Is bankruptcy the right solution for you?

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How we can help Why our first rate bankruptcy advice works

Advice, tips and expertise to help you get your finances under control

Tythebarn Finance can asses your personal financial situation and help you decide if bankruptcy is the correct solution for you. We will do our utmost to ensure you have all the information you need before you make a decision on solving your debts. If you do find bankruptcy is your preferred option, we can then help you with the bankruptcy forms and help you submit your application.

Bankruptcy is an option that should be considered when you are unable to find a way to repay your existing unsecured debts. An individual going bankrupt for the first time will generally receive a discharge 1 year after the date of the bankruptcy order.

Bankruptcy should only be considered once all other possibilities out of debt have been exhausted. Bankruptcy is a big step and one, which needs to be considered very cautiously. The effects that bankruptcy has on your life and credit ratings are severe. Ultimately bankruptcy is the last step in dealing with debt problems. If an IVA, a Protected Trust Deed or a Debt Management Plan are not a viable options then bankruptcy can be considered.

Its worth noting that once bankrupt you will be subject to some restrictions.
You would not be able to:


Get credit of £500+

Obtain credit of £500 or more alone or jointly with another person without disclosing your bankruptcy.

Business in another name

Conduct business directly or indirectly in any name other than that in which you were made bankrupt.

Involved in a company

Be involved directly or indirectly in promoting, forming or managing a company without the Court's permission.

In office

Hold certain public offices.

With Bankruptcy Help, your entire unsecured debts could be written off completely.

Bankruptcy Basics Learn the fundamentals of Bankruptcy

How it works

To become bankrupt you will either have to make a Bankruptcy petition by completing the 6.27 form and the statement of affairs form 6.28 or one of your creditors whom you owe more than £50 to can petition for your Bankruptcy. If a creditors petition has been presented and you disagree with it you must try your level best to reach an agreement with the creditor petitioning for Bankruptcy before the Bankruptcy hearing itself reaches the court, as stopping the process once it has started might not be possible.

How fast can I start?

To begin the Bankruptcy process you will need to petition a court which deals with these cases by completing the forms detailed above and delivering them (to your local county court). There are also certain fees that apply at this stage.


After your application for Bankruptcy you will be required to hand any assets over to an appointed ‘Trustee’ who will then manage your Bankruptcy. The Trustee will either be the Official Receiver or an independent Insolvency Practitioner (this depends on your financial situation and whether or not you own any assets at the tie of your bankruptcy). The length of a Bankruptcy will depend on your situation but most Bankruptcy terms last for 12 months from the date you were declared bankrupt. We understand Bankruptcy can be an intimidating process which is why we through our partners, offer a professional Bankruptcy service which can help you through the whole Bankruptcy process.

How much will it cost?

The Court fees that you must pay to make your application for bankruptcy is currently £650 to £700. This can be broken down with the official receiver costs of £525 and the court issue fees of £175 (£115 in Northern Ireland).


If you are in receipt of certain state benefits then there are instances where the Courts issue fee can be reduced. If you require us to provide an assisted Bankruptcy service to you through our partner then an additional fee will apply depending on the complexity of your circumstances nut will typically be around £500.

What happens next?

A court hearing date is set and you will be required to attend a ‘closed’ court session, typically with just you and the Bankruptcy clerk. It is unlikely you will need to see a Judge unless they need to clarify something with you. The Bankruptcy clerk will take you through the papers you need to sign and you will have to take an oath that the information contained within the papers is true to the best of your knowledge. Following this the papers are sent to the judge who will then make the order and declare you bankrupt.

What happens after I’m declared bankrupt?

At the time the court order is made all of your estate (ie your assets) will transfer to the Official Receiver. At a later date you will be invited to a meeting in order for the Official receiver to question you about any assets and bank accounts that you may have. The Official Receiver will take over the management of your creditors and will write to them and any representatives appointed by them to notify them of your Bankruptcy and the fact that the Official Receiver (or another Insolvency Practitioner) will be dealing with your financial affairs from now on.

What are my duties once I’m declared Bankrupt?

Once bankrupt, you will be obliged to comply fully with any requests made by your official receiver. They may require you to provide a complete list of all your assets and liabilities and to hand over all books, statements and papers relating to your financial affairs. You will also be required to inform your official receiver of any changes in your financial circumstances whilst you are bankrupt. You will also be advised to stop using your current bank accounts and we will help you find a new bank account. You will not be able to obtain more than £500 credit from any source without first notifying them that you are bankrupt.

The right choice? Learn what's involved in Bankruptcy so you can make the smart choice.

