When faced with serious financial difficulties, the debtor may have various options suggested to him by friends, family or other colleagues in whom he may have confided. Or it may be that his bank manager, one or more of his creditors or his business colleagues suggest what he should do, again assuming that they are aware of his financial circumstances. As in any important decision making process, it’s best to avoid plumping for what might seem an attractive solution at first and the well-meaning but sometimes erroneous advice of friends or colleagues. Continue reading
Back in 2012 we noticed a significant swing away from bankruptcies and towards Individual Voluntary Arrangements or IVAs. It is interesting to look at what has been happening since then and particularly whether that trend has been sustained. The short answer is that it has and the numbers of individuals choosing bankruptcy continues to decline sharply.Continue reading
Major changes have been announced in the Insolvency regime in England and Wales so as to make access to a Debt Relief Order much easier for people struggling with debt, particularly a certain category of insolvent debtors who were caught in a dilemma whereby they did not qualify for a Debt Relief Order and neither could they afford to pay the costs of bankruptcy. Hence the contradictory term: ‘too poor to go bankrupt’. Continue reading
If you find yourself deep in debt, there are seven main options which you can consider to address your predicament. In England, Wales and Northern Ireland, about 98% of people who decide to do something about their personal debt problems opt for one of these seven courses of action. Which solution appeals to you? Which solution are you eligible to go for? See if your circumstances match any of them.
The old cliché ‘fail to prepare, prepare to fail’ can be applied to your personal circumstances when you are encountering financial difficulties. You may be considering going to a financial expert to get advice on what your options are in trying to address your problems. The recognized expert in the UK is an Insolvency Practitioner or IP and the equivalent in Ireland is a Personal Insolvency Practitioner or PIP. Continue reading
If you are a homeowner and cannot afford to repay your debts, your property may be at risk. The people who lent money to you will want to get their money back in full and on time. Continue reading
When someone is threatened with insolvency or if they are already insolvent the focus on what to do next is often governed by best self interest. And this is not a bad thing. It usually leads to the right decision for the debtor and will often be the best course of action for the other parties affected, particularly creditors.
Where a bankrupt person is not complying with the requirements of the bankruptcy laws the Official Receiver or the trustee may apply to the court for the suspension of the running period of his or her automatic discharge from bankruptcy. Should the court grant the application, it means that the bankrupt will not be automatically discharged from bankruptcy after twelve months, but will continue to be an undischarged bankrupt for a longer period of time.
Some people when in Bankruptcy will try and abuse the insolvency system or engage in dishonest, reckless or otherwise culpable conduct. To protect against that the Enterprise Act 2002 introduced Bankruptcy Restrictions Orders and Bankruptcy Restrictions Undertakings. The effect of either a Bankruptcy Restrictions Order or a Bankruptcy Restrictions Undertaking is that the restrictions imposed on the bankrupt individual continue to apply, even after the (usual) twelve months discharge period has expired. Continue reading