There are many reasons why people get into debt such as credit card or store card debt or even debt after a death in the family. Some callers have debt arising from divorce, separation or single parenthood. For this reason we provide dedicated advice on these situations.
Corporate voluntary Insolvency The circumstances of your company will determine which process is most suited to your requirements. It is imperative that the best course of action and process is taken to ensure the best outcome is achieved. Our insolvency practitioners can advise you further on: - Administration - Receivership - Company Voluntary Agreement (CVA) - Liquidation
Personal voluntary Insolvency It is important to note that each of the options below can adversely affect your credit rating. However, this should not necessarily be a factor in deciding which course of action is the most appropriate and our recovery and insolvency experts are here to guide you through the process and explain every step of the way. - Debt Management Plan (DMP) - Individual Voluntary Agreement (IVA) - Bankruptcy - Debt Relief Order (DRO)
Many people believe that bankruptcy and insolvency are the same thing but there a few differences between the two terms.
What is Insolvency? Insolvency is simply where you are unable to pay back your debts when the payment is requested and have no way of obtaining money. Unlike bankruptcy, insolvency is not a legal process and merely describes the debt and financial problems that have occurred. It is a term that is also often used in relation to a business that is in debt and cannot afford to keep going.
If you are insolvent then it is important to remember that you do not have to declare bankruptcy. These days there are a number of other methods for taking control of your finances and paying your debts. You should however make sure that you tackle your debts now whilst you have the chance before bankruptcy does become an issue.
What is Bankruptcy? Bankruptcy is a way of dealing with any debts that you may have if you are unable to pay them back. It is generally seen as the last resort as it will mean selling off any assets that you have and does come with a number of possible consequences to your career and your credit rating. Generally it will be your creditors that petition for your bankruptcy but you may also do this yourself if you wish.
It is important to remember that bankruptcy is not an easy way out as it can have some detrimental effects so you should keep this in mind if you are thinking of declaring yourself bankrupt. By being declared bankrupt you will mark your credit rating for around 6 years. This means that if you apply for credit you will most likely be declined or face high repayments.
You will not be able to keep your bankruptcy a secret and should expect the details to be listed in your local newspaper which can cause embarrassment. Any equity that you have in your home could be used by the Court to go towards your bankruptcy and there is a risk that you could lose your home.
Bankruptcy is a formal court procedure which you can start or which one or more of your creditors owed at least £750 can start. Your assets (with certain exceptions) are sold to help pay your creditors. However, you can usually keep your personal belongings, the contents of your home and your tools of trade (which may include your car) unless they have a high value. I search financial blog for advice and read on - Pros and Cons of an IVA.
If you have surplus income after meeting your essential household and personal expenses, you will have to make payments out of your income for up to 3 years.
Your assets and income are dealt with by a licensed and regulated insolvency practitioner or by a government official called the official receiver. Bankruptcy usually lasts for 1 year, and once you have been freed (discharged) from your bankruptcy, you are released from your debts (with certain exceptions).
• Debts are written off, with certain exceptions applying • Creditors can't take further action unless the debts are secured on your home or other property. • It allows you to make a fresh start after only a year. • You may be able to avoid having to sell your home if your spouse, partner or a relative can buy your share of its value after debts secured on it have been paid.
What is IVA debt advice? An Individual Voluntary Arrangement (IVA) is an agreement between you and your creditors whereby you make funds available for distribution between the creditors bound by the agreement. This usually involves making one monthly payment out of your income for a set period of time and, if you have any assets such as equity in your property, endowment policies etc you may have to make some of this available to creditors as well.
Can I apply for an IVA debt advice? If you are unable to pay your debts as they fall due you may apply for an IVA. This applies even if you have assets that, if sold, would cover your debts. If you are already subject to a Bankruptcy Order you may still apply. If the arrangement is approved, your Bankruptcy is annulled.
