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)
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.
Insolvency advice can provide a confidential, fast and proven service in negotiating financial solutions for those in debt. Insolvency advice is available nationwide and insolvency advice has helped hundreds of people over the years through procedures such as Individual Voluntary Arrangements (IVAs).
Many creditors have dedicated insolvency advice departments dealing with debt collection and considering IVA proposals. Insolvency advisers have a long relationship with these departments and have a high success rate in agreeing significantly reduced repayment plans over a fixed term, with any remaining debt written off at the end of the Arrangement.
By obtaining insolvency advice with an IVA with us you will benefit in the following ways: - No up-front fees - No more stress - Just one affordable monthly payment - Full control of your finances - No more telephone calls demanding payment - No more threatening letters - All interest frozen and - A return to normality
There are no large up-front fees to pay as with some insolvency advice companies. Insolvency advice companies are licensed under the Consumer Credit Act 1974 to carry on all categories of credit hire business. Get also IVA, Debt management, bankruptcy-insolvency advice.We are also registered under the Data Protection Act 1998. Our qualified Insolvency Practitioners are licensed with the Insolvency Practitioners Association.
What is Bankruptcy? Bankruptcy is one way of dealing with debts that you cannot pay. Bankruptcy proceedings eventually free you from overwhelming debts, however any assets that you have may be sold and the proceeds shared amongst your creditors. Bankruptcy lasts for twelve months, after which time you can make a fresh start.
What are the effects of Bankruptcy? - You will have to report to the Official Receiver and provide him with details of your financial affairs - The Official Receiver will effectively own all your assets and look to realise their value for the benefit of creditors - You will usually have to close your bank account - You are unable to obtain credit exceeding £500 without disclosing your bankruptcy - The Bankruptcy Order is registered with credit reference agencies for at least six years - Your employment may be affected depending upon what job you do - You cannot be a company director or hold public office
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
This means that your creditors accept a reduced offer of repayment to settle their debt. By entering into an IVA, your total debt repayments – including costs – can be reduced by up to 40-60%!
Payments are usually made over five years, after which the remainder of your debt is written off. During the repayment period, all interest and charges are frozen and you will receive no more correspondence from your creditors.
- All interest and charges on your account are frozen. - Your account is administered by a fully qualified, licensed insolvency practitioner, who takes responsibility for liaising with your creditors and distributing funds on your behalf. - We can perform a confidential review of your circumstances to see whether you are eligible. - A legal process for UK residents (excluding Scotland) with a significant debt problem. - On agreement your creditors accept a reduced offer of repayment in full and final settlement of the debt. - Payments are normally made over a 5 year period, following which the remainder of your debt is written off. - Debt write off applies only where an Individual Voluntary Arrangement is suitable, adhered to and at the end of 60 months. This relates to unsecured debts that were included with an IVA and does not include any secured debts, mortgages, HP or utility bills. Failure to adhere to an IVA can result in bankruptcy. An IVA will affect your credit rating for up to 72 months after the completion of your IVA. - A Fee payable – this is paid out of your month contributions to your IVA and will be notified to you in advance - Homeowners may be required to re-mortgage after 3 years. - Alternative solutions such as debt management may be offered.
An Individual Voluntary Arrangement (IVA) is a formal agreement between you and your creditors where you will come to an arrangement with people you owe money to, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe then generally after 5 years your debt is classed as settled.
IVA Pros: - Creditors who vote against your proposal are still bound by it. - Creditors whose lending is unsecured can't take any further action. - Interest is usually frozen as long as you kee pup your payments. - Your insolvency practitioner will help you prepare your proposal, including agreeing the level of your household and personal spending based on guidelines acceptable to creditors. - Many insolvency practitioners will allow you to pay their fees for preparing your proposal monthly, as part of the IVA. - You make only a single payment each month or quarter. Your insolvency practitioner is responsible for administering and distributing your payments. - The terms of an IVA will usually enable you or your spouse or partner or a relative to make arrangements to buy your share of the net worth of your home or to make extra payments, rather than the home having to be sold. This may be done through a remortgage or a loan. (Net worth means its value after any debts secured on it have been paid.) - On completion of the IVA, the balance of what you owe your creditors is written off. - You may be able to continue running any business you have.
IVA Cons: Your IVA is entered on a public register. - The insolvency practitioner may require payment in advance for preparing your proposal and getting your creditors' agreement. - If there is some equity (value) in your home after taking account of the mortgage(s) on it, you will probably have to pay for your share, usually in the fifth year of your IVA, by remortgaging the property. If you can't get a remortgage, you may have to continue making monthly or quarterly payments from your income, for up to another year. - If your circumstances change, and your practitioner can't get creditors to accept amended terms, the IVA is likely to fail. You will then still owe your creditors the full amount of what you owed them at the start, less whatever has been paid to them under your IVA. - If your IVA fails, you may be made bankrupt.