Advantages

Key advantages of Bankruptcy
  • Your entire unsecured debts can be written off completely.
  • Peace of mind and possible discharge after one year or less.
  • For the creditors, bankruptcy allows a full investigation of the debtor's affairs to be carried out.
  • Your unsecured creditors will be unable to pursue you further for money owed
Sign up for Bankruptcy Help

Disadvantages

Summary of disadvantages
  • You can't obtain credit for £500 without permission
  • You cannot act as a company director
  • No trade in businesses without all involved knowing.
  • You may not become a member of the local authority
  • Your credit rating is affected for years after the annulment
Sign up for Bankruptcy Help

Bankruptcy Alternatives

If you feel bankruptcy is a bit too extreme for you then we do offer alternative debt solutions that might also be suitable to address your financial problems.

Informal Debt Management Plan

Our partners have a wide range of partners can assist you to set up an informal debt management plan (also known as a financial management programme) which will allow you to make affordable and realistically manageable repayments to your creditors. The repayments under a debt management plan will depend on your income, outgoings and your personal circumstances so you will only have to pay what you actually can afford to.

Tythebarn Finance has a wealth of experience and expertise in arranging debt management programmes and negotiating with creditors.


IVA

An IVA, or Individual Voluntary Arrangement, is a legal arrangement between you and your creditors that enables you to make repayments against your debts at a rate you can realistically afford.

IVAs typically last 5 years. Tythebarn Finance has a team of experienced debt advisors who will be able to assist you in deciding what the best course of action for you might be. We, through our partners, will assist you to secure the best possible outcome for you. Whatever your circumstances, our advisors have a wealth of experience in finding the best debt solution for consumers in financial trouble. Find the right way forward with your personal finance problems. Get in touch today.

BANKRUPTCY FAQ'S

Well, firstly you will be able to manage your creditors directly. The Official Receiver will in the first instance take over the management of your creditors.

There are some exceptions to this, for example if you are keeping up payments on a mortgage, which would still need to be made to your mortgage provider. Please note that if you do own a home and stop paying the mortgage your home may be repossessed by your mortgage lender. Your IP or OR will tell all your creditors that you are bankrupt. They will arrange for the sale of any assets you own and then arrange to pay out any money realised from your estate to pay the costs that they incur in this regard and then to those creditors who have claims against you.

The costs of the bankruptcy proceedings are paid first from the money that is available, including any fees payable to the IP for administering your case. Preferential claims are paid next and then any available money is paid to other creditors.

If you own a home, in whole or part, that asset will be regarded as part of your estate and may be sold to pay your creditors.

The OR will assess the value of the property and any loans secured upon it and decide what to do with it. If it is a family home then proceedings may be halted for up to a year whilst you arrange alternative accommodation for you and your family.

To obtain full details on what can happen to your home in a Bankruptcy you should read “What will happen to my home” on the Insolvency Service website.

Pensions are not typically included in a bankruptcy estate and have not been since 2000 as long as they are in a scheme approved by HM Revenue & Customs. However this is currently being challenged in the courts and pensions may form part of a bankruptcy state initiative. This will depend on various factors eg: your age. We will advise you if your pension is likely to be affected in the event of your bankruptcy. Life policies do however form part of the assets of an estate and they may be sold or surrendered to release assets to pay your creditors.

There are a number of restrictions on you as a bankrupt including the inability to borrow more than £500 from anyone without telling them you are a bankrupt, carrying on a business in a different name to that when you were made bankrupt without telling people and being concerned in or acting as a director in a limited company. You will also be forbidden from holding certain public offices and you may not work as a trustee of a charity or pension fund.

You may open a new bank account however you will have to disclose that you are a bankrupt and you may not have any money over and above that which is agreed as your minimum living requirements as that would need to be handed over to your trustee to pay your creditors.

You will be free from bankruptcy after 12 months. However, if appropriate your OR may apply to the court for a Bankruptcy Restriction Order which has the effect of extending the period of your bankruptcy. You can also become free immediately if the court annuls your bankruptcy order. If however you have not honoured the obligations of the bankruptcy order then the court can order that your discharge is postponed, so it is vital therefore that as a bankrupt you do everything that is asked of you in order to clear your debt obligations. After the court discharge you are no longer liable for any of the debts you had prior to becoming a bankrupt and you are free once again to start to re build your life.

About us The who, what and why our company exists

We are Tythebarn Finance. We work with debt management specialists who have over the years helped thousands of people manage their debts.

Full range of solutions

We provide a gateway to approved and authorised partners who can offer the full range of debt solutions for people who are struggling to make contractual monthly payments on unsecured debts. This allows full investigation into the advantages and disadvantages of each solution available and thus providing a solid platform to make an informed decision.

First class

Tythebarn Finance prides itself on its first class service and highly trained advisors whose sole aim is to provide you with comprehensive advice to produce the best possible outcome for you.

If you have any questions please contact us here or by phone:

0800 014 7696

Useful Links You can find very useful further information about Bankruptcy from the links below provided by one of our partners.