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For many people, bankruptcy and insolvency
can be very grey areas. As an experienced licensed insolvency
practice, we aim to make sure that you are clear of the options
which are available to you and ensure that you make the right
choices to improve your circumstances in what can be a very
distressing time.
It can often
help situations to have an impartial mediator such as ourselves
to negotiate with your creditors and we have experience in
dealing with creditors such as the Banks, the Inland Revenue
and HM Customs and Excise.
Below are a
list of choices an individual or a business could make if
they have built up personal or business debts. If you would
like further details on any of these or wish to discuss our
Business Recovery solutions then please contact David
Kirk by
email
or telephone.
All initial
consultations are free and, of course, confidential.
Personal
Debts Business
Debts
If you are employed or self-employed
and have built up debts in your own name, there are 3 options
available to you:
1) Renegotiate payment
This may only be suitable if you would be able to set aside
surplus income from future earning to make regular payments.
Although some creditors may agree to restructuring of debt
and/or a freezing of interest payments, others, such as the
Inland Revenue will not, and will only give you 6 months to
repay the debt in full.
2) Voluntary Arrangement
A voluntary arrangement is normally made where you are unable
to repay a debt in full, either now or in the future or just
need some time to pay in full. Every agreement made with your
creditors is normally a bespoke one and one is which the use
of a licenced Insolvency Practitioner as a mediator is an
important factor.
3) Bankruptcy
This should be considered if you have little or no surplus
income, and do not have a house or professional qualification
to protect. However this is a very good way of getting a fresh
start.
If you are a sole trader, partnership or limited company,
the options are:
1) Voluntary arrangement
Although each situation is unique, this is typically more
suitable when your business or home is at risk and you are
simply looking for more time to pay your debts.
In most cases, interest payments are frozen and you may only
be required to pay back part of the debt.
These arrangements, once approved, are legally binding on
all of your creditors and can last for between six months
and 5 years. As licenced Insolvency Practitioners, we are
able to assist with the implementation of a Company Voluntary
Arrangement and ensure that the process is a quick and cost-efficient
one.
2) Bankruptcy / Liquidation
The decision of whether or not to file for bankruptcy or go
into liquidation can be a very difficult one. To a certain
extent it is dependant upon whether you or not you have a
good core business and want to continue trading. Filing for
bankruptcy or liquidation would ultimately mean the business
ceasing to trade and any assets remaining being sold to repay
creditors.
As licenced
Insolvency Practitioners, we are able to provide you with
a sensitive, professional and specific service to help decide
which solution is right for you and your business.
Email David
Kirk for further information and help.
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