Personal Debt
Your personal insolvency questions answered
Our free initial consultation allows us to answer all of your questions, it also allows us to get an overview of your situation and provide you with all the insolvency options, advice, help and support to identify what option might be the most appropriate to suit your particular circumstances.
IVA
An IVA is a binding agreement between a person and their creditors.
IVAs are very flexible. There are no restrictions on the level of debts or assets an individual can have when they enter into an IVA.
IVAs can be used to agree lots of different things: a partial write-off of debt, for example, or a change in the length of time over which debts are repaid.
Bankruptcy
Bankruptcy is a solution designed to help an insolvent person repay as much of what they owe as possible while writing off debts they cannot pay. In a bankruptcy, your assets pass into the control of a trustee who may sell these assets to raise money to repay your creditors. The trustee will either be a government official (the Official Receiver) or a licensed insolvency practitioner.
During a bankruptcy, you will be subject to some restrictions for one year. Once the year is up, most people will be discharged from bankruptcy. Once you have entered bankruptcy, your creditors will not be able to take action against you in relation to debts that were owed prior to the start of the procedure. During a bankruptcy you will still need to keep up with ongoing commitments, like rent, mortgage payments, or bills, including new credit card or utility bills.
