What does Personal Bankruptcy in Burnley involve?
Bankruptcy proceedings can be instigated in one of several ways. You might voluntarily choose to apply for bankruptcy yourself, which involves petitioning (formally asking) the court to grant permission. Alternatively, personal insolvency proceedings may be initiated against you by your creditors if you are unable to repay your debts to them.
Once bankruptcy proceedings begin, the court will place your assets under the care of an appointed Trustee, and empower them with extensive powers of investigation. It will then be the Trustee’s responsibility to liquidate your assets as necessary, and use the cash proceeds to pay off your creditors.
While bankruptcy can be a clear and straightforward way of resolving your financial situation, it’s not a decision to be taken lightly. You will be required to abide by strict rules, including full cooperation with your Trustee, and your name and details will be published on the Individual Insolvency Register.
For these reasons and more, the first step that our personal insolvency solicitors in Burnley 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 essentially serves as a written warning from a creditor, either delivered by them directly or delivered on their behalf. If you’re unable to pay your debt to them in full within 21 days of receipt of the letter – or alternatively, come to some other arrangement they find satisfactory – they may apply to the court to instigate bankruptcy proceedings against you.
Individual Voluntary Arrangements
An Individual Voluntary Arrangement is essentially an insolvency procedure which comprises 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 solicitor, who will act as the nominee until the arrangement comes into effect. From that point onwards, they will assume the role of supervisor.
If your IVA is approved, you’ll make scheduled payments to the insolvency practitioner, who will apportion the money between your creditors on your behalf.
If you’ve got any questions, our insolvency agents in Burnley are always happy to provide any help or insolvency advice you might need.
Debt Relief Order
A Debt Relief Order is a potential insolvency solution intended for people with debts under £15,000, and who possess assets that don’t exceed the value of £300 (which is based on gross rather than net value).
DROs are specifically there to provide an option for people who have little to no disposable income which they might use to be able to pay off donors – normally defined as no more than £50 of income per month, after all household expenses have been paid.
Debt Relief Orders are also not available to anyone with property interests, and if you plan on applying for one, any savings you own should be worth less than £1000. Any car you own should also be less than £1000, unless it’s been specifically designed to account for a disability or other long term health condition.
How can Farleys’ Insolvency Solicitors in Burnley help?
Farleys Solicitors LLP is a friendly, trusted, and straight-talking local firm with over 60 years of experience in serving clients in Burnley 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 Burnley Insolvency Solicitors today on 01282 798664 or contact us by email.