Insolvency Service Closes Down Debt Company

UK Bankruptcy Limited (UKB), which received most of its referrals from the IVA council, a company claiming to be an independent body monitoring the insolvency industry,has been ordered into liquidation following an Insolvency Service(IS) investigation.  The investigation concluded that the company regularly charged excessive fees that bore no relation to the amount of work undertaken and that the advice they gave was often basic and available freely elsewhere.

It also found that not only where clients encouraged to use credit cards to pay the fees but that the level of fees charged often amounted to the available balance on the card, which meant that creditors where effectively funding the bankruptcy themselves.

Chief executive of The insolvency Service, Stephen Speed, said “At a time when finances are so tight for so many people it is regrettable that a business like UK Bankruptcy Limited should use dishonest practices to exploit the demand for debt advice for its own financial gain”. MrSpeed went on to support the work of the impartial charitable organisations in the debt advice industry “I hope the action we have taken will serve as an important reminder to anyone in debt; good quality advice is freely available from charitable organisations.”