Personal Insolvency
We are experienced in dealing with personal insolvency issues and will be happy to explain to you what happens in bankruptcy and also the alternatives used to avoid bankruptcy, such as an IVA.
We understand that personal insolvency will likely have an effect on your family and your home – so we will advise you on all of the issues you are facing. If you wish, we are happy to explain our advice to your partner or family so that they also understand what is happening and how our solutions will work.
The options available to individuals facing financial difficulties are:
Individual Voluntary Arrangement (“IVA”)
If you are concerned that you will be made bankrupt, you may avoid bankruptcy by dealing with your debts through an IVA.
An IVA is an agreement between you and your unsecured creditors which is supervised by us. You pay us a fixed amount each month over a period, usually between three and five years, and at the end we will pay that accumulated sum over to the creditors. The balance of the debts still owed is then written off.
We can also assist with short-term IVAs if you do not have any disposable income each month, but you are instead able to make a one-off payment to creditors, such as from a sale or remortgage of a house, or a family member helping out financially. This type of IVA usually only last between six and twelve months and again, any unpaid balance owed is written off at the end.
Importantly, an IVA cannot be used to deal with mortgage arrears or secured personal loans.
As each IVA is tailored specifically to your circumstances, please contact us for further details.
Bankruptcy
We advise on how to declare yourself bankrupt at your local Court and if necessary assist you on completing the required forms. Alternatively we can advise you on what to do if one of your creditors is attempting to make you bankrupt.
We understand bankruptcy is daunting for people, therefore we ensure that you understand all of the issues that have to be dealt with, especially the important issue such as how the family home is dealt with.
Debt Relief Order
This is a formal procedure similar to bankruptcy. It is, in affect, a “mini-bankruptcy” designed for people with few assets and few debts, as a way to deal with their debts without going through the full, expensive bankruptcy procedure. We will advise on whether you are eligible for this scheme and guide you through the process.
Informal Solutions
We can assist in informal negotiations with your creditors if you wish to avoid all formal insolvency procedures.
If you wish to discuss a Debt Management Plan (“DMP”), we will advise you how these work and the implications of them and, if a DMP is appropriate for you, we will introduce you to a DMP provider who is licensed by the Consumer Credit Service and abides by the Office of Fair Trading DMP operating standards.
We can also advise on the implications of selling or remortgaging your home to settle debts, including equity release and sale and rent-back agreements. We work closely with Independent Financial Advisors who understand personal insolvency and who will advise on these issues in more detail. We work with lenders who are willing to lend to people with lower credit ratings and also who are in bankruptcy or an IVA.
Please contact us on the telephone number above to discuss your personal situation. All calls are without any obligation and kept strictly confidential.