Insolvency
Bankruptcy
It is often the case that the best solution for insurmountable debt is personal bankruptcy. The law now provides that in most normal circumstances an individual bankrupt for the first time is automatically discharged from bankruptcy after only 12 months. In some cases it can be less! During that time you will be able to maintain a job and a bank account and such proportion of your income that is required to meet the reasonable needs of yourself and your family. Once your bankruptcy ends all of your debts (except for some specific ones such as secured debts, student loans and others) are gone.
It is likely that the number of bankruptcies during 2009 will mount quickly and therefore there should be no personal embarrassment or stigma attached to this solution. There are some restrictions on the activities you can undertake as a bankrupt however. Bankruptcy is not the only solution and so seeking the right advice at the right time is crucial.
Individual Voluntary Arrangements (IVA)
This is a process where you avoid bankruptcy by entering into an agreement with your unsecured creditors. A proposal is put to your creditors and if 75% of the value of debts owed vote in favour of the proposal then all of your unsecured debt is rolled into the arrangement. Normally you will then pay a monthly amount into your agreement usually for a period of 5 years and your creditors receive payment out of those sums. So long as you stick to the terms of the agreement once it comes to an end the debts will be satisfied in full notwithstanding the fact that you may not have actually paid 100% of what you owed. This solution also avoids bankruptcy and ensures your home is protected from any unsecured creditors.
Contact our Insolvency Team now to see how we can help.
Telephone 01246 560560