The Insolvency Act 1986 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.
The Insolvency Act 1986 essentially governs issues relating to personal bankruptcy and Individual Voluntary Arrangements and all administrative orders relating to company insolvency.
The Insolvency Act 1986 is an important piece of legislation that cover the IVA procedure. An individual voluntary arrangement (IVA) is a legally-binding agreement that allows you to repay your creditors by making a reduced monthly payment at an amount you can afford. This usually lasts five or six years, and at the end of this time your remaining debt is written off. You make one affordable payment to us each month and we distribute it fairly amongst your creditors. During your IVA creditors are not allowed to contact you or increase your debt in any way.
The Contents of the Insolvency Act 1986 - Part I - Company Individual Voluntary Arrangements -Part II - Administration Orders - Part III - Receivership (ss 22-72H) - Chapter I - Receivers and Managers (England and Wales) - Chapter II - Receivers (Scotland) - Chapter III - Receivers Powers in Great Britain as a whole - Part IV - Winding Up of Companies Registered Under the Companies Acts (ss 73-219) - Chapter I - Preliminary - Chapter II - Voluntary Winding Up (Introductory and General) - Chapter III - Members Voluntary Winding Up (ss 91-96) - Chapter IV - Creditor' Voluntary Winding Up (ss 97-106) - Chapter V - Provisions Applying to both kinds of Winding up - Chapter VI - Winding Up by the Court (ss 117-162) - Chapter VII - Liquidators - Chapter VIII - Provisions of general application in winding up - Chapter IX - Dissolution of companies after winding up - Chapter X - Malpractice before and during Liquidation; Penalisation of companies and company officers; Investigations and prosecutions (ss 206-219) - Part V - Winding Up Unregistered Companies (ss 220-229) - Part VI - Miscellaneous Provisions applying to Companies which are Insolvent or in Liquidation - Part VII - Interpretation for first group of parts - Insolvency of Individuals - Bankruptcy - Part VIII - Individual Voluntary Arrangements IVA - Part IX - Bankruptcy (ss 264-371) - Chapter I - Bankruptcy Petitions - Bankruptcy Orders - Chapter II - Protection of Bankrupt's Estate and Investigation of his Affairs - Chapter III - Trustees in Bankruptcy - Chapter IV - Administration by Trustee - Chapter V - Effect of Bankruptcy on certain rights, transactions etc. - Chapter VI - Bankruptcy Offences - Chapter VII - Powers of Court in Bankruptcy - Part X - Individual Insolvency: General Provisions - Part XI - Interpretation for second group of parts -Miscellaneous matters - Part XII - Preferential debts in company and individual insolvency - Part XIII - Insolvency Practitioners and their qualifications (ss 338-398) - Part XIV - Public Administration (ss 399-410) - Part XV - Subordinate Legislation - Part XVI - Provisions against debt avoidance (England and Wales Only) - Part XVII - Miscellaneous and General - Part XVIII - Interpretation - Part XIX - Final Provisions - Schedules - Schedule B1, on the new administration procedure after the Enterprise Act 2002
If you're struggling with debt call the Debt Helpline, no matter how bad the situation seems there's plenty of free advice available to help you with your debt solutions.
Almost everyone owes money, bills are a fact of life. But sometimes you may find you're swamped with debts and can't see a way of paying them all, call the Debt Helpline. The worst thing you can do is to ignore the problem it won't just go away.
If you're thinking about taking out cash from your credit card or even a single loan as debt consolidation to pay off all your existing debts, make sure you're not simply taking on more debt. Check that the terms of the loan interest rates and length of the loan. Be very careful about taking out a loan secured on your house as it will put your home at risk get debt advice.
If you know you can't pay all your debts, its important to prioritise your debts and to write to your creditors to see if you can agree on a repayment timetable. Those people who are already struggling with unmanageable debt should seek advice from an insolvency helpline as soon as they can to find out what options are available and how they can get their finances back on track and start fresh.
Many people are struggling with debts at present, and if you're one of them, you should get the right support as soon as possible. Seeking early expert advice combined with determination can avoid closure. Insolvency – also known as bankruptcy – is a complicated topic that is best addressed by a technical specialist rather than standard certified accountants. Accessing timely expert advice is vital. With the right advice, organisations exploring insolvency may not be in danger of mounting liabilities and could have a number of options other than closure available.
If you are experiencing the following, it may be time to seek specialist advice: - Mounting debts - Less cash flow - Rising income gaps - Worries that you cannot keep doing more with less
Accessing the right advice provided at the right time could have a substantial impact on your future. So if you are not sure if insolvency applies to your organisation, please ask now by calling an insolvency helpline.