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Avoiding bankruptcy
Avoiding a Bankruptcy Order (Special Product)
The individual facing a potential bankruptcy order following a creditors or Revenue and Customs petition is in a precarious situation requiring immediate, appropriate action.
Why?
On presentation of a bankruptcy petition the court will usually hear the case within fourteen days of the application. The outcome could be one of several, the worst decision being a bankruptcy order. If the petitioner is the Revenue, the odds are stacked very much in their favour; the various taxes acts see to that.
What can be done?
The answer is quite simple; pay the demand!
Many respondents have money tied up in residential property which could be used to satisfy creditors/ tax demands. You could simply raise money by re-mortgaging or applying for a secured loan?
No you can’t. This action is likely to be fatally flawed and could cost you your home and much more.
Why?
When a bankruptcy petition is presented to the court, the court service notifies the Land Charges Dept and applies for the petition to be registered in the charges register. One effect this has is that subsequent disposals/ dealing connected with the land are likely to be void, unless a court has consented to the dealings. Therefore if a re-mortgage is applied for, all may go smoothly until the final stages. However, when the solicitor acting for the lender does the obligatory bankruptcy search prior to drawdown of the funds, the pending action will surface and the offer of advance will be withdrawn due to fact that the lender cannot secure its charge.
At this stage it is likely that the applicant is out of time with regards to
the bankruptcy action.
Unfortunately, it’s a catch 22 situation. You want to pay the creditors/taxman;
however you are unable to access your money because the petition has been
registered to protect your assets for the potential benefit of the interested
parties that you are attempting to pay!
However, if you really serious about avoiding a Bankruptcy Order; call us at the first stage of the legal process; the service of the Statutory Demand. This is a formal document stating the amount of money owed. Normally this will be delivered to you by hand. Three weeks has to elapse before the creditor/Revenue and Customs may proceed to present a bankruptcy petition.
Buy yourself some time, call us now!
Solution, contact us immediately. We have access
to a specially designed facility to help people avoid bankruptcy by raising the
required finance. Call us today on 0800 316 5756 for more information.
The overall cost for comparison is 7.9% APR The actual rate available will depend upon your circumstances. Ask for a personalised illustration.