Receivers that are official
I have written articles in the past regarding people who are in bankruptcy and are not aware of the process or what is occurring. I provide advice and assistance to many people in this situation on a daily basis and one of the fears that people have is of the interview with the Official Receiver in their bankruptcy.
Once you are made bankrupt by a judge, within a short period of time, perhaps a couple of weeks, you will be contacted by someone who has been appointed to be the Official Receiver in your bankruptcy. To make matters simple, basically their job is to review your bankruptcy forms, and see if you have any assets that can be liquidated to pay into the bankruptcy, such as property, or if you show a surplus of income each month that exceeds £100, to be used to pay into the bankruptcy. If you do show a surplus of income that exceeds £100, after allowable living expenditures, they may have you pay a percentage of this surplus into the bankruptcy for a three (3) year period. Even though your bankruptcy can be discharged in 12 months, you would still pay into the bankruptcy for an additional two (2) years.
The interview with the OR is usually done via the phone, however it may be in person. During the interview the OR may ask you a variety of questions as to how you found yourself in this situation, to questions about the accounts, any assets you may have, etc.
Whilst in bankruptcy, you are obligated to report any changes in your finances to the OR, and they have the full 12 months while you are bankrupt to issue an income payment order or arrangement.
I received many queries from people related to the Official Receiver and what powers or authority they have. I have previously covered some of these powers in other articles, but will give a general overview here again. The OR can reverse transactions made prior to going bankrupt, such as the transfer of property or paying someone. They also can look at property or assets in another country as well.
This information is from the Insolvency Service’s web site:
Any asset in any part of the world would be classed as an asset in a bankruptcy in England and Wales. There is now widespread co-operation in many countries in the world between courts exercising jurisdiction in relation to insolvency, including all EU countries. This means that the OR or trustee in bankruptcy would be able to sell property abroad that is owned by the bankrupt.
Any asset in any part of the world falls into your bankruptcy estate. However, the Trustee may encounter problems selling foreign assets if he is not ‘recognised’ in a foreign jurisdiction as having the power to sell them. The Trustee may require cooperation from you, and also he may need to apply for a court order in the foreign country to deal with the asset.
So as you can see, the OR’s powers and authorities can be far reaching.
But one of the questions I am also asked is how to handle the interview. I usually advise people to be themselves, as who else would they be? I tell them to relax, answer the questions directly and to the best of their ability. If they do not know the answer, then simply state so. If the OR needs additional information and you do not have it or cannot provide it, they can obtain it from other sources.
One thing to keep in mind is that if you feel the OR is being unfair, or being unreasonable in what their expectations are, such as what you will pay into the bankruptcy or what they are asking as an equity figure from a property, you can negotiate these matters. It may be best to have some professional assistance and consultation by contacting Myvesta.
If all else fails, you can file a complaint at www.insolvency.gov.uk
Once you are made bankrupt by a judge, within a short period of time, perhaps a couple of weeks, you will be contacted by someone who has been appointed to be the Official Receiver in your bankruptcy. To make matters simple, basically their job is to review your bankruptcy forms, and see if you have any assets that can be liquidated to pay into the bankruptcy, such as property, or if you show a surplus of income each month that exceeds £100, to be used to pay into the bankruptcy. If you do show a surplus of income that exceeds £100, after allowable living expenditures, they may have you pay a percentage of this surplus into the bankruptcy for a three (3) year period. Even though your bankruptcy can be discharged in 12 months, you would still pay into the bankruptcy for an additional two (2) years.
The interview with the OR is usually done via the phone, however it may be in person. During the interview the OR may ask you a variety of questions as to how you found yourself in this situation, to questions about the accounts, any assets you may have, etc.
Whilst in bankruptcy, you are obligated to report any changes in your finances to the OR, and they have the full 12 months while you are bankrupt to issue an income payment order or arrangement.
I received many queries from people related to the Official Receiver and what powers or authority they have. I have previously covered some of these powers in other articles, but will give a general overview here again. The OR can reverse transactions made prior to going bankrupt, such as the transfer of property or paying someone. They also can look at property or assets in another country as well.
This information is from the Insolvency Service’s web site:
Any asset in any part of the world would be classed as an asset in a bankruptcy in England and Wales. There is now widespread co-operation in many countries in the world between courts exercising jurisdiction in relation to insolvency, including all EU countries. This means that the OR or trustee in bankruptcy would be able to sell property abroad that is owned by the bankrupt.
Any asset in any part of the world falls into your bankruptcy estate. However, the Trustee may encounter problems selling foreign assets if he is not ‘recognised’ in a foreign jurisdiction as having the power to sell them. The Trustee may require cooperation from you, and also he may need to apply for a court order in the foreign country to deal with the asset.
So as you can see, the OR’s powers and authorities can be far reaching.
But one of the questions I am also asked is how to handle the interview. I usually advise people to be themselves, as who else would they be? I tell them to relax, answer the questions directly and to the best of their ability. If they do not know the answer, then simply state so. If the OR needs additional information and you do not have it or cannot provide it, they can obtain it from other sources.
One thing to keep in mind is that if you feel the OR is being unfair, or being unreasonable in what their expectations are, such as what you will pay into the bankruptcy or what they are asking as an equity figure from a property, you can negotiate these matters. It may be best to have some professional assistance and consultation by contacting Myvesta.
If all else fails, you can file a complaint at www.insolvency.gov.uk
