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Many individuals find themselves with financial difficulties and in these circumstances we can assist as follows:-
Individual Voluntary Arrangements (IVA)
Is a scheme of arrangement for individuals who find themselves in financial difficulties and who are most likely insolvent.
An application with proposals on how creditors are to be paid is made to the Court to apply for an Interim Order, and if granted no creditor can take proceedings without leave of the Court.
A meeting of creditors is convened to consider the proposal, and if accepted by the required majority of creditors, on value, the arrangement is binding on all creditors. In general terms the proposals should indicate that creditors would receive a better return than if the affairs of the individual were dealt with by way of a Bankruptcy.
Bankruptcy
If all attempts fail to reach a compromise with creditors, and it is not possible to propose an Individual Voluntary, the result may be Bankruptcy. This may be by way of a creditor’s petition or for the debtor to file his or her own petition for bankruptcy.
As soon as a Bankruptcy Order has been granted the Official Receiver takes control of the estate and, if appropriate, a Trustee in Bankruptcy is appointed by the creditors at a meeting of creditors, or by application to the Secretary of State for an appointment.
All assets of the debtor are realised and distributed accordingly. A debtor was previously discharged from bankruptcy following a period of 2 to 3 years, but following a change in the Insolvency legislation on 1st April 2004 a debtor will now automatically receive a discharge from bankruptcy after a period of one year, if a first time bankrupt.
In certain circumstances, it is possible for a bankrupt to obtain their discharge far sooner, possibly as soon as three months after bankruptcy.
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