Personal Insolvency and Bankruptcy Advice
Where an individual’s debts have become unmanageable, bankruptcy may be an option to help clear those debts and allow the individual to get their finances back under control. However, bankruptcy is not the only option in such circumstances, and it is important to take expert advice before making any decisions that could have long-term consequences.
At IBB Law, our Bankruptcy & Personal Insolvency team advises a wide range of individuals on their options when facing insolvency. We have particular experience in advising clients with personal debts in excess of £500,000 so can provide seasoned advice for even the most complex and high value personal insolvency matters.
We can take you through your options, including bankruptcy, as well as alternatives that can allow you to effectively manage and repay your debts without the long-term consequences associated with bankruptcy. At all times, we will act to protect your interests while ensuring you meet your financial and legal obligations.
Our team can assist with all aspects of personal insolvency & bankruptcy proceedings, including:
- Advising you on your options and their relative merits
- Entering an Individual Voluntary Arrangement (IVA) to avoid bankruptcy
- Making a bankruptcy petition
- Opposing a bankruptcy petition
- Complying with the terms of a Bankruptcy Order
- Ending bankruptcy
- Legal services for insolvency practitioners
Our personal insolvency and bankruptcy solicitors will discuss your situation with you and talk you through your options in plain English, giving you the confidence to make the right choice for your immediate needs and for your future. We will then take care of all of the legal details, making proceedings as simple and stress-free as possible at what can be a very challenging time.
We understand that cost is an important consideration in these situations, so can provide a number of flexible funding options to match your needs.
Please note: due to the high level of our expertise, we can only provide cost-effective insolvency and bankruptcy advice to individuals with debts in excess of £500,000 If your debts are below this level, a debt charity such as StepChange may be able to assist with options such as a Debt Relief Order.
For expert legal advice on dealing with bankruptcy and personal insolvency, please call 01895 207927 or email insolvency@ibblaw.co.uk for immediate assistance.
Our expertise with bankruptcy & personal insolvency
At IBB Law, our dedicated bankruptcy and personal insolvency solicitors have decades of collective experience guiding clients through these challenging issues. We understand how stressful dealing with serious financial difficulties can be, but by providing clear, practical advice and close personal support, we aim to help you get your finances and your life back on track.
IBB Law is recognised across a number of areas in leading legal directory Chambers & Partners, with Partner and personal insolvency specialist Sarah Jackson recognised for her “no-nonsense, pragmatic advice, balancing the costs and the benefits.”
The team is able to draw on the expertise of others within the wider firm, including property and tax experts, allowing us to provide a complete service covering all of your legal needs. As well as our own expertise, we also have good working relationships with insolvency practitioners, banks and other professionals who can help to support our clients.
How our team can help with bankruptcy & personal insolvency
One of the most common alternatives to bankruptcy for insolvent individuals, an IVA is an agreement you reach with your creditors to pay off all or part of your debts.
The goal with an IVA is to renegotiate the payments you are required to make to your creditors to make them more manageable for you. It can reduce your overall monthly payments, give you more time to pay and potentially result in some of your debt being written off by your creditors.
Individual voluntary arrangements must be supervised by an insolvency practitioner and creditors responsible for at least 75% of your debt must agree to the IVA for it to be used.
Our insolvency solicitors can advise you on whether an IVA is good solution for your situation, assist with appointing an insolvency practitioner and make sure you understand the terms of the IVA and your obligations.
If you wish to be declared bankrupt, you must apply to a court requesting that they issue a Bankruptcy Order against you. You will then have to attend a bankruptcy hearing. Bankruptcy means that you will no longer be liable for most of your debts and prevents your creditors taking most types of legal action against you.
However, there are serious consequences to being made bankrupt, including:
- Having to hand over your assets to the person handling your bankruptcy
- The potential for your assets to be sold to pay your debts
- If you have a sufficient income, you may have to enter an Income Payment Agreement allowing part of your income to be taken to repay your debts – this agreement can stay in place for up to three years
- Being included on the Individual Insolvency Register
- Your credit rating will be affected for the next 6 years
- Bankruptcy can affect immigration status
- Being subject to bankruptcy restrictions, including:
- Being unable to borrow more than £500 without disclosing your bankruptcy
- Restrictions on acting as a company director, creating, managing or promoting a company
Bankruptcy restrictions will typically last 12 months from the date on which a Bankruptcy Order is made. If an additional Bankruptcy Restriction Order is made, this will restrict your financial affairs to up to 15 years. Breaching bankruptcy restrictions is a criminal offence.
Before making the decision to apply for bankruptcy, it is essential to take specialist legal advice. Our team can advise you on whether bankruptcy is a good option for your circumstances, suggest alternatives where appropriate, and assist with your application should you decide to pursue bankruptcy.
Our bankruptcy lawyers can represent you at a bankruptcy hearing and assist you with complying with the terms or a Bankruptcy Order and/or a Bankruptcy Restriction Order.
If you owe more than £5,000 and have failed to make repayments, your creditors have the option to apply for a Bankruptcy Order against you. They can only do this is they have already made reasonable attempts to recover the debt (e.g. making a formal demand, entering into an Individual Voluntary Arrangement (IVA) which you have failed to comply with).
