Debt Assistance
If you are in a position where you are unable to repay all or some of your debts you have become insolvent. This is a common situation and there are a number of options available to you. If part of your debts involve mortgage repayments and you are facing court action, repossession or eviction then you should consider our "Quick Property Buying Service"
If you are insolvent there are also a number of other ways in which you can proceed:

• You can declare yourself bankrupt
• You can wait for one or more of your creditors to make petition for your bankruptcy
• You can, with the assistance of a licensed insolvency practitioner, make a proposal to your creditors in settlement of their debts. This is called an Individual Voluntary Arrangement

Individual Voluntary Arrangements
Individual Voluntary Arrangements (IVAs) were introduced by the Insolvency Act 1986 as an alternative rescue procedure for individuals to formal bankruptcy.

The purpose of IVA's is to provide a better alternative for both creditors and debtors, which allows the debtor to settle their debts under agreed terms and conditions which are binding on all creditors and affords a degree of court protection and control. It is still possible to propose an IVA to your creditors even after a bankruptcy petition has been granted, although this is obviously more complicated. The advantages of IVA s are that:

• Debtors maintain more control over their affairs since the IVA is not publicly advertised
• Creditors avoid the duties, expenses and fees due in bankruptcy

IVAs are a very useful and constructive way to achieve a better deal for both creditors and the debtor.

They do, however, require a very strong commitment from the debtor. It is by no means an easy option, but can be of great benefit to all.

The process
A set of proposals is drawn up by the debtor although in practice this is usually done with the assistance of a chosen nominee, who must be a licensed insolvency practitioner.

An application is made to the appropriate court for an Interim Order. If granted, this puts a hold on all financial proceeding for a limited time in order that a meeting of creditors can be held. The nominee makes a report to court and once the Interim Order has been made, a meeting of creditors is called.

All creditors must be notified and can attend the meeting in person or by proxy to vote whether to accept the proposals. Assuming the creditors vote in favour (75% of those voting), the scheme can be put in place and a supervisor (always a licensed insolvency practitioner and usually the nominee) will oversee its implementation. Debtors simply have to comply with their own proposals.

Bankruptcies
Bankruptcy is another way for an individual to deal with debts he cannot pay. Bankruptcy proceedings assist a debtor facing overwhelming debts in order that they may make a fresh start, subject to some restrictions, and ensure that the individual's assets are distributed fairly amongst creditors.

The process
A court makes a bankruptcy order only after a bankruptcy petition has been presented. A petition for bankruptcy can be presented by an individual debtor, creditor(s), supervisor of a voluntary arrangement or the official receiver petitioning in criminal proceedings. A supervisor of a voluntary arrangement can only petition on the failure of the voluntary arrangement.

Once the bankruptcy order has been made it is advertised in the 'London Gazette' and in a local or national newspaper (or both). The affairs of the debtor are initially placed in the hands of the Official Receiver. He or she is then responsible for the disposal of the individual's assets and making distributions to creditors. Bankrupts will normally obtain their discharge after two or three years depending on the circumstances.

We have expertise in advising with debt relating to cash house sales – feel free to call to discuss with no obligation.