People face financial difficulty for many reasons. Some situations may be resolved informally and for smaller debt, say under £20,000, we suggest contacting a reputable debt management provider or the Citizens Advice Bureau.
An informal arrangement that allows repayments to be substantially reduced and changed to a single monthly payment. Usually suited to temporary financial problems.
For larger debt and where there are assets to protect an IVA can be the answer. A Proposal is put to creditors and key features can include significant debt write-off, protection of assets and a single regular payment.
Partnerships can benefit from administration, voluntary arrangements and liquidation procedures in a similar way to companies.
Bankruptcy can be a realistic option but only after careful consideration. Bankruptcy is initiated by a petition to Court by the individual or creditor. The Official Receiver deals with the case and may seek the appointment of an Insolvency Practitioner to realise assets. A bankrupt is usually discharged after one year.
Similar to bankruptcy but a simplified procedure where there are no assets and less than £15,000 of debts.
Sometimes it is possible to come to an informal agreement with some or all creditors.