Bankruptcy Information UK
Welcome to www.bankruptcy.co.uk Established 1998 We have been helping people with complex personal and commercial debt problems. We believe that we are different to other debt solution businesses as we offer a firm but understanding approach to the most complex of circumstances opposed to other organisations whose primary focus is to sell you into a debt management plan or IVA Individual voluntary arrangement.
Our experience tells us that when we receive a call from someone looking for more help or assistance, then we have to firstly get a snap shot of what is going on in the background in order that we can quickly obtain an accurate view of who you are and what it is that is creating the problem. We know and understand only too well the way that debt problems can make a person feel and we will seek to get onto the same page as you within the first few minutes of an initial conversation. Ultimately you need to know and understand that we can provide you with the level of assistance required. It is also crucial that you feel that your circumstances are understood by whoever you are speaking to.
After we have confirmed your contact details then the initial primary focus is to understand:
1. What you have got going on around you
2. Examine the options that are feasibly available to you
3. Identify the trigger points as to how you have ended up in the position that you are in.
4. See if there is any chances or claiming any monies back from creditors or loan providers where you may have a legitimate claim for mis sold mortgage or PPI that may have been applied to any loans or credit facilities that yo have ever taken out on the past.
2013 has been a year of speaking to people that have absolutely no idea that there was/is monies available to claim back. These monies are often substantial and make the bottom line look very different. Although it is not always possible for a claim to be looked at as a solution. It is certainly an option that has to be considered.
The options are as follows:
Do Nothing- Wait and see what happens, knowing that if you take this option the situation may simply go away, or something could happen to change the landscape of your debt situation, such as a windfall or additional household income.
Personal Bankruptcy- This option should be considered first of all in our opinion with higher debt values. If you have no assets to speak of, and you have a job or career that will not be affected by a bankruptcy order, and you cannot see any opportunities coming up that are likely to enable you to manage your debts, then a bankruptcy could be a good option for you. Especially for all those people that have struggled with a debt management plan or individual voluntary arrangement.
IVA (individual Voluntary Arrangement) These are much better than they used to be. The reality is today that if you have a minimum debt level of £7k plus and a disposable income of £80 a month then you are able to apply for an IVA. An IVA is a legal agreement between you and your creditors, put together by a licensed Insolvency Practitioner or Chartered Accountant that practices in insolvency. Your creditors are made an offer which is based on your income abilities to repay an amount of money over a 5 year period. Providing 75% of the total amount of debt agrees to the proposal being made then the remaining 25% are committed to agree to the arrangement. These arrangements usually run over a 5 year period. It is fair to say that you can look at an IVA like an interest free loan payable monthly over 5 years. The only problem is that if your income increases or you have any changes to your circumstances then you will have to pay more into the arrangement. We often find that an IVA can be used to get creditors under control and all standing in line. Once this has taken place it is quite feasible for a debtor to make an offer to creditors which is equivalent in fiscal value by a 3rd party who will make a one off payment to clear the IVA.
Debt management Plans- These are very effective in signalling to your creditors that you are in difficulty. The Debt Management provider will contact all of your creditors requesting that interest is frozen on the accounts and for our creditors to be made aware that something has happened but you have taken action to do your best to manage your debts. The debt management plan is not recorded anywhere. Unlike an IVA which is a legal agreement, stamped by the court and recorded on the insolvency register. This last for 5 years. In our modest opinion we would say that a Debt Management Plan is a good short term solution which doesn’t affect any assets that you have such as a car of finance or a property that you own. It is a good way of managing creditors until you are in a position to apply something a little more solid. A lot of homeowners choose a Debt Management plan over an IVA purely because they will not be restricted from selling a property, unlike a bankruptcy or IVA where you will need authority from their legal department to sell.
So these are the options apart from specialist negotiation which is often required when the trust has been breached between creditor and debtor. Sometimes a creditor can apply hostile approaches towards a debtor simply because they are fed up with trying to deal with them.
We can assist in matters like this but costs will apply and you will need to complete the 3rd Party authority in which you will be enabling an officer of www.bankruptcy.co.uk to speak on your behalf.