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Testimonials
“We are extremely satisfied with the level of service and professionalism combined with a friendly attitude of all the staff we spoke to, and would like to thank everyone at Harrington Brooks very much.”
Mr and Mrs B, Liverpool
“We were really pleased with the efficient way that Harrington Brooks handled our enquiry and by the speed in which our mortgage was finalised.”
Mr and Mrs S, Birmingham
“I found the staff at Harrington Brooks were all very polite, helpful and understanding. I couldn’t fault the level of service we received from start to finish.”
Mr J, Warrington
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FAQ - Bankruptcy
1. Will Bankruptcy cost me my job?
This entirely depends on the industry in which you work. Members of certain professional bodies may be subject to restrictions so check your contract Terms of Employment in for a definitive answer.
2. Can I keep my home?
You always run the risk that your home could be sold to pay off your debt. Seek expert advice.
3. What are the consequences of bankruptcy?
Bankruptcy is not an easy way out. You have to carefully consider the consequences.
There is the stigma of having your details published in your local newspaper.
You could well struggle when applying for credit or opening a bank account.
There are careers that exclude people who are bankrupt, or even those who were once bankrupt.
4. Do I have other options besides bankruptcy?
You could well find that you have a number of alternatives. An IVA can write off a large portion of your unaffordable debt. You just make one reduced monthly repayment, typically over a 60 month period.
A Debt Management Plan can allow you to pay back your debt at a level you can realistically afford by reducing your monthly debt repayments.
For more details, contact Harrington Brooks. We can give you advice on all of the options that are open to you.
5. What exactly is bankruptcy?
Individuals who cannot meet their financial commitments, or whose liabilities exceed their assets, may apply to Court to be declared bankrupt. Also, a creditor who is owed in excess of £ 750 can petition for a person's bankruptcy.
Those who have assets which can be released for the benefit of their creditors are assigned a trustee. The trustee's job is to sell the assets and distribute the funds amongst the creditors. When the process has started, creditors can't make any further claims against you.
6. How does bankruptcy work?
In order to file for bankruptcy, you'll need to file a Bankruptcy Petition, or Debtor's Petition. Your creditors can also file for a Bankruptcy Petition, a Creditor's Petition, if they are owed more than £ 750.
When the bankruptcy petition has been filed, you will receive a court date for an initial hearing in order to decide whether a Bankruptcy Order should be made. The Court will declare you bankrupt if they deem it to be appropriate.
7. Where do they make the bankruptcy order?
The Bankruptcy Order will be issued by the same court where the Bankruptcy Petition was filed. This tends to be your local County Court but could be at the High Court.
8. What are the effects of bankruptcy?
- The nominated Trustee takes control of all of your assets, including your home.
- You cannot obtain credit in excess of £ 500 without having to disclose that you are bankrupt.
- You must conduct all business under the same name as you were made bankrupt.
- Without the express permission of the court, you cannot be in any way involved in forming, managing or promoting a company.
- You are prevented from holding some public offices if you are, or have been bankrupt.
9. Can I get reliable advice from Harrington Brooks?
Yes. Harrington Brooks specialise in all areas of financial solutions, including bankruptcy. Give us a call us and speak to one of our advisors who has extensive experience in dealing with a multitude of debt problems. We can advise you on the full range of debt solutions and help you make the right comparisons.
10. Is declaring myself bankrupt the right decision for me?
You could well find that another debt solution, an IVA for example, is more appropriate to your circumstances. Our initial advice won't cost you anything but it could help you decide which option is best suited to your current financial situation.
Declaring yourself bankrupt is a huge step and the decision should not be taken lightly. There are other options available to you. Just call one of our advisors now and they will discuss your current financial situation with you and help you to find solutions to take steps to resolving your debt problem.
11. Can I make someone else bankrupt?
If someone owes you more than £ 750 you can put in a petition to bankrupt them. Your first step should be to consult a solicitor; this will ensure the procedure is properly followed. Of course, solicitors will charge for this service so get references and quotes before making any appointment.
12. Can I keep my bank account?
There are no rules against a bankrupt individual having a bank account. Anyone who's been declared bankrupt should inform their bank about the change in their circumstances as they may add some conditions of usage to the operation of your account. Of course, there's no way that you should be requesting any lending or overdraft facility when in this situation.
13. If I'm bankrupt, can I still work?
You can still be self-employed or be employed if you are declared bankrupt. You must simply follow the rules imposed by bankruptcy legislation and inform any lender that you are bankrupt before trying to obtain credit of over £500. If your salary exceeds your household expenditure, the Official Receiver may request an Income Payments Order (IPO).
14. How long does the bankruptcy term last?
Since the 1st of April 2004, bankruptcy terms usually last one year from the date that the Bankruptcy Order took effect.
15. What's an annulment of a bankruptcy order?
An annulment of a Bankruptcy Order is the process by which a court can overturn the bankruptcy order and return you to the point before the bankruptcy took effect, leaving no record on your credit history.
16. When can I apply for an annulment?
You can apply for an annulment at any time, providing you meet with the following criteria:
- The Bankruptcy Order should not have been taken because the processes and procedures were not followed correctly.
- You have cleared all of your bankruptcy debts, including associated costs and they have been guaranteed and approved by the Court.
- An Individual Voluntary Agreement has already been established to pay off a portion of your debt to your creditors.
17. What is a discharge from bankruptcy?
This is the procedure by which you are released from the constraints of bankruptcy and are absolved from the majority of your debt.
18. If I am declared bankrupt, do I still have to pay off my student loan?
As of the 1st of September 2004, your student loan cannot be included in your bankruptcy. You will have to maintain payments in accordance with its terms and conditions.
If you were declared bankrupt before this date, you could still have to arrange repayment. Your Official Receiver will be able to clarify this for you.
19. Can I petition for bankruptcy in the UK if I live abroad?
Yes. If you live in an EU state, apart from Denmark, you can make yourself bankrupt in the UK. In order to qualify for this, you must demonstrate to the Court that your chief concern is in the UK.
