Personal Insolvency

Facing the Problem

Recognising that you have a debt problem is the first step to taking positive action and finding a solution.

You will find that talking through your financial problems with someone who can listen sympathetically and who can offer professional advice will lift a heavy burden and help you have a clear understanding of the options available. These options will include:

  1. Arranging an informal agreement with your creditors to repay outstanding debt over a longer period of time. This is likely to be suitable in only a small number of situations.
  2. Consolidating your debts, which on the face of it, appears to be a solution until you start to understand the burden of higher interest and other charges that you may be incurring.
  3. Putting forward a proposal to your creditors for an individual voluntary arrangement which, if approved by your creditors, binds creditors to an agreed repayment arrangement, almost always for an amount which is considerably less than the amount you actually owe them and with no accruing interest.
  1. Bankruptcy, which although has the advantage of wiping out your debts can have serious implications depending upon your circumstances. You need to clearly understand what the effects of bankruptcy will be before deciding on this option.

The options explained

Individual Voluntary Arrangement (IVA)

An IVA is a procedure whereby an insolvent individual comes to an agreement with their creditors in how their debts will be discharged. It is a less formal procedure and is extremely flexible.

In an IVA, creditors should benefit more than under bankruptcy proceedings. The arrangement if approved by the creditors is overseen by a licensed insolvency practitioner. It is binding on those creditors who had notice of, and were entitled to attend and vote at the meeting.

IVAs enable individuals to go about their daily business in a less restricted manner than under bankruptcy.

For personal insolvency advice contact Cranfield Business Recovery.

Bankruptcy

Bankruptcy is a way of dealing with debts you cannot pay off. Bankruptcy proceedings free you from overwhelming debts so that you can make a fresh start (subject to some restrictions). The proceedings also ensure your assets are shared out fairly amongst your creditors.

The purpose of the bankruptcy order is to appoint a responsible person who has a duty to collect the bankrupt’s assets and distribute them to his creditors in accordance with the law.

Anyone can go bankrupt, including individual members of a partnership. Different procedures apply so do take advice from a personal insolvency specialist.

Our Approach

At Cranfield Business Recovery we offer an initial free consultation to discuss your particular circumstances. At the conclusion of the consultation we will be a position to advise you on your immediate next steps. You will have a full understanding of the options available to you and will know which is best suited to your circumstances. We guarantee that anything discussed is completely confidential and you are under no obligation to take matters any further.