What does Personal Bankruptcy in Blackburn involve?
You can choose to apply for bankruptcy yourself, or you may have personal insolvency proceedings brought against you by your creditors. If you voluntarily apply for bankruptcy, you will need to petition (formally ask) the court, who will decide whether or not to grant you permission to proceed.
The court will then appoint a Trustee, who will take responsibility for your assets. The Trustee will have been granted with extensive powers of investigation, which they’ll use to liquidate your assets (convert them into cash). The proceeds from the liquidation will 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 without consequences, so you must consider the decision very carefully. Your name and details will be published on the Individual Insolvency Register, and you will have to adhere to strict rules, including full co-operation with your Trustee.
For these reasons and more, the first step that our personal insolvency solicitors in Blackburn 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 essentially a letter of warning delivered by, or on behalf of, one of your creditors. The Statutory Demand will give you 21 days to pay your outstanding bill, starting from the date of receipt. If you are unable to do so, and also unable to come an arrangement that your creditor finds satisfactory, they may apply to the court to instigate bankruptcy proceedings against you.
Individual Voluntary Arrangements
In a nutshell, an Individual Voluntary Arrangement is a renegotiation by an individual of all the payments due to their creditors. Essentially, this involves proposing a payment plan to your creditors to pay off all or part of your debts. You can do this whether or not you have already been made bankrupt.
IVAs must be supervised by an insolvency lawyer, who will act as the nominee prior to the approval of the arrangement. Once the IVA has been approved, they will then step into the role of supervisor to oversee the execution of the agreement.
In the event that your own IVA is approved, under the terms of the agreement you’ll be required to make scheduled payments to the insolvency solicitor, who will then apportion the money out between your creditors.
If you’ve got any questions, don’t forget that our insolvency agents in Blackburn can provide any help or personal insolvency advice you might need around these areas.
Debt Relief Order
A Debt Relief Order is a viable insolvency option for anyone with debts under £15,000, and who possesses assets which do not exceed the value of £300 (based on gross value, not net value).
DROs are specifically intended for anyone with little to no disposable income that they could otherwise use to pay off creditors – typically no more than £50 of income per month, after all household expenses have been paid.
This type of solution is not available to anyone with property interests, and strict conditions apply. Any savings or assets owned should be worth less than £1000. The applicant’s car or other personalised transport should also be worth £1000 or less, unless it has been specifically designed to account for a disability.
How can Farleys’ Insolvency Solicitors in Blackburn help?
Farleys Solicitors LLP is a friendly, trusted, and straight-talking local firm with over 60 years of experience in serving clients in Blackburn 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 Blackburn Insolvency Solicitors today on 01254 367855 or contact us by email.