Personal Insolvency

There are currently three formal insolvency procedures available to people with personal debt problems. The law makes no distinction between people with consumer credit debts (credit cards, store cards and bank loans) and those whose debts arise from their trading as a sole trader or in a partnership:

People can also enter into informal arrangements and debt management plans (DMPs) with their creditors. DMPs are not currently regulated, although there are proposals for legally regulated plans, due to be implemented in 2010.

No matter how your debts were incurred, everyone with debt problems face similar practical issues:

What will happen to my home?
Will I have to make a monthly payment and how will it be calculated?
What will happen to my bank account?
Will bailiffs visit my house?
What will be the effect on my credit rating?
Will my employer find out I am insolvent?
Can I sign my home over to my husband or wife before I go bankrupt?
Can I carry on running a business?

These are some of the issues you should be seeking to discuss with your professional advisers before you decide which option is best for you. It is vital that you fully understand the implications of the course of action you are being advised to take.

Download IPA "Dealing with Debt - A Basic Guide to Alternative Ways of Resolving Debt Problems"

For company rescue call: 020 8841 5252 For personal debt call: 0845 600 3312