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

If you are having difficulty with the repayments into your IPA or IPO you must contact your bankruptcy trustee as soon as you feel that you cannot make the payments, it is always better to notify them that you may not be able to make the payments than to just default or miss the payment without telling your trustee in bankruptcy.

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

If your income changes in bankruptcy you must notify your bankruptcy trustee immediately regardless if your income has increased or decreased, there are a number of reasons why you should notify your trustee if this happens.

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

In bankruptcy you are required to disclose all your earnings it will be seen as you not cooperating fully with your bankruptcy trustee if you do not disclose your complete earnings.

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

Your bankruptcy trustee is charged with administering your bankruptcy, dealing with any assets you have an trying to raise as much money as possible to pay your debts out of any money raised. The Trustee will have to carry out an investigationӔ into your financial affairs. This would include determining if you could make contributions into your bankruptcy.

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

An Income Payments Order is similar to an IPA however you will be order legally by the court to make the payments into your bankruptcy estate. The terms of an IPO are stricter than that of an IPA and should be avoided where possible.

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.