Bankrupcty Advisory Service - any experience?

LilyBart

Good morning everyone,

Spent yesterday making more ghastly phonecalls. Business Debtline struggled with a couple of (very) detailed questions about general business expenses versus reimbursed work expenses etc - OH and I have both and are both self-employed/sole traders - and they recommended the Bankruptcy Advisory Service.

Now, it costs £25 to join, in return for which they offer advice etc. I'm happy to swallow this, however I noticed in the glossary of terms on their website that they said undischarged bankrupts could keep cars worth only £500. Hmm...

My questions this morning are:

1. Has anyone here had good/bad experiences of dealing with the Bankruptcy Advisory Service? Would like to know in advance of parting with any money.

2. Top value of car is £1000, right? (Have commissioned car-literate friend to find a banger. Need to warn him of lower price if BAS are correct.)

Many thanks as ever
Lily

fermi

I've no experience with them, but I personally shy away from paying anyone for advice.

That figure of £500 is quoted completely out of context. The Official Receiver can declare a car of any value to be an "exempt asset".

But if they can declare it to be an "exempt asset", they do have a general guideline figure of £2,000 (plus sales costs) above which the official receiver will want to realise the value in the vehicle for the estate, and provide funds to purchase a cheaper replacement. Some people misunderstand this as a value under which a car will not be touched.

If the OR is not able to declare the car an "exempt asset" then they have a legal responsibility to deal with it . A car of any value (even a low figure) is still the OR's responsibility, even if it means scrapping it. They may deal with a low value car by offering it back to the bankrupt for a fair price taking into account that sale costs can be up to £500. I think that is where they have got their £500 figure from, but as I said they are using it in an incorrect and misleading context.

LilyBart

Thanks Fermi. That's exactly what stopped me from clicking on the "register" button. (That and them misspelling "annual".) If they don't make something like that 100% clear on their website, it doesn't bode too well for their ability to offer more detailed advice.
That said, it is tricky to know who to turn to for very specific self-employment advice when even BDL scratch their heads...

sparrabeth

Hi LilyBart,

Have you thought about calling CCCS? Not only do they have a dedicated Self-Employed team, they also have a Bankruptcy Support Service. I found them to be really helpful and I know there are many others on here that would say the same.

xxx

dodecanese

Or try the Insolvency Service enquiry line.

faeriequeen

Hi LilyBart
Both before and after going BR, I have considered subscribing to the Bankruptcy Advisory Service, after the details were given to me by National Debtline.
However, having read through their leaflet, the £25 fee quoted as a registration fee only gives you access, from what I can see, to basic services and advice, of the kind that is acquired from the Insolvency Website or the Bankruptcy Support team of the CCCS
Whilst the Service concerned advertises its ability to offer advice concerning Specialist Re-mortgage Companies post BR for example, or the ability to liaise with individual OR s regarding property matters, it is clear that any degree of liaison of the kind described carried out by the Bankruptcy Advisory Service, or any other complex matter requiring anything more than telephone advice basically,carries with it additional fee implications that would seem substantial.
I think the £25 fee is quite misleading really and, to my mind at least, doesn't offer more than what is already available from the other sources mentioned.
In terms of the potential benefits from specific business advice that the Service may or may not offer, I really have no idea, save to say that it would almost certainly come at a price. Perhaps you could telephone to clarify the support/advice that would be available to you, find out at what cost, and then decide on its potential usefulness to your specific situation.
Good luck

Cinderbrook

Steer clear of the BR Advisory Service. A friend of mine tried them as he was a sole trader - totally useless, not experienced enough to help.

LilyBart

Many thanks everyone. Very helpful. Had no idea CCCS had dedicated self-employed team. Will get on to them Monday. Dodacanese, I take it that the insolvency service call should be made anonymously?

peachyprice

LilyBart wrote: »

2. Top value of car is £1000, right? (Have commissioned car-literate friend to find a banger. Need to warn him of lower price if BAS are correct.)

Many thanks as ever
Lily

Not necessarily, we got to keep 2 cars, 1 worth £2250, other £2750. It really depend on the individual OR, and unfortunatley there's no way of telling which way it will go.

One thing I would say is that it seemed relevant to our OR that the cars were in good working order, with tax & MOT up to date. I know people here have had problems getting the OR to exempt bangers. Perhaps they see a banger as frequently needing money spent on them just to keep running?

fermi

peachyprice wrote: »

Not necessarily, we got to keep 2 cars, 1 worth £2250, other £2750. It really depend on the individual OR, and unfortunatley there's no way of telling which way it will go.

You did well with the one worth £2,750. Much more than that and they may have wanted it sold for a cheaper one.

Saying that, I think it was savagevixen who managed to keep a people carrier worth about £3,000 - 3,500. Although that was probably due to the hospital trips etc that were needed regularly for her kids (if I remember correctly).

As you say, there is a very large amount of discretion possible on what is claimed and what isn't if circumstances merit it.

dodecanese

Hi Lily
I called the Insolvency Service several times before I went bankrupt. CCCS recommended I did, due to property issues, as you are getting the info-literally-from the horses mouth. They have a general,centralised enquiry line for insolvency queries.
They dont ask for name/address,etc. They were helpful and answered all the questions I had. The number is 0845 602 9848.

Should also add, they dont give "advice" as such- its more factual information.