We at CBA understand the difficulties which individuals are faced with when confronted with an ailing business or personal loans/credit cards. The processes involved in personal insolvency Leicester are relatively easy but the emotional impact can be very traumatic.

We offer a free consultation to help you see the bigger picture and discuss the options that suit your personal circumstances. In general there are three main options, outlined below.

Informal Arrangement

You can consider writing to all your creditors to see if a mutually acceptable agreement can be made regarding payments. It is advisable to include a timetable of when payments are to be made.

Debt management is a form of informal arrangement where a debt management company deal with your creditors on your behalf, negotiating repayments and their own fees which you will have to pay.

Individual Voluntary Arrangements (IVA)

An IVA is basically a contract between the individual and his/her creditors to repay a given sum over a period of time. An IVA is a legally binding arrangement managed by an insolvency practitioner, over a fixed period of time, usually 60 months.

The decision to implement the IVA is taken at a creditors meeting, organised by an insolvency practitioner. As long as the creditors voting (in person or by proxy) in favour of an IVA represent 75% by value the arrangement is legally binding on all creditors.

For individuals running their own business an IVA can give you time to consolidate your position and spread payments over a period of time so that the business can continue trading and hopefully return to profit.

Bankruptcy

Bankruptcy should always be seen as the last resort in solving any debt issues. The consequences of becoming bankrupt can mean you lose your house, prevent you from pursuing certain careers and, for example, prevent you from becoming a company director for a period of time. Having said that, the severity and stigma of bankruptcy has lessened over time and it is now far more acceptable than it used to be.

Individuals running their own business can petition the courts to wind up the business in otherwords they can go bankrupt. The term bankruptcy can only apply to individuals.

Free Advice

If you find yourself in a difficult financial situation take advantage of our knowledge and experience and call us for a free consultation.