankruptcy. If someone else has made a bankruptcy petition against you but not noted your gender change, you must tell the official receiver. Normal monthly expenses are costs like rent, a mortgage, bills, food and clothing for you and your family (everyone who lives with you and depends on you). It costs £680 to apply to become bankrupt. An insolvency practitioner is usually an accountant or solicitor.

If your pension scheme is not an approved or registered scheme you might be able to exclude it from your bankruptcy by: If an IVA has been agreed, details of this will appear on the register. To get proof: Also send copies of your application and witness statement, with the hearing date, to: Approved or registered pension schemes are usually: There are some exceptions to the payment rules. Your employees may make a claim for unpaid wages and holiday pay, payment in place of notice, and redundancy.

Alternatively, your letter from the official receiver may invite you to an interview either in person or by telephone. If a person has been nominated within the pension scheme to receive the death benefit, it will still be paid to them. If you cannot agree on payment amounts for an IPA, the trustee can apply for an income payment order (IPO).

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