Bankruptcy / IVA

If you have debts that you're unable to pay, bankruptcy is a formal process available to you which ensures any assets you have are shared equally among those owed money. After the process, you can make a fresh start, subject to restrictions.

You, the debtor, can petition for your own bankruptcy. It is also possible for a creditor owed more than £5,000 to petition to make a debtor bankrupt.

Once a bankruptcy order is made, the debtor loses control of their assets and may be liable to pay over some of their income to cover debts. There are also restrictions on the amount of credit that can be obtained during the process and on the debtor's ability to act as a director of a company.

Alternative options
Bankruptcy may be a suitable solution for you, however there are alternatives. These include re-mortgaging, consolidation of debts or informal arrangements with creditors.

Other formal procedures include:
 
  • Individual voluntary arrangement (IVA) - usually last for around five years if based on contributions from income, and the terms must be agreed by three quarters of creditors who vote.
  • Debt relief order - available only to debtors with low levels of debt (less than £20,000), low levels of assets (less than £1,000 and low spare income (less than £50 per month)).
Call us now on 08000 833 943 to discuss how we can help you.