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Glossary


Annulment & Discharge of Bankruptcy

We can attend to the application for annulment of your bankruptcy and discharge until it is completed and an order for annulment is granted.

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Bankruptcy advice, support and representation

We provide a full review of your financial affairs, advising of the likely outcome of bankruptcy, in doing so we provide a full service to support you and represent you at official meetings.

Advantages and Disadvantages of bankruptcy explained:


Advantages

  • Bankruptcy lasts 12 months to automatic discharge
  • Your employer need not know unless you work in a professional service capacity or are a Government Official or Company Director
  • Depending on the circumstances it is possible to obtain an early discharge within 6 months

Disadvantages

  • You may be publicly examined/interviewed in court
  • Loss of control over your assets
  • Your credit is affected for many years after the annulment
  • You cannot obtain credit over 500 without permission from the lender
  • You cannot trade in any business under any other name unless you inform all persons concerned within the bankruptcy
  • Certain occupations and professions will not allow you continue to work in the profession
  • You can no longer act a company director
  • You cannot practice as a Chartered Accountant/Lawyer
  • You cannot act as a Justice of the Peace (JP) or school governor or Member of Parliament
  • You cannot become a member of the local authority

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Clear my name from the credit files

We will clear your name from credit files, in order that you have a clean record.

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Clear county court judgements

We are able to clear county court judgements and remove details of such from the personal records.

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Court Representation

We will attend Court Hearings supporting you and act as your representative.

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Creditor mediation

We are able to attend to dealing with creditors of all shapes and form, even the aggressive creditors, where we have years of experience in handling such difficult matters. You will have no further need to communicate with them directly for we are able to negotiate on your behalf.

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Debt reduction and arbitration

Debt reduction and arbitration is a main strength of ours. We have managed on numerous occasions to mediate and agree debt settlements with creditors, which do not involve further formal involvement. Thereby avoiding potential additional legal costs and expenses and to satisfactory conclusion for all parties.

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Enterprise Act 2002

Changes to the law governing bankruptcy - A Second Chance

Rather than relay the whole of the Enterprise Act we will concentrate on the significant points.

The changes have been made to give those who have been made bankrupt for the first time and have genuine reasons or have been made unavoidably bankrupt a second chance to start again.

From 1st April 2004 most bankruptcies affected after this date will be discharged at 12 months. Previously discharge was usual at 2-3 years and of course the stigma of bankruptcy was much more harsh.

If bankrupt prior to 1st April 2004 and the expected term was to last beyond 1st April 2005, discharge should be made within 12 months from 1st April 2004.

If the bankruptcy was set to end in less than 12 months from 1st April 04, the bankruptcy will end at the date originally expected. Individuals who are made bankrupt for a second time after 1st April 04 will be discharged after 12 months, unless the trustee/Official Receiver decides to suspend the discharge or apply for a Bankruptcy Restriction Order.

Treatment of assets - the Enterprise Act has enforced a limit of 3 years in which a trustee in bankruptcy can deal with a bankrupt's interest in their home. After 3 years the interest no longer constitutes a part of the bankrupt's estate and the home reverts back to the bankrupt.

Individuals who have been bankrupt more than once in the prior 15 years and who still are un-discharged at the time of the Enterprise Act 2002 came into force, will be treated differently. If the court previously granted a discharge, the order will determine the date of discharge. If an order has not been granted, the bankrupt will be discharged on 1st April 09 (5 years) from 1st April 04 or by court order. Individuals made bankrupt under criminal bankruptcy will only be discharged by court order.

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Informal Voluntary Arrangements

An informal voluntary arrangement is an arrangement that does not involve court processes and formally appointed insolvency practitioners or solicitors to handle your financial affairs. It is purely an arrangement that creditors agree to on negotiation to eliminate expensive costs to your estate. Many creditors will accept this type of arrangement for the benefit to them, is also to avoid additional costs where they can.

We will negotiate and arbitrate on your behalf to help an informal arrangement become possible and thereby avoiding additional costs in that of a formal arrangement.

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Individual Voluntary Arrangement

If we feel that this procedure is most appropriate to your situation we will assess, guide and support you through the process to help you work with a recommended insolvency practitioner to manage the IVA and act on your behalf. We would hold necessary meetings with you to support you.

An individual voluntary arrangement 'IVA' is a formal process in which a licensed insolvency practitioner is appointed to handle the court processes and manage the voluntary arrangement on your behalf from the beginning to the end. It is usually formulated where there are many creditors and beyond your control and are requested to agree to a proposal for repayment of all or part of their debts owed by you. Creditors will often agree to the IVA as long as the outcome will be better than in a bankruptcy.

Once creditors agree the IVA, the recommended and appointed insolvency practitioner will deal with all creditors and liaise with you to satisfactory completion.


Seven Steps to an IVA

  1. Write a proposal to your creditors (people you owe money to).
  2. Gain an application to court to prevent creditors taking any further legal action against you.
  3. You immediately stop all payments to creditors apart from mortgage, leasing and hire purchase agreements.
  4. Arrange a meeting of creditors for a specific time and date to vote in accordance with the proposal.
  5. At the meeting of creditors - obtain creditors approval. If the proposal is accepted, it then becomes legally binding on all your unsecured creditors.
  6. You pay monthly payments or payments as 'agreed' within the proposal until the expiry date of the IVA.
  7. The IVA is completed once is reaches the end of its term. The completion papers are sent to court. The IVA is finished. You are free to control your financial affairs.

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Mortgage/re-mortgage assistance

We can assist with mortgage advice, and re-mortgage assistance following bankruptcy.

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Official Receiver - meetings representation

We will attend meetings with you to attend to questionnaires and interviews with the Official Receiver, to help alleviate any confusion or stress on you.

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Pensions and Endowment policies

We will review pension and endowment policies in order to advise and protect your financial position.

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Review of your financial affairs and advise solutions

In order for us to fully understand your financial situation, first and foremost we need to establish all your income and outgoings together with a full asset and liabilities list. We will then provide solutions to your individual situation.

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Review and repair credit references

We will attend to and repair your credit references

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Safeguard your home

We will review your financial affairs and protect your home where possible, when you thought that it was impossible. Note: In some instances this is not possible.

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Satisfactory Conclusion

Our aim is to take to the stress away from you, in order to offer a satisfactory solution to your financial affairs, to ultimately make your life enjoyable once again. We therefore work with you to cut out the confusion and fully explain your position to satisfactory completion of your financial affairs.

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Statutory Demand handling

We have the expertise to handle and negotiate with creditors who have been issued a Statutory Demand and we often have the demand set aside, once an agreed settlement has been made. Action must be taken within 21 days upon receipt of a Statutory Demand in order to avoid further legal action against you.

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Trustee - meetings representation and support

We will attend meetings and offer our support to guide you through any on-going process.

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"I needed someone to take all the stress away, I didn't know what my options were, I just felt this dark cloud over me that I could not see my way out of, PIB provided all the answers, I am so relieved."

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