What are the benefits of IVA debt advice? - Interest and charges on your debts are frozen - Creditors stop ringing and writing to you - they contact the Supervisor of the IVA - An IVA gives you protection from creditors by way of a court order - Once your obligations under the IVA are fulfilled, your debts are then written off - You potentially avoid bankruptcy - Your credit rating is not as seriously affected as in bankruptcy - You can continue to trade
A Statutory Demand is a formal process under the Insolvency Act 1986 for the payment or other satisfaction of a debt that is owed by a debtor to a creditor.The Statutory Demand provide the debtor with a limited amount of time (18 days) to either pay or satisfy the debt or have it set aside by the court.
A statutory demand is a special type of written request from a creditor (someone who is owed money) for payment of a debt. The person or company that receives the demand has 21 days to settle the debt or 18 days to ask the court to set aside (dismiss) the demand. The creditor may present a petition to court for a: - bankruptcy order if after 21 days, a statutory demand claiming the debt which is equal to or exceeds £750; or - winding-up order if, after 21 days, a statutory demand claiming the debt exceeds £750 is not: - paid - secured (an agreement reached for payment), or - set aside
There is no expiry period for a statutory demand. However, under the Limitation Act 1980, a debt must not be more than 6 years old or based on a default judgment more than 6 years old. This period can start to run again from any date the debtor agrees the debt exists and may be extended more than once. You may need legal advice if you think the debt is affected by this time limit.
If you do not deal with a statutory demand within 21 days of receiving it, the creditor will take this as proof that you are unable to pay the debt and can then make you bankrupt.
It is vital that you act quickly when you receive a Statutory Demand if you are to avoid the creditor bankrupting you or applying for a Winding up Petition.
In today's testing economic climate creditors are increasingly resorting to Statutory Demand more quickly than ever before.
Often the use of Statutory Demands is inappropriate and in many cases they can be set aside by the Court. This will prevent a creditor from taking any formal insolvency process against you.
You could try to set aside the statutory demand on one or more of the following grounds.
- You have a claim against the creditor which is equal to or more than the debt. - The debt is secured against property that is worth the same or more than the debt. (Your creditor does not have to accept an offer to secure the debt). - The whole debt or the unsecured part of the debt is below £750. - The debt is disputed and the court believes there are reasonable grounds for dispute.This might include where the creditor has waited too long to pursue the debt, or the debt is regulated under the Consumer Credit Act 1974 and there is no signed agreement. - You may be able to argue that you can apply for a time order under the Consumer Credit Act 1974 instead.
IVA, which stands for “Individual Voluntary Agreement”, has been recognized as a substitute of the bankruptcy.Though, you take an advantage of this effective alternative, you should have expert advice from a reliable person, who you can trust.
One question will suddenly arise in your mind, is expert advice really important in an IVA? Yes, it is an essential need before jumping into the action. There are some hazards that you definitely want to keep away from you. By getting a proper expert IVA advice you can get out of the circle of deceit. Let's look at some aspects regarding IVA to know why expert advices are important in the IVA.
Standard Terms Of IVA Under the conventional conditions of an IVA, the main advantage to your creditors is that they do indeed regain some of the money you owe them. In a standard bankruptcy, they wouldn't be able to. As you might have thought, a bankruptcy will do far more harm to your credit score than an IVA will, which is the main advantage from your viewpoint. Another way in which an IVA will advantage you is that it will lock up the interest rates on your loans.
The Typical procedure Once you've had some IVA guidance and made the decision that this is the path you'd like to take, the first thing is to sketch up a strategy on how to pay back your financial obligations. Aspect of this strategy will reveal your resources to your lenders so they can be sure the conditions of your strategy are completely reasonable.
How IVA Monthly Payments Works The IVA lowest payback level is £200 per month for a £15,000 debt. This transaction monthly increases if you have more than £15,000 to pay. The debts must also be from lowest 2 different creditors. In a simple way, the more you owe the more you pay.
Individual Situation An IVA is particularly valuable to individuals who own qualities that could be grabbed in the insufficient such a contract. At a point actually, there are some circumstances in which an IVA would be valuable even after you have declared bankruptcy.
The safest first step could deliver you the enhanced result for the future, because it is said that first impression is the last one. So for all the individual situations and scenario of the IVA it is essential to have expert IVA advices.ask your questions and get answers for IVA from experts.