Described as ‘the melancholy consequence of debt and improvidence’, insolvency can impact heavily on a family. Often, the only asset available to creditors is the family home, which can lead to even greater conflict between creditors and those experiencing problems.
There are many reasons why people may experience insolvency. Our team is nationally recognised for its strength and experience. Whatever your situation is, we are here to help and support you.
Having Problems With Personal Insolvency?
If you are facing insolvency, the problems can sometimes feel insurmountable. Not only are there the financial and technical elements to consider, there is also the pressure you may feel to keep your family protected and to ensure that they are supported. Obligations and liabilities need to be dealt with, and seeking advice is important.
With many different options and solutions available to you, we are here to support and steer you through the unchartered waters that you may be encountering.
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.
About Personal Insolvency
At present, there are three options available to someone who is experiencing insolvency problems.
The first of these is bankruptcy. In order to become bankrupt, you must be subject to a court order defining you as such. To read more about bankruptcy, visit our dedicated page.
The second is an Individual Voluntary Arrangement (IVA). This serves as an alternative to being declared bankrupt, in which the individual experiencing the problems can work out an agreement with their creditors. Find out more about IVAs here.
The final option is a Debt Relief Order (DRO), aimed at people who owe less than £15,000 and is similar in many ways to bankruptcy, but aimed at people who have limited assets.
What Are The Consequences of Personal Insolvency?
The impact of personal insolvency will vary widely, depending on what action you take. For instance, if the route of bankruptcy is taken, there may be restrictions on the involvement you can have in running a business, and some restrictions on what type of job you do.
A DRO will impact your credit rating and may affect your ability to borrow money and hence buy a house. While an IVA may make a difference to your future income and assets, and things such as money made from selling a property may have to be paid into the IVA.
There are many other aspects of all types of agreement that need to be considered, and we are here to talk through all the options, to help you decide which is best for you.
We provide pragmatic and realistic advice on the consequences of personal insolvency, including the repercussions it may have on your day-to-day life.
We aim to provide you with practical solutions to problems you are experiencing, such as reaching a settlement with creditors informally or creating an individual voluntary arrangement.
The team at Lupton Fawcett has worked with a number of individuals who, for a variety of reasons, have faced personal insolvency. We understand the legal aspects of insolvency inside-out and you can have confidence in our experience and expertise. If you are facing serious debt and require compassionate legal advice, we are here for you.
Contact Us For Help
We provide advice on a wide range of legal issues to clients around Yorkshire from our offices in Leeds, York and Sheffield. For an initial discussion on the specific details of your case, contact our solicitors today using the details below.
Speak to expert insolvency solicitors
The team at Lupton Fawcett has worked with a number of individuals who, for a variety of reasons, have faced personal insolvency. We understand the legal aspects of insolvency inside-out and you can have confidence in our experience and expertise. If you are facing serious debt and require compassionate legal advice, call our Leeds, Yorkshire or Sheffield office today.
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With Lupton Fawcett on your side, you're taking control. Contact us today.