Personal insolvency advice for individuals
We offer pragmatic and sensitive personal insolvency advice. We work with individuals and their creditors in a practical and sympathetic way to find the most suitable outcome for all stakeholders.
Individual insolvency procedures
Bankruptcy
Bankruptcy should only be considered when you cannot pay your debts. Going bankrupt for the first time will generally mean that you will be discharged from your bankruptcy after 12 months and thereafter debt-free subject to some limitations.
While the government is involved in administering the initial stages of all bankruptcy cases, an independent trustee may be appointed to deal with your bankruptcy estate. A trustee sells all the bankrupt’s permitted assets (which may include your home if there is equity) and uses the money to pay as much as possible to your various creditors.
If you are facing a bankruptcy petition or have already been made bankrupt, we have the in-house expertise to offer you the most appropriate personal bankruptcy advice, providing you with the different options available. The most common alternative is an individual voluntary arrangement, although this may not be the right solution for everyone.
Individual voluntary arrangement (IVA)
An IVA is a legally binding arrangement supervised by an insolvency practitioner. The purpose is to enable an individual (the debtor) to reach a compromise with their creditors and avoid the consequences of bankruptcy.
The compromise should offer a larger repayment towards the creditor’s debt than could otherwise be expected were the debtor to be made bankrupt. This is often facilitated by the debtor making contributions to the arrangement from their income over a designated period or from a third-party contribution or other source that would not ordinarily be available to a trustee in bankruptcy.
Unlike the unregulated informal debt management products actively being marketed on radio and television, an IVA is legally binding and precludes all creditors notified and therefore included in the IVA from taking any enforcement action against the debtor post-agreement, assuming the debtor complies with the obligations in the IVA.
Who can benefit from an IVA?
An IVA is available to all individuals who are experiencing creditor pressure and used particularly by those who own their own property and wish to avoid the possibility of losing it in the event they are made bankrupt.
Contact us if you need personal insolvency advice.
