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helenh
Starting Member
6 Posts |
 Posted - 25 October 2008 : 10:49:08
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I can,t follow what insolvency means and if thats different from bancruptcy very well because of the language problem( Chinese is my mother language).
Could some one explain very simply how it goes or say when I have it wrong please. Say when its clear company debts can,t be paid can people then declare,s thier co ltd and them selve,s bancrupt to some one or do they have to fill in forms to do this?
Once some says they are bancrupt does a person called a reciever goes to look at what assets the person has for eg on thier building site,s and would this be the materials there on the site or the returns the house building brings?
When the house a person with a company live,s in is used for bank loans for the business the reciever goes to the house, is this to look at the value of the property or to look at what some one has inside or both? Do they make people sell thier things or take thier computer etc?
Are all the things like building site and owners home etc the assets or do other things like savings come into it?
How long does it take for the reciever to list the assets and what happens once that is done and how long does it take?
Is it true that people are bancrupt for a year and what happens if they don,t have any income does thier house get sold? If they get an income does it get taken off them and how much money are they aloud to keep if so? What if the person just has incapacity benefit from a work injury?
If any one wants to explain very simple language, thanks.
Helen
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 25 October 2008 : 11:22:56
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Hi Helen
I will see if i can make this make some sense.
Insolvent means that you dont have enough monies to service/pay for your debts.
If you dont have enough money to pay for your debts then you can apply to go Bankrupt and the debts meaning the creditors will be taken over by someone called an Official Receiver who then is basically working for you and dealing with them and making sure that you are not liable so to speak for the debts anymore, but that only includes unsecured debts not things like mortgages as they are classed as secured unless you default and a repossesion or you move out and dont pay then it can become an unsecured debt and can be included in your bankruptcy.
Jo
x
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Jo's Links and added info on Bankruptcy!
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 25 October 2008 : 11:30:11
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They dont come to your house like a bailiff to check on you and yes they can if they wish sell on your assets if it is of enough money to help pay towards your creditors. They wont just take stuff it would have to be enough to sell on and buy another for you and have money left over for the creditors.
All assets are included in a BR as you need to inform the OR within the statement of affairs of all assets that you have or have had within the last 12 or 24 months so they can be made aware of these and their values.
If you have a business then you need to take proper advice and again with a home with equity you need to speak to an adviser, call our helpline 0800 078 9367 and they can go through the options with you alternatively you can contact one of the other experts listed on the left side of this page and ask for their professional advice on what to do for the best.
Normally bankruptcy only lasts for 12months now providing your case is straight forward and that they dont consider that something in your information warrants a bankruptcy restrictions undertaken, that is when you may have taken out more credit for example and not paid anything back or sold a house and not used any of the monies to pay towards your creditors instead had an expensive holiday or bought a new car.
If your on benefits then technically you should not have to pay into an IPA incomes payments agreement but its down to the OR as they will deal with your case on an individual basis.
You can also if your income is low or on certain benefits get an allowance on the fee for BR which is £495 that reduction if entitled save you £150 but you would need to contact your local court to see if you qualify.
Hope that helps
Jo
x
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Jo's Links and added info on Bankruptcy!
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
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Edited by - Needafriend on 25 October 2008 11:32:30 |
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helenh
Starting Member
6 Posts |
Posted - 05 November 2008 : 10:41:00
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Hi,
A couple of things arn,t clear so I was wondering once all the paperwork is handed over to the reciever and co lts work materials have been removed for sale at auction there is a creditors meeting, which the bancrupt has to attend.
Is this a one off meeting and doesn,t the reciever or administrator take over the correspondance and paperwork leaving the bancrupt out of dealings with creditors, after the meeting?
At which point of insolvency is the house likely to become of interest, any time after the creditors meeting which the insolvent has to attend? Thanks
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