Written by John Kruse, one of the leading experts on Bailiff Law, this consumer friendly guide is essential reading for anyone who comes into contact with a bailiff.
The book is easy to understand and clearly explains the rights
a bailiff has, and also what they cannot do when collecting debts and repossessing goods etc.
Am going to be made redundant soon, and will probably be on benefits for a while.
I was repossessed 2 years ago, and have just received a demand from the mortgage company for £64,000.00.
Also have outstanding debts for electricity and countil tax.
I presume that as the house has been repossessed allready, my debt is now "unsecured" and therefore Bankruptcy seems the obvious answer, as I have no assets to speak off, and am likely to have no income other than benefits in the foreseeable future.
Am just looking into it at the moment, and trying to get a clear idea of what options there are, and which is the best route to take.
Hi there, based on your circumstances, bankruptcy does seem a good option for you. As you have no assets of a high value, you would not lose anything by doing this. The £64K from the property repossession would be unsecured, so this would be written off in bankruptcy, and you would be debt free after 12 months.
Also, as you are on benefits at the moment, you will not have to pay the full bankruptcy fee, you can claim some of this back.
Have been led to believe that the council tax is eliminated for debts up to date of the bankruptcy order.
This is correct. And all other utility bills, gas, electricity, water, etc.
If you decide to go BR, stop paying everybody ASAP. You will need those funds.
Would happily pay the council tax and electricity anyway, it is the £64000.00 that the mortgage company wants, that has led me to consider bankruptcy.
The mortgage Co can pursue you for 12 years for the debt, and add interest for 6 years. You have a perfect opportunity to eliminate this worry, and in your circumstances be discharged from bankruptcy in as early as 6 months.
Am going to be made redundant soon, and will probably be on benefits for a while.
I was repossessed 2 years ago, and have just received a demand from the mortgage company for £64,000.00.
Also have outstanding debts for electricity and countil tax.
I presume that as the house has been repossessed allready, my debt is now "unsecured" and therefore Bankruptcy seems the obvious answer, as I have no assets to speak off, and am likely to have no income other than benefits in the foreseeable future.
Am just looking into it at the moment, and trying to get a clear idea of what options there are, and which is the best route to take.
Hi Victor
As Looby says bankruptcy sounds like it could be the option / solution.
However before you make any decisions make sure you take independent full in depth advice on all your options / solutions including bankruptcy (and timing of). Especially taking into account any redundancy payments / pay in leu / holiday pay you may be receive or be due.
Council Tax arrears are a provable debt in bankruptcy however there can be issues if it has reached the stage where bailiffs are involved.
If the council tax gets to bailiff stage, the liability order will become void from the date of the BR.
not really true im afraid, see the OR's technical manual
9.11B Local authorities – timing of distress in bankruptcy proceedings (November 2008)
The right of local authorities to distrain for unpaid council tax and non-domestic rates (pre and post bankruptcy order) is exercisable at any time, including after the bankruptcy order and even against property comprised in the bankrupt's estate, in accordance with section 347(8) and (9) of the Insolvency Act 1986. The only exceptions being where an application for an interim order, under section 253 of the Insolvency Act 1986 is pending, whereby the court may forbid the levying of distress under section 254(1)(b) of the Insolvency Act 1986. Additionally, where an interim order has been made under section 252 of the Insolvency Act 1986, leave of court must be obtained before distress is levied (see paragraph 9.37).
it is an aboration that sticks out as contrary to the general principles but is accurate. In practice some councils will voluntarily write of the debt so worth sending them a copy of the bankruptcy order anyway
Bankruptcy Question
soon, and will probably be on benefits for a while.
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Re: Bankruptcy Question
Originally Posted by victortebbit
