APPLY BANKRUPTCY…

Many individuals find themselves in difficult financial situations and rather than investigate their debt options they simply opt to Apply Bankruptcy. When facing financial hardship it is imperative that you explore your financial situation in depth and it is advisable to do this with a debt solution professional.

The text supplied in this site has been provided by insolvency practitioners, Robson Scott Associates and has been done so to offer alternatives to those ready to Apply Bankruptcy. Alternatives come in the form of consolidation loans, debt management plans and the government backed IVA’s.

Bankruptcy

When you Apply Bankruptcy your financial affairs are administered by an official receiver or Trustee appointed at the creditors meeting. In other words when you Apply Bankruptcy, a Trustee controls all that you own including your house and other valuable assets which can be used to clear debts with your creditors .

You should only Apply Bankruptcy after you have fully reviewed and assessed your financial situation with debt solution professionals. After you Apply Bankruptcy you will set in motion a chain of events which operate outside of your control. Some of which will have a negative impact on your situation. These are detailed on the right hand side in our Apply Bankruptcy chart.

Before you Apply Bankruptcy consider all your options

It is advisable before you Apply Bankruptcy to speak with debt recovery specialists who can advise you on alternatives to Bankruptcy. There are numerous alternatives to be considered one of which is an IVA.

An IVA is an alternative to bankruptcy and was introduced in the insolvency act 1986. It allows an individual who has debts usually over £15,000 to make a proposal to their unsecured creditors to reach an affordable monthly settlement. If approved the IVA becomes legally binding and a payment schedule is put in place between the borrower and the lenders. This is usually arranged on a monthly basis over a five year term.

Qualifying for an IVA is relatively straight forward. It is usually based around three core elements.

1) You have a minimum of £15,000 debt
2) You are in debt to a minimum of three different companies
3) You are in regular full time employment

If you can match these criteria then you may be entitled to apply for an IVA and have up to 75% of your debt written off along with benefiting from all the other key benefits of an IVA. Before you Apply Bankruptcy it is advisable to consider an IVA as an alternative solution if it is deemed fit for your particular case..

* (Individual Voluntary Arrangement)

What is the difference between bankruptcy and an IVA?
Fundamentally they are both financial tools designed to help resolve difficult financial situations. Outside of this similar characteristic they are both critically different.

When you Apply Bankruptcy an application is made to the court to be discharged or rid of your debts. That comes with a price however. The price paid is both a substantial amount of up-front court fees that will need to be paid, loss of control of your assets and the reality that you will have been made bankrupt, a situation that can significantly impact your future credit file, ability to get credit and some jobs. This is why it is always advised to seek professional debt advice prior to simply opting to Apply Bankruptcy.

IVA, or Individual Voluntary Arrangement, on the other hand is an incredibly effective way to eliminate debt problems, without the pain and stigma of bankruptcy. The IVA allows debtors to come to a binding agreement with their creditors, reduce the total amount owed, make affordable monthly payments, maintain control of homes and other property, and does not impact job status.

All that being said, bankruptcy is an appropriate solution in situations where the debtor is unable to afford to make reasonable reduced monthly payments. Sometimes bankruptcy is the best tool to use and should not be discounted simply because it is bankruptcy. It be recommended to Apply Bankruptcy after your situation has been reviewed as this may be the best solution to your financial situation.

The best solution could be any of the following:

Debt Management, Consolidation Loan, Re-mortgage, an Individual Voluntary Arrangement,  or sometimes Bankruptcy may be the best solution.  At all times, we aim to provide clients with confidential and FREE advice to assist them through the stress of debt problems.  We will always endeavour to give our reasoning behind whichever of the above solutions would be best suited to the client.

Ways in which we can help include:-

Stop interest and late payment charges, Reduce your debt, Stop creditor harassment, Set up one affordable monthly payment, Protect your home, Be Free of Debt within five years.

Free debt advice:

For a confidential debt advice service,handled by dedicated debt solution professionals, please complete the simple referral form opposite. A debt advisor will call you at a time to suit you and fully asses your financial circumstances. They will then assist you in finding the best solution for your situation.