If a creditor has made a bankruptcy petition against you, you can oppose the petition if you believe you have solid reasons for doing so. You will need to notify the relevant court that you intend to oppose the petition at least five days before your bankruptcy hearing. You will then need to present your case at the hearing, explaining why you feel bankruptcy is not appropriate and proposing an alternative solution.
Our bankruptcy solicitors can advise you on whether we believe you have grounds to oppose a bankruptcy petition, help you prepare your case and represent you during your bankruptcy hearing where required.
You can apply to a court to end your bankruptcy in the following circumstances:
- All of your debts and bankruptcy fees have been paid in full
- Your debts and bankruptcy fees have been secured by a third party
- You have entered an Individual Voluntary Arrangement with your creditors
- You can show that the Bankruptcy Order should not have been made
If you wish to cancel your bankruptcy, our solicitors can advise you on whether this is likely to be an option in your case and then guide you through the process of doing so where appropriate.
Our team can assist licensed insolvency practitioners acting for individuals facing insolvency or going through bankruptcy proceedings. We can help with matters such as the sale of assets and drafting any necessary documents, including Individual Voluntary Arrangements.
Find out more about our legal services for insolvency practitioners.
Speak to our bankruptcy & personal insolvency solicitors
One of the most common alternatives to bankruptcy for insolvent individuals, an IVA is an agreement you reach with your creditors to pay off all or part of your debts.
The goal with an IVA is to renegotiate the payments you are required to make to your creditors to make them more manageable for you. It can reduce your overall monthly payments, give you more time to pay and potentially result in some of your debt being written off by your creditors.
Individual voluntary arrangements must be supervised by an insolvency practitioner and creditors responsible for at least 75% of your debt must agree to the IVA for it to be used.
Our insolvency solicitors can advise you on whether an IVA is good solution for your situation, assist with appointing an insolvency practitioner and make sure you understand the terms of the IVA and your obligations.
If you wish to be declared bankrupt, you must apply to a court requesting that they issue a Bankruptcy Order against you. You will then have to attend a bankruptcy hearing. Bankruptcy means that you will no longer be liable for most of your debts and prevents your creditors taking most types of legal action against you.
However, there are serious consequences to being made bankrupt, including:
- Having to hand over your assets to the person handling your bankruptcy
- The potential for your assets to be sold to pay your debts
- If you have a sufficient income, you may have to enter an Income Payment Agreement allowing part of your income to be taken to repay your debts – this agreement can stay in place for up to three years
- Being included on the Individual Insolvency Register
- Your credit rating will be affected for the next 6 years
- Bankruptcy can affect immigration status
- Being subject to bankruptcy restrictions, including:
- Being unable to borrow more than £500 without disclosing your bankruptcy
- Restrictions on acting as a company director, creating, managing or promoting a company
Bankruptcy restrictions will typically last 12 months from the date on which a Bankruptcy Order is made. If an additional Bankruptcy Restriction Order is made, this will restrict your financial affairs to up to 15 years. Breaching bankruptcy restrictions is a criminal offence.
Before making the decision to apply for bankruptcy, it is essential to take specialist legal advice. Our team can advise you on whether bankruptcy is a good option for your circumstances, suggest alternatives where appropriate, and assist with your application should you decide to pursue bankruptcy.
Our bankruptcy lawyers can represent you at a bankruptcy hearing and assist you with complying with the terms or a Bankruptcy Order and/or a Bankruptcy Restriction Order.
If you owe more than £5,000 and have failed to make repayments, your creditors have the option to apply for a Bankruptcy Order against you. They can only do this is they have already made reasonable attempts to recover the debt (e.g. making a formal demand, entering into an Individual Voluntary Arrangement (IVA) which you have failed to comply with).
If a creditor has made a bankruptcy petition against you, you can oppose the petition if you believe you have solid reasons for doing so. You will need to notify the relevant court that you intend to oppose the petition at least five days before your bankruptcy hearing. You will then need to present your case at the hearing, explaining why you feel bankruptcy is not appropriate and proposing an alternative solution.
Our bankruptcy solicitors can advise you on whether we believe you have grounds to oppose a bankruptcy petition, help you prepare your case and represent you during your bankruptcy hearing where required.
You can apply to a court to end your bankruptcy in the following circumstances:
- All of your debts and bankruptcy fees have been paid in full
- Your debts and bankruptcy fees have been secured by a third party
- You have entered an Individual Voluntary Arrangement with your creditors
- You can show that the Bankruptcy Order should not have been made
If you wish to cancel your bankruptcy, our solicitors can advise you on whether this is likely to be an option in your case and then guide you through the process of doing so where appropriate.
Our team can assist licensed insolvency practitioners acting for individuals facing insolvency or going through bankruptcy proceedings. We can help with matters such as the sale of assets and drafting any necessary documents, including Individual Voluntary Arrangements.
Find out more about our legal services for insolvency practitioners.
For clear, effective advice on dealing with any aspect of bankruptcy and personal insolvency, our expert team are here to help.
Please call Sarah Jackson on 01895 207927 or email insolvency@ibblaw.co.uk for immediate assistance.
