Vincent Bond

I've only been with Vincent Bond a short time, but in that time I can only praise the fantastic work of Karrie. She is sympathetic without being condescending and is extremely punctual in getting back to me. She has always kept me informed of my case by either telephone, email or text, which is really handy. Every payment date I get an email to state that's funds have been received. I have no hesitation in recommending this company based on Karries dedication and hardwork.

What is Bankruptcy?

Bankruptcy is normally seen as a last resort after all other options for repaying debt have been exhausted. If you are declared bankrupt, you will no longer have to repay your creditors yourself and the court will protect you from any further legal action from your creditors.
However there are consequences which may mean that an alternative solution should be considered, depending on your situation. It is important to understand how a Bankruptcy would effect you before proceeding.

Advantages
Disadvantages
Fees
Key Facts

The responsibility for paying your debts is taken away from you by the Court, so you will no longer deal with your creditors.
Once you have completed your bankruptcy (usually 12 months) any remaining debt you have will be written off. There are some exceptions - see the Disadvantages section.
Any monthly payments you are asked to make are affordable and help you keep to a budget.Interest and charges are often frozen though this is not guaranteed.
You will normally be able to keep reasonable personal items and household goods.
Stress relief - Your creditors will no longer contact you by phone or letter.

Any assets you have can be sold to generate money for your creditors. This includes your home, other properties, your car and anything else of significant value.
You may have to make monthly payments towards your debt for 3 years.
The record of your bankruptcy remains on your credit file for 6 years.
Your Bankruptcy will be advertised in the London Gazette and will be recorded on the insolvency register which is a publically accessible list.
Being declared Bankrupt has an effect on certain professions. Not only could this effect your current job, but it could also prevent you from entering certain professions in future.
Some debts will not be written off by Bankruptcy such as student loans, debts due to fraud, child maintenance arrears, tax credit overpayments and secured debts.

When you declare bankruptcy, you will have to pay a fee. The fee is generally £700/person made up of a Court Fee of £175 and a fee towards the cost of the administration of your bankruptcy of £525. If you claim certain benefits such as income support, you may be exempt from the Court Fee. When you are speaking to the Court, you should confirm the exact charge and if you are eligible to apply for a discount.

If you feel that it is very unlikely that you will ever be able to save up the court fee, there is another option called a Debt Relief Order (DRO). You can read about this in our ‘Other Options’ section.

We can help:

Vincent Bond provides an assist service for bankruptcy giving you comprehensive advice and support both before and after your bankruptcy as well as completing all the forms for you. We will charge a fee for this which is £350 for a single application or £600 for a couple. This fee covers the preparation for court advice/support, arranging your court appointment, completion of all application forms and support in the preparation for the Official Receiver’s meeting, which will happen after you are declared Bankrupt.

It is important that you are aware of the following when taking on any debt solution:

All possible solutions should be considered to ensure you make an informed choice.
Fees will be charged if a solution is taken with Vincent Bond. This will be explained clearly in your consultation and agreement documents.
Stopping payments to your creditors may place you into further arrears.
It is likely that your ability to get credit will be affected.
As per the Consumer Credit Act you have a 14 day cooling off period in which to cancel your plan.

We will advise you on all of the above and help you understand the pros and cons of the solutions you have open to you. Click here to see our Terms and Conditions.

Step by Step Guide to Bankruptcy

Step 1 - Identify your local County Court and Tel Number

To declare bankruptcy, you will have to present your bankruptcy application documents (petition documents) in person at the County Court local to where you live. The local Court can be identified by searching on the Court Finder web site http://hmctscourtfinder.justice.gov.uk/HMCTS

Step 2 - Get an Application Form

Telephone your local County Court and confirm that you are considering bankruptcy. Check whether you are speaking to the correct Court location based on your home address. This is important as you must present your Petition for Bankruptcy at the County Court local to your place of residence.

You should then ask the Court to post you the necessary application forms for Bankruptcy and associated information. You will need two documents:

Bankruptcy Petition (doc 6.27)

Statement of Affairs (doc 6.28)

The Court will post blank copies of these documents to you free of charge. Alternatively, these forms can also be downloaded from the internet using the following website links:

http://www.bis.gov.uk/insolvency/About-us/forms/england-and-wales

Step 3 - Understand the Fees Payable

Step 4 - Confirm whether you need to book an Appointment at the Court

When you speak to the Court, you should ask whether you will need to make an appointment or whether they can just turn up at any time. Different County Courts have different procedures. If you need to book an appointment you may have to do so quite far in advance.

If you live in London and are planning to attend the High Court in the Strand, you will not need a prior appointment. You can just turn up on the day.

Step 5 - Complete your Bankruptcy Petition and Statement of Affairs Documents

The bankruptcy Statement of Affairs forms are 30 pages in length. They need to be completed fully and correctly. This will normally take between 2-3 hours. Once completed, you should make a photocopy of the forms for future reference. Normally there will not be any facilities at the Court for you to do this.

Note: If you feel comfortable that you can complete the forms yourself, there is no need to get the help of any 3rd party. However, if you do need help, you should expect to pay for this.

Step 6 - Present Your Completed Application Form at Court

Once you have completed your forms, you must take them, together with your Bankruptcy fee, in person to your local County Court. You should ensure that you arrive promptly for your appointment

Once at court the following will happen:
A Clerk of the Court will take your fee, ensure that your application forms are correctly completed and witness your signature on the Petition Document.

You will then meet privately with a District Judge. The Judge will ensure that you eligible for Bankruptcy (i.e. insolvent) and will determine whether bankruptcy is appropriate. If the Judge agrees with the Petition, they will declare you bankrupt the same day.

You will be asked to visit the Official Receiver. This will either be arranged for the same day or you will have to make an appointment at a future date.

Step 7 - Meeting the official receiver

Once you have been declared Bankrupt by the District Judge, you will then have to meet with the Official Receiver (OR). The OR will study your application forms in more detail. Based on this information, they are responsible for deciding decide how your Bankruptcy will be dealt with:

The Official Receiver will decide the following things:

How long the bankruptcy will last. This will normally be 12 months although the OR has discretion to shorten or lengthen this.
If you can afford to make a monthly payment towards your debt and if so how much (this is known as an Income Payment Order which will normally last 36 months).
If you have any assets or property, how these will be treated. I.e. if and when they will be sold to realise the asset value for the creditors

Step 8 - What to do if you have Property

If you declare bankruptcy and are a homeowner, the title and ownership to your property and your share of any equity in it will pass to the Official Receiver. If your share of the equity in your property is significant the OR will want to realise this either through the sale of the property or the receipt of equivalent funds from a third party.

If you have little or no equity in your property, your home will be valued again in 2 years and 3 months and any equity will be dealt with then. If there is no equity at that point then the property will revest back to you. The OR will have up to 3 years to deal with this.

It is important that you are aware of the following when taking on any debt solution with Vincent Bond & Co: All possible solutions should be considered to ensure you make an informed choice. Fees will be charged if a solution is taken. Stopping payments to your creditors may place you into further arrears. It is likely that your ability to get credit will be affected. In compliance with the Consumer Credit Act you have a 14 day cooling off period in which to cancel your plan. Calls to our free phone number may be charged from mobiles and other networks.