Contact us:
T: +44(0)1795 538 853
F: +44(0)1795 538 868
Granville House
49 The Mall
Faversham
Kent ME13 8JW
info@augustakent.co.uk
Or let us contact you:
Informal Arrangements
The first port of call when considering regaining control and depressurising your financial situation. This is where you come to an informal agreement with specific creditors over outstanding debts owed to them. This could take the form of rescheduling payments over an agreed period of time – perhaps longer than the creditor would ideally prefer, but this way you can afford them and they get paid.
The disadvantage to an informal agreement is that it is not legally binding. The creditor can withdraw from it at any time and commence formal proceedings against you and your estate to recoup the debt. Also, whilst you are undergoing the terms of this agreement, it does not prevent another creditor seeking recompense against your estate for monies owed.
The advantage is where you have a limited number of creditors who, through the informal arrangement, can see direct benefit from taking part: for example, they get paid (eventually) in full – whereas with a formal voluntary arrangement this is not always the case.
At Augusta Kent, we have extensive experience in advising clients throughout these negotiations. We will be able to assist, where required, in developing solutions along this route, if it is an appropriate solution that best meets your interests in the short and long term. Contact us for your free initial consultation today.
Individual Voluntary Arrangements (IVA)
This is one of the insolvency solutions that may be suitable for you and your personal financial circumstances. It is a formal insolvency procedure in which your licensed insolvency practitioner reviews your individual financial circumstances and draws up a proposal, which is then put to your creditors. It details a schedule of repayment for a certain percentage of the debt owed to them, over a period of time. Once agreed, you and your creditors are bound by the terms of the agreement.
This gives you breathing space, protects your assets and prevents any bankruptcy or further legal proceedings being started against you by your creditors.
On completion of the arrangement, the remaining percentage of debt will be written off - allowing you to have a fresh start.
It is important that you use a fully licensed insolvency practitioner to help you assess your financial position and investigate the best route forward for you. At Augusta Kent, we have extensive experience of these and other informal and formal insolvency solutions.
Bankruptcy
This formal insolvency procedure draws a line under all recent financial pressures, enabling you to make a true fresh start. It can be brought about in two ways: you can declare yourself bankrupt, or a creditor (to whom you owe over £750) can apply to the court to make you bankrupt. The Official Receiver is initially appointed as the Trustee of your bankruptcy but he or a majority of your creditors may appoint an independent Insolvency Practitioner subsequently.
Whichever the route, bankruptcy should not be taken lightly. There are many ways in which it impacts your personal and financial affairs. For example:
- It will severely affect your credit rating;
- You could lose your home if there is equity in it;
- You will not be able to act as a director of a company;
- You will have to attend an interview with local Official Receiver (a government official) to assess the reasons for your bankruptcy and declare any assets you may have; and
- You may still have to agree to pay any excess disposable income towards your creditors for three years.
However, it will draw a line under recent financial pressures and it will not necessarily impact any mortgage arrangements, should you or your spouse be able to keep up with the repayments.
At Augusta Kent, we have substantial experience of advising individuals under these financial pressures. Bankruptcy will only be advised as a last resort, if you are unable to make other arrangements with your creditors.
In many cases we can intervene during the bankruptcy process with an informal insolvency procedure and stop it in its tracks. We can even take steps after you have been declared bankrupt – if your circumstances will allow. Rest assured that through our experience, if an alternative is available and it is in your best interests, then a strategy can be devised that best suits your own personal circumstances.
Take control again and contact us for your free initial consultation.
The information presented is for information purposes only. The information is not, and is not intended to, amount to professional advice and should not be applied to specific circumstances. No responsibility for its accurateness and correctness, or for any consequences of relying on it, is assumed by Augusta Kent Limited. We strongly advise that you contact us or any other licensed insolvency practitioner for specific, personal advice.
