What does Personal Bankruptcy in Accrington involve?
You may choose to apply for bankruptcy yourself, in which case you’ll have to formally ask (petition) the court, who will decide whether to let you proceed. Alternatively, personal insolvency can be enforced against you by your creditors if you’re unable to pay your debts.
Either way, when bankruptcy proceedings begin, your assets will be placed under the care of a Trustee appointed by the court. This Trustee will be imbued with extensive powers of investigation, which they’ll use to liquidate your assets (in other words, turn them into cash). The cash proceeds will then be used to pay off your creditors.
Bankruptcy can be a very clear and straightforward way of resolving your financial situation, but it is not a decision to be taken lightly. Your name and details will be published on the Individual Insolvency Register, and you will have to abide by certain rules – including co-operating with your Trustee.
For these reasons and more, the first step that our personal insolvency solicitors in Accrington will take is to have a detailed discussion with you about your circumstances, and whether bankruptcy is the right choice for you.
What is a Statutory Demand?
A Statutory Demand is basically a written warning from a creditor. If you’re unable to pay your debt within 21 days of receipt of this letter, or alternatively come to some other arrangement they find satisfactory, your creditor may then apply to the court to instigate bankruptcy proceedings against you.
Individual Voluntary Arrangements
An Individual Voluntary Arrangement is essentially an insolvency procedure which involves putting forward a plan to your creditors to pay off all or part of your debts, whether or not you’re already bankrupt. IVAs must be supervised by a qualified insolvency practitioner. They will act as the nominee until the arrangement comes into effect, at which point the practitioner will normally take on the role of supervisor.
If your IVA is approved, you’ll then be required to make regular scheduled payments to the insolvency practitioner, who will be responsible for apportioning the money between your creditors.
If you still have any questions, rest assured that our insolvency agents in Accrington can provide any help you might need around these areas of personal insolvency.
Debt Relief Order
A Debt Relief Order is a potential insolvency solution geared towards people with debts under £15,000, and who possess assets which do not exceed the value of £300 (based on gross rather than net value).
DROs are designed to provide a viable option for those with little to no disposable income with which they can pay off creditors, normally defined as no more than £50 of income per month (once all household expenses have been paid).
Debt Relief Orders are not available to those with an interest in property, and any savings you own should be worth less than £1000. Any car you own should also be worth less than £1000 unless it’s been specially adapted to account for a disability.
How can Farleys’ Insolvency Solicitors in Accrington help?
Farleys Solicitors LLP is a friendly, trusted, and straight-talking local firm with over 60 years of experience in serving clients in Accrington and across the North West. Our insolvency solicitors draw upon a wealth of knowledge and industry-specific expertise to provide clear, straightforward advice, while answering all of your most pressing questions regarding personal insolvency.
We know that every situation is different, so we always begin by arranging an in-depth discussion with you about your circumstances, so that we can help you make certain that declaring bankruptcy is the right decision for you.
Feel free to get in touch with our Accrington Insolvency Solicitors today on 01254 367853 or contact us by email.