Not necessarily. However, if there is equity in your house then this will need to be dealt with accordingly. An individual voluntary arrangement (‘IVA’) can allow you to keep your house in certain circumstances. However, if you are unable to pay your creditors in full by other means, it is likely that you, possibly via a third party, will be required to make a payment to your creditors in lieu of the value of your share of any equity in your house. Click here for further information.

Not necessarily. In bankruptcy, it depends on the value of the assets. Household possessions of reasonable value can be retained as well as motor vehicles of modest value. In an IVA, the retention of assets is open to negotiation with your creditors. In an IVA there is a good chance that creditors would allow you to retain a vehicle of reasonable value, particularly if you need it to earn a living or in other special circumstances. Click here for further information.

In most cases yes. Since 29 May 2000 pension assets have been protected from claims by a trustee in bankruptcy. One exception to this is if excessive pension contributions have been made either before or during the period of financial difficulties. Regular pension income, for example, if you are already drawing an annuity, may be subject to an income payments order. Click here for further information.

The main consequences of bankruptcy are as follows:

• Your credit rating will be affected for many years.
• You will be an undischarged bankrupt for 12 months unless you have previously been bankrupt or the Official Receiver obtains a bankruptcy restriction order against you due to inappropriate conduct.
• You lose control of your assets as these automatically transfer to (‘vest in’) your trustee.
• Bankruptcy can delay home and car repossession and some property loss is possible.

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A debt relief order (‘DRO’) provides relief from debt, subject to some exceptions. A DRO is like a mini bankruptcy. A DRO lasts for 12 months, during which creditors named in it cannot take any action to recover their money without permission from the court. At the end of the 12 months, you will be freed from all debts included in your DRO if your circumstances have not changed. Click here for further information.

Company debt and personal debt are separate entities that don’t directly affect each other unless a personal guarantee is involved. If a personal guarantee has been provided by a director for a company debt then there can be a scenario where that business debt can have an impact on your personal finances.

Widely used by individuals seeking to avoid the stigma attached to bankruptcy, an individual voluntary arrangement (‘IVA’) is a formal agreement between a person owing money (‘debtor’) and their creditors, under which the debtor undertakes to make certain payments or realise certain assets, or both, in full and final settlement of their debts via an IVA. Click here for further information.

An individual voluntary arrangement (‘IVA’) is a means to avoid bankruptcy and can allow you to retain certain assets. The main consequences of an IVA are as follows:

• Your unsecured creditors cannot legally pursue you for the debts.
• You will not automatically lose control of your assets.
• An IVA may postpone or avoid the sale of the family home.
• An IVA will not necessarily prevent you from practising in certain professions.
• It is easier for you to remain in business.

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A lot of people assume that bankruptcy is their only option when they can’t afford to pay their debts. However, an Individual Voluntary Arrangements (‘IVA’) can be a viable option for sole traders or individuals that are offering to repay their debts over a period of time, usually years. Whether you choose to apply for an IVA or bankruptcy, it is important to distinguish between the two and find an option that best suits you.

When creditors that are chasing you for payments this can be an incredibly stressful time. However, there are steps you can take to relieve that pressure to give you time to repay your personal debts. Firstly, talk to your creditors. Start a conversation with them about negotiating your debt into manageable sums over a period of time. If you still feel that your creditors are unfairly harassing you, speak to BRI Business Recovery and Insolvency to find out what other options are available to you.

A County Court Judgement (‘CCJ’), means a creditor of yours has applied for a court order to make you repay your debt. If you have received one, don’t ignore it and look at ways to try and pay it off so that the creditor doesn’t proceed to the next step by sending High Court Enforcement Officers (often referred to as bailiffs) to reclaim goods. If creditors have filed a CCJ against you and you are unable to pay, you should speak to one of the team at BRI Business Recovery and Insolvency as soon as possible. If you ignore a CCJ, it can drastically damage your credit file. Our experienced advisors will be able to advise you on the best course of action to take.

A partnership voluntary arrangement (‘PVA’) is a legal agreement made between business partners and their creditors. It’s a formal process that can be initiated when a partnership is facing insolvency or is no longer able to pay the debts that it owes to its creditors.

A PVA is a voluntary agreement. It gives partners an opportunity to restructure their business while retaining control of it. A PVA will halt interest and payment charges while setting down a required period of repayments that allows creditors to regain their losses and any money that is owed to them. Click here for further information.