Published in Debt Advice Features on Friday, March 30 2007 0 Comments

When you are declared bankrupt and the bankruptcy order has been made against you, the Official Receiver will send you a questionnaire, which you will have to complete and return to him or her normally within 7 days. The questionnaire will contain forms for you to complete, one of these forms is an income and expenditure sheet, this will outline what you spend on day to day living expenses. If after you have covered your essential living costs you have money left over (disposable income) then the Official Receiver will ask you to make contributions into in an Income Payments Agreement.

Published in Debt Advice Features on Friday, March 30 2007 0 Comments

Bankruptcy would free you from any overwhelming unsecured debt you have, if a bankruptcy order has been against you whether that be making yourself bankrupt or your creditors making you bankrupt you would no longer be liable to make payments to your unsecured creditors. There are exceptions to what creditors would need to be paid, however the majority of creditors who you have signed an unsecured credit agreement with would not be paid directly by yourself and it would be up to the Official Receiver to administer your bankruptcy and make payments to your creditors with funds that could be available from you.

Published in Debt Advice Features on Friday, March 30 2007 0 Comments

Firstly, do not acknowledge to the creditor that you owe the debt. If acknowledgement of the debt in writing is made then you will be liable to pay the debt back. If any payment is made towards the debt, even after the six year limitation period has elapsed, then the Limitation Act 1980 will no longer be enforceable and you will be required to pay back the full amount.

Secondly, write to the creditor quoting the Limitation Act 1980 but do not acknowledge the debt. This will inform them of your intentions and make them aware, if they were not already, that they may no longer pursue you for the debt.

Published in Debt Advice Features on Friday, March 30 2007 0 Comments

In 1980 the Limitation Act was introduced by the government in order to determine how long creditors can chase debtors for an unpaid debt. The Act applies only to residents of England and Wales. If no contact has been made between the creditor and debtor within a stipulated time limit, it may mean the creditor may no longer chase the debt using the legal system to force repayment.

Published in Debt Advice Features on Friday, March 30 2007 0 Comments

Yes there are a few ways you end up paying for bankruptcy; through the fees, by handing over assets and by something known as an Income Payments Order.

Published in Debt Advice Features on Friday, March 30 2007 0 Comments

Your payments are almost entirely based on a detailed budget in the Individual Voluntary Arrangement? You may have seen advertisements that claim to write of 75% of your debts, but this is wrong as you have to pay back as much as you can and that is dependant on this detailed budget.

Published in Debt Advice Features on Friday, March 30 2007 0 Comments

The Individual Voluntary Arrangement is a debt solution that was brought in under the Insolvency Act in 1986 essentially by the government as a way to help people with their debts. This Government backing can be very reassuring, but because of the legalities of it there are many aspects that have to be adhered to.

Published in Debt Advice Features on Friday, March 30 2007 0 Comments

There are many reasons why people get in to debt, far too many to go into as every one has a unique set of circumstances, however you may find yourselves in situation similar to one of the ones below, you may even recognise that you are heading towards one of them and may be able to do something to stop it now.

Published in Debt Advice Features on Friday, March 30 2007 0 Comments

Yes!! Firstly I’ll explain what a Charging Order is. A charging order comes from an unsecured debt, where the creditor has applied to a court to get it secured against one of your assets for example your home. This now means they have a stake in your property for example, and if you were to sell the property you would have to clear that debt from the sale. Your mortgage is your first charge, a secured loan the second charge, and then say you had a charging order placed against you this would be the third charge.

Published in Debt Advice Features on Friday, March 30 2007 0 Comments

Usually it is only unsecured debts that can be included into a debt solution to help resolve your financial difficulties. As secured debts are to gain an asset, they have slightly different rules and you may lose what ever it is you are paying for if you do not keep up your repayments.