As part of The Enterprise and Regulatory Reform Act 2013 a new regime has been introduced for those wishing to apply for their own bankruptcy. Here are the main changes:
From 6th April, an individual wishing to apply for their own bankruptcy will no longer have to issue a petition, but will complete an application process through an online portal.
The courts will no longer be involved in the majority of applications by individuals for their own bankruptcy. Instead, applications will be determined by an adjudicator who can ask for more information from the debtor, undertake verification checks and must make a determination within 28 days, (there can be an extension of 14 days if further information is requested.) The adjudicator will either make or refuse a bankruptcy order and any failure to make a determination within the prescribed period will be deemed a refusal. There is an appeal process for such cases.
The fee for a bankruptcy application is £130, which is favourable when compared to the court fee for a debtor's bankruptcy petition of £180. A debtor wishing to make a bankruptcy application will still need to pay the official receiver's deposit of £525.
For more information, contact Neil Stewart - firstname.lastname@example.org
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Exploring how best to secure payment of the Court award
The Defendant was the sole owner of his property and we discovered there was one mortgage registered against it. Mortgage enquiries and a valuation showed there was over £300,000 of equity in the property.
Taking Court action to settle the debt
First we obtained a Final Charging Order. This means that the Judgment debt is registered and secured against the property as an equitable charge.
We then applied to the Court for an Order for Sale whereby the property would be sold and the proceeds of sale, following the discharge of the mortgage and other costs, would be used to settle the client’s claim.
Although the Defendant strenuously opposed the application, the Court granted an Order for Sale and ordered the Defendant to vacate the property. They refused to leave.
Full repayment of the debt
At this point the Bailiff was instructed to take possession of the property and the Defendant was evicted. It was then sold and we recovered full settlement of the debt and payment of legal costs for our client.
The balance of the proceeds of sale was paid to the Defendant.
Orders for Sale are granted at the discretion of the Court and the Court may be unwilling to make an Order for Sale if there are young children, elderly or disabled occupiers living in the property.
A building company