Archive for September, 2009

On occasion, changed circumstances (e.g. divorce, unemployment, illness) will affect your ability to make payments. During such rocky times, notify your supervisor immediately. If your problem is temporary, the Supervisor may give some extra time in meeting your payment commitment. If it looks severe or long-lasting, the creditors may: modify the plan to deal with your changed circumstances; or discharge the rest of your debts on the basis of hardship; or convert to a bankruptcy case.

No. They may stall the repossession. It is vital to maintain payments on your home in order to avoid repossession. A bankrupt’s equity will fall into the bankruptcy however. Equally an IVA may provide that equity is liquidated for the benefit of creditors.

Charges do not automatically go away in bankruptcy; a bankruptcy discharge does not extinguish a charge on property.

A charge is a claim by your creditor against some continue

Yes. Typically many bankruptcy cases involve individual debtors having no assets to satisfy any portion of a creditor’s claims (called no-asset cases).

Generally, you might lose the following items of property: your principal home your second residence your second car stamp, coin and other collections and heirlooms share certificates and other securities deposits of money (e.g. bank accounts, escrow accounts, money market accounts) property you are entitled to receive at some future date (e.g. tax refunds) your part of marital estate.

Typical examples of property that you can keep: a car, if subject to finance and with little equity clothes household goods and furniture appliances your principal home, if and only if there is little or no equity personal effects jewellery professional tools income from social security, disability, public assistance, unemployment some pension funds, child support and maintenance.

Please note that in all of the above cases property can be retained where it is the subject of a Charge or is purchased on hire purchase (for example a car) and if there is no or little equity in the property. In addition, it should also be noted that if any of the above listed items are of particular value, for example valuable jewellery or furniture then they will properly fall into the bankruptcy.

In relation to matrimonial homes, it should be stressed that even if there is substantial equity in the property, the Trustee in bankruptcy cannot ordinarily repossess the property within one year of the making a Bankruptcy Order. This will not however prevent a charge holder (i.e. the mortgagee) commencing repossession proceedings. In many cases property will be co-owned by the debtor’s spouse. The Trustee in bankruptcy will ordinarily approach the debtor’s spouse in order to ask whether he or she wishes to purchase the interest of the debtor’s failing which, possession proceedings will ordinarily commence after the one year time limit as set out above. Neither the bankruptcy nor an IVA will prevent a lender from repossessing your home if it is subject to a mortgage charge.

During the course of the life of the interim Order, it is possible that the Courts will prevent repossession proceedings from continuing. An IVA may be a better way forward as it will provide a greater recovery for creditors than would have been the position in a bankruptcy. They will also usually make provision such that the mortgage lender is paid in full.

In the case of a bankruptcy, whilst you may be able to remain in possession of the matrimonial home for a minimum of one year, after that year has expired, possession proceedings are likely unless either there is no equity in the property or a third party such as a spouse could buy out the Trustee in Bankruptcy’s interest i.e. the debtor’s equity in the property. Following a discussion of the difference between a bankruptcy and IVA in relation to a matrimonial property is tape stops here.

The most common debts that you may get rid of are: back rent utility bills some court judgements credit and charge card bills loans from family and friends newspaper and magazine subscriptions legal, medical and accounting bills most unsecured loans (e.g. debts for which there is no collateral)

Parliament has determined that the following types of debts are not dischargeable for public policy reasons (e.g., the nature of the debt or the fact that the debts were incurred due to the debtor’s improper behaviour.)

Criminal government fines, penalties Family maintenance payments Child support Secured debts Gambling debts for last-minute purchases of luxury goods or services are also nondischargeable.

Another class of debts or claims (called charges) that are backed by property also survive.

Debts are divided into two categories: dischargeable and nondischargeable. Dischargeable debts are those that the debtor is no longer personally liable to pay after the bankruptcy proceedings are concluded. Nondischargeable debts are those that are not cancelled because of the bankruptcy proceeding. This means that you are still responsible for payment them.

A Discharge in bankruptcy means that you are no longer subject to the Bankruptcy Order. The creditor no longer has any right to collect debt. The debtor no longer has any obligation to repay it. The timing of the discharge varies, depending on the circumstances. (Normally 12 months)

Which type of procedure really depends on your financial picture. Each has pros and cons.

An individual struck with serious financial difficulties most likely will continue

An IVA is a statutory procedure for individuals or partnerships who are in financial difficulties and insolvent. The procedure is broadly the same for both individuals and partnerships. continue

There is a bankruptcy court for each judicial district in the country.

The Insolvency Rules 1986 (“the Rules”) govern the procedural aspects of the process.

The procedure begins with the filing of a Petition and a cheque in the sum of £450.00 (this comprises £150 Court Issue Fee and £300 for continue

Though many people petition for bankruptcy to deal with their debts, just as many shy away from bankruptcy and consider other solutions to straightening out their debt problem. There are a number of different strategies for handling debt. continue

This is a personal decision, greatly influenced by the amount of serious debt and your ability to meet the original payments or pay the full amount. Being hassled by creditors when you are broke is nerve-wracking for starters. Secondly, the decision to petition should not be made solely to stop demanding creditors. Though presenting a petition to Court temporarily stops creditors from engaging in out-and-out enforcement continue

1. Know who you’re dealing with. Do business only with companies that clearly provide their name, street address, and phone number.  

2. Protect your personal information. Only give out your credit card or other personal information when buy­ing from a company you know and trust.

3. Take your time. “Resist the urge to act on impulse.” Most if any offer, that’s good today will be good tomorrow, too.  

4. Rate the risks. Every potentially high-profit investment is a high-risk investment. That means you could lose your investment — all of it.  

5. Read the small print. Get all promises in writing and read all paperwork before making any payments or signing any contracts. Pay special attention to the small print.  

6. “Free” means free. Throw out any offer that says you have to pay to get a gift or a “free” gift. If some­thing is free or a gift, you don’t have to pay for it. End off.

7. Report fraud. If you think you’ve been a victim of fraud, report it. It’s one way to get even with a scam artist who cheated you. By reporting your complaint by dialling 999 you are providing important information to help the police track down scam artists and stop them!

A Business Disaster Need Not Be A Personal Disaster If You Select The Right Insolvency Practitioner

If there’s anything worse than facing business bankruptcy, it’s having to do so and then finding the wrong Insolvency Practitioner (IP) for the job. For many IP’s, business bankruptcy filings have become a volume business hence you will be just another battery when going through the production line, and debtors facing bankruptcy sometimes unfortunately obtain inferior legal services. For this reason, you’ll need to do some research before hiring an Insolvency Practitioner.

First of all let me point out for legal reasons the word business bankruptcy continue

For those who have little or no knowledge concerning the bankruptcy / Insolvency laws, then we would advise you of the need to look for a insolvency practitioner to help you understand your options. When You Meet With an Insolvency Practitioner There are many aspects of

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An Application is made to Court. The Court will then send out to the debtor a request to provide details of the debtor’s income and expenditure. The debtor will also be asked to make an offer of stage payments. continue

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