New online application process for bankruptcy

National_Debtline

Hi all


Below is the very latest Insolvency Service bulletin which clarifies new bankruptcy fee arrangements.
Introduction of online applications for bankruptcy

Insolvency Service sent this bulletin at 22-02-2016 02:32 PM GMT
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[FONT=arial,helvetica,sans-serif]Statutory instruments enabling a new, online route for applications by individuals seeking to declare themselves bankrupt were laid in Parliament today.[/FONT]
[FONT=arial,helvetica,sans-serif] [/FONT]
[FONT=arial,helvetica,sans-serif]From 6 April 2016, debtor bankruptcy petitions will no longer be made to the courts; instead, applications will be submitted online via the central UK Government website, GOV.UK, to an adjudicator within the Insolvency Service. Liz Thomas, a deputy director at the Insolvency Service, has been appointed as the Adjudicator.[/FONT]
[FONT=arial,helvetica,sans-serif] [/FONT]
[FONT=arial,helvetica,sans-serif]The fee to submit an online application for bankruptcy will be £130 (the current fee is £180). Applicants, or someone on their behalf, will be able to pay online or in cash and will also be able to pay in instalments (online only), something which is not currently possible. With the required deposit remaining at £525, this will mean the total amount required to apply for bankruptcy will fall to £655 (previously £705).[/FONT]
[FONT=arial,helvetica,sans-serif] [/FONT]
[FONT=arial,helvetica,sans-serif]Online applications will not affect the current bankruptcy process subsequent to the granting of an order, which will remain unchanged. [/FONT]






Dennis
@natdebtline

fatbelly

Thanks Dennis

So the court fee of £180 gets replaced by an application fee of £130.

The OR deposit stays at £525.

There is no remission (I assume) for any of this.

All the monies can be paid online, by instalments. Credit card, or debit card only?

It's now definite that if you're on a means tested benefit it's cheaper to go bankrupt before 6 April. If you don't qualify for remission,, it's cheaper to wait.

fatbelly

Newsletter from the Insolvency Service

http://content.govdelivery.com/accounts/UKIS/bulletins/13a133b

Doesn't tell us anything we don't already know

DorisTrousers

So, unlike DRO's, the option to pay by cash, at a payzone or Post Office doesn't exist? Or have I missed something, as post #12 does mention cash?

Retrograde step I reckon.

fermi

Online Debt Solutions (ODS) online service. Guidance for debt advisers

https://www.gov.uk/government/publications/online-debt-solutions-ods-online-service-guidance-for-debt-advisers

fatbelly

fermi wrote: »

Online Debt Solutions (ODS) online service. Guidance for debt advisers

https://www.gov.uk/government/publications/online-debt-solutions-ods-online-service-guidance-for-debt-advisers

I think that's what we've been waiting for. Most advisers will not be aware of this (unless they are following this thread) - this is the first time I've been pointed to this document and I subscribe to CAB (and I think IS) updates. The new system goes live in 6 days and I've been trying to advise people and other advisers about this without having proper information.

What we were waiting for was the payment detail and here it is:

Applicants can pay the bankruptcy fee:
 online by debit, credit and prepaid cards by logging into their application and selecting the ‘Make a payment’ button
 by cash at any Royal Bank of Scotland branch

Third parties can also make payments on the applicant’s behalf via either of these methods. We won’t be accepting cheque payments from applicants or from third parties.

To arrange a third party payment, the applicant needs to first obtain a payment reference number by:
1. signing into their application
2. selecting the ‘Make a payment’ button
3. clicking the ‘Have someone else make a payment on my behalf’ link at the bottom of the page

Each applicant’s payment reference number begins with the letters ‘ADJ’ and is linked to that individual’s application. It can be used multiple times by multiple individuals looking to make third party payments.

Once they have their payment reference number, the applicant simply needs to give the payment reference number to the third party and ask them to visit: https://apply-for-bankruptcy.service.gov.uk/third-party-payment.

Paying by instalments is available for all those paying the fee online. The minimum online payment amount is £5 and can be paid in as many instalments as needed.

Paying by instalments isn’t available for cash payments. Instead the applicant or third party must pay the full £655 fee in a single payment by visiting their local Royal Bank of Scotland branch. More information about making cash payments can be found in appendix 1 or by logging into an application, selecting ‘Make a payment’, and clicking the ‘I can’t pay by card’ link at the bottom of the page.

Information about our refund policy can be found in appendix 2 or by logging into an application, selecting ‘Make a payment’, and clicking the ‘Refund policy’ link on the right hand side of the page.

DorisTrousers

I got the above 2 days ago and have only just read through it all.

Whilst BR costs will be higher for a good number of people who need help most, the ability to pay in installments, and the abolition of the court process are two positive steps, which should lead more people than previously to the right debt solution.

What is really interesting is that the adjudicator will be using SFS as a basis for affordability calculations. It is to be assumed that DRO's (which use CFS currently) will soon follow suit. This is a real positive, potentially at least, for debtors as any IPA asked for should theoretically be more reasonable (or even zero) than was previously the case. It is to be hoped that IVA's will follow the same path, which would surely help that side of the debt industry as assumedly less will fail because of unaffordability.

debt_doctor

Has anyone actually seen the 'Trigger Figures' within the SFS? Are they as generous as the CFS? If not (and the consultation led me to believe they are not as generous) then seems strange to not fall in line with the DRO application.
Also, the guidance says that the SFS will be used to help decide whether the bankruptcy will be approved - surplus income never decided approval or acceptance at court - it was "I am unable to pay my debts" - a very basic insolvency test along with advice having being sought and implications understood.
Is the SFS used to calculate IPA's? - are there still IPA's (I should think so!)
All will become clear - soonish!
DD

DorisTrousers

My understanding on SFS, and I sat on a working party on it at MAS in June last year, is that "trigger figures" are likely to be similar to CFS, if not, by now at least, a little higher. It will have 2 forms, a short version, and an expanded one where all the categories are broken down, if that is necessary for any reason.

It is a subtle point easily missed in the new guidance that SFS will be used to "assist" the adjudicator in deciding whether to grant the BR or not and DD is correct in that a surplus never used to be a consideration one way or the other. Maybe it is badly worded, then again, maybe a surplus that could be utilised to facilitate other debt solutions, e.g. IVA or DMP will be a reason for the adjudicator to refuse. The problem ther of course is that if SFS isn't then subsequently used for affordability on a DMP or IVA then any payment to those solutions will be much higher, which is clearly to consumer detriment. This is really why we need to have one set of guidelines only, and if it upsets organisations that use their own then that's just tough.

Of course, I may just be reading far too much into it, and the adjudicator may never refuse a BR on surplus grounds at all. It is indeed wait and see time.

fermi

http://debtcamel.co.uk/complete-bankruptcy-application/