Personal Insolvency & Bankruptcy Solicitors in Manchester

Bankruptcy procedures can be instigated in one of several ways. You may choose to apply for bankruptcy yourself by petitioning (formally asking) the court, who will grant you permission to proceed. Alternatively, your creditors may bring insolvency proceedings against you if you are unable to pay your debts.

Either way, when bankruptcy proceedings begin, your assets will be entrusted to a formally appointed Trustee. The Trustee will wield extensive powers of investigation, which they’ll use to liquidate your assets (convert them into cash). The proceeds from these liquidations 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 still carries significant long-term consequences, so it must not be a decision taken lightly. Throughout the bankruptcy process you will have to abide by specific rules – including full cooperation with your Trustee – and your name will be published on the Individual Insolvency Register.

For these reasons and more, the first step that our personal insolvency solicitors in Manchester will take is to have a detailed discussion with you about your circumstances, and whether bankruptcy is the right choice for you.

A Statutory Demand essentially serves as a formal written warning from a creditor, or one delivered on their behalf. If you’re unable to pay your debt within 21 days of receipt of this letter, or come to an arrangement that your creditor finds satisfactory, your creditor may take steps to initiate bankruptcy proceedings against you.

In England and Wales, whether or not you have already been declared bankrupt, you can choose to propose a payment plan to your creditors to pay off all or part of your debts. This is known in personal insolvency law as an IVA, or an Individual Voluntary Agreement.

IVAs must be supervised by a qualified insolvency solicitor, who will serve as the nominee until the arrangement comes into effect. At that point, the insolvency solicitor will then transition to the role of active supervisor.

In the event that your IVA is approved, under the terms of the agreement you’ll be required to schedule regular payments to the insolvency agent, who will apportion the money to your various creditors on your behalf.

A Debt Relief Order is intended to be a viable insolvency solution for anyone with debts under £15,000, and who possesses assets which do not exceed the value of £300 (based on gross rather than net value).

DROs are only available to anyone with little to no disposable income that they could use to pay creditors – typically no more than £50 of income per month, once all household expenses have been paid.

DROs are not available to anyone with property interests, and conditions do apply. For example, any savings or assets owned should be less than £1000, and the applicant’s car or other form of personalised transport should be worth no more than £1000. There are exceptions – such as if the car has been specifically designed to accommodate a disability or long term health issue.

Farleys Solicitors LLP is a friendly, trusted, and straight-talking local firm with over 60 years of experience in serving clients in Manchester 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 Manchester Insolvency Solicitors today on 0161 660 4254 or contact us by email.