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Debt Advice Recovery Farleys Solicitors
Debt Advice Recovery Farleys Solicitors

Personal Insolvency & Bankruptcy Solicitors in Preston

Personal Insolvency & Bankruptcy Support & Advice From Farleys Solicitors in Preston

If you’re currently dealing with personal insolvency, you already have first hand experience of just how stressful that can be. Your financial situation can be influenced by a huge number of factors, some of which may well be outside your control. So if you’re struggling to pay your debts, or creditors are threatening to take court action, rest assured that you’re not alone.

That’s where we can help here at Farleys Solicitors. With more than 60 years of experience behind us, our decades of in-depth expertise enables us to provide help and guidance on all stages of the insolvency procedure, from statutory demands all the way up to bankruptcy petitions and court proceedings.

Our insolvency lawyers in Preston can also co-ordinate with a trusted network of professionals who specialise in personal insolvency issues, so we’re able to provide not only direct advice tailored to your situation, but also signpost you towards any specific resources or support that you may need.

What is Bankruptcy?

Bankruptcy is a legal procedure to give debt relief to people who have little to no hope of paying their debts within a reasonable timeframe, and whose financial circumstances remain unlikely to significantly change. Personal bankruptcy proceedings are only open to individuals. For businesses or other corporate entities who cannot pay off their debts, they are subject to corporate insolvency proceedings instead.

Personal insolvency UK rules vary between different countries in the United Kingdom. The process in England and Wales is slightly different to its counterparts in Scotland or Northern Ireland.

We advise individuals, businesses and insolvency professionals on the legal aspects of:

What does Personal Bankruptcy in Preston involve?

You may choose to voluntarily apply for bankruptcy yourself, in which case you will need to formally ask (or ‘petition’) the court to grant you permission to proceed. Alternatively, you may have personal insolvency proceedings initiated against you by your creditors.

In either case, the subsequent process follows basically the same format. The court will appoint a Trustee to handle your assets. This Trustee will be granted extensive powers of investigation, which they’ll use to liquidate your assets (turn them into cash). These 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’s worth noting that it is not a decision that can be made lightly. You will have to adhere to strict rules during the process, including full cooperation with your Trustee, and there are several long-term consequences involved – for example, 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 Preston 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 formal written communication from your creditor, requesting payment of your debt in full within 21 days from receipt of the letter. If you’re unable to do so, and also unable to 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 in which involves submitting a proposed 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 declared bankrupt. IVAs must be supervised by a qualified insolvency solicitor, who will serve as the nominee until the arrangement comes into effect. From that moment onwards, the insolvency agent will transition from nominee to the role of active supervisor.

If your IVA is approved, the terms of the agreement will require you to make scheduled payments to the insolvency practitioner, who will apportion the money between your creditors on your behalf.

If you have any specific questions about IVAs, our personal insolvency solicitors in Preston are always happy to help.

Debt Relief Order

A Debt Relief Order is a potential insolvency solution specifically geared towards people who have debts under £15,000, and who possess assets that don’t exceed the value of £300 (based on gross rather than net value).

DROs are designed chiefly for people who have little to no disposable income – i.e. no more than £50 of income per month, once all household expenses have been paid. This typically leaves them with very limited options to pay back their creditors.

Debt Relief Orders are not open to anyone with property interests, or anyone with savings worth more than £1000. Any owned cars or personal transport must also be worth less than £1000, unless they have been specifically designed to accommodate a disability or other long term health condition.

How can Farleys’ Insolvency Solicitors in Preston help?

Farleys Solicitors LLP is a friendly, trusted, and straight-talking local firm with over 60 years of experience in serving clients in Preston 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 Preston Insolvency Solicitors today on 01772 978680 or contact us by email.

Contact a Personal Insolvency or Bankruptcy Solicitor in Preston

For a free consultation with a Personal Insolvency or Bankruptcy Solicitor, please call Farleys Solicitors now on 01772 978680 or contact us by email.

"I would like to thank Mark for all his help as I could have not gone through this without his help and advise. Three months have gone by and there is a new chapter in our lives, I have started a new job and all our finances will improve along the way."

“Removing the anxiety and helping in all the aspects of my debts that are now fully resolved. I am now able to face my life without the constant fear of bankruptcy hanging over me”

“Having worked extensively with solicitors and Barristers in my professional career I was in no doubt that to pay a fee for high quality professional help was the most sensible course of action. The most favourable outcome of my recent Bankruptcy proceedings have confirmed this. I can’t begin to thank you enough for supporting and advising me at a most difficult time in my life. ”

Meet our Specialist Personal Insolvency & Bankruptcy Solicitors

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