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Identifying The Best Way Forward
The first port of call when considering regaining control and depressurising your financial situation. This is where you come to an informal agreement with specific creditors over outstanding debts owed to them. This could take the form of rescheduling payments over an agreed period of time – perhaps longer than the creditor would ideally prefer, but this way you can afford them and they get paid.
The disadvantage to an informal agreement is that it is not legally binding. The creditor can withdraw from it at any time and commence formal proceedings against you and your estate to recoup the debt. Also, whilst you are undergoing the terms of this agreement, it does not prevent another creditor seeking recompense against your estate for monies owed.
The advantage is where you have a limited number of creditors who, through the informal arrangement, can see direct benefit from taking part: for example, they get paid (eventually) in full – whereas with a formal voluntary arrangement this is not always the case.
At Augusta Kent, we have extensive experience in advising clients throughout these negotiations. We will be able to assist, where required, in developing solutions along this route, if it is an appropriate solution that best meets your interests in the short and long term. Contact us for your free initial consultation today.
This is one of the insolvency solutions that may be suitable for you and your personal financial circumstances. It is a formal insolvency procedure in which your licensed insolvency practitioner reviews your individual financial circumstances and draws up a proposal, which is then put to your creditors. It details a schedule of repayment for a certain percentage of the debt owed to them, over a period of time. Once agreed, you and your creditors are bound by the terms of the agreement.
This gives you breathing space, protects your assets and prevents any bankruptcy or further legal proceedings being started against you by your creditors.
On completion of the arrangement, the remaining percentage of debt will be written off – allowing you to have a fresh start.
If you have creditors in joint names with another person (your spouse or partner) then you may wish to consider an interlocking voluntary arrangement.
It is important that you use a fully licensed insolvency practitioner to help you assess your financial position and investigate the best route forward for you. At Augusta Kent, we have extensive experience of these and other informal and formal insolvency solutions.
This is one of the insolvency solutions that may be suitable for you and your personal financial circumstances. This formal insolvency procedure draws a line under all recent financial pressures, enabling you to make a true fresh start. It can be brought about in two ways: you can declare yourself bankrupt, or a creditor (to whom you owe over £750) can apply to the court to make you bankrupt. The Official Receiver is initially appointed as the Trustee of your bankruptcy but he or a majority of your creditors may appoint an independent Insolvency Practitioner subsequently.
Whichever the route, bankruptcy should not be taken lightly. There are many ways in which it impacts your personal and financial affairs. For example being made bankrupt includes (but is not restricted to) the following considerations:
- It will severely affect your credit rating;
- You could lose your home if there is equity in it;
- You will not be able to act as a director of a company;
- You will have to attend an interview with local Official Receiver (a government official) to assess the reasons for your bankruptcy and declare any assets you may have; and
- You may still have to agree to pay any excess disposable income towards your creditors for three years.
However, it will draw a line under recent financial pressures and it will not necessarily impact any mortgage arrangements, should you or your spouse be able to keep up with the repayments.
At Augusta Kent, we have substantial experience of advising individuals under these financial pressures.
In some cases we can intervene on your behalf during the bankruptcy process to either seek alternative solutions for you and your creditors or annul the bankruptcy order once made – if circumstances allow.
Rest assured that, through our experience, if an alternative is available and it is in your best interests, then a strategy can be devised that best suits your own personal circumstances.
Take control again and contact us for your free initial consultation.