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Bankruptcy FAQs Archives - Page 38 of 38 - Bankruptcy UK



What are the advantages of using a Debt Management Company?

  • Feeling of more control over your debts.
  • Instant phone access to the debt management company – no waiting for an appointment.
  • Anonymity. The debt management company deals with everything over the phone.
  • Convenience – the DMC does the work for you, e.g. drafting letters to creditors.

Do debt management plans work?

DMPs are most generally designed for those who have lower amounts of debt e.g. £7,500 and are in a situation where their finances might improve within a foreseeable period. The problem with these plans is that the monthly payments are usually so low that they never repay the capital and drag on for years at a time. The positive points are that creditors are kept at arms length and often interest is frozen for a period of time, though not permanently.

If your debts are below £15,000 and you meet the criteria, you might want to consider a Debt Relief Order, which is a type of ‘mini bankruptcy’. If you go on the internet and find that you fit the criteria, then this is definitely the better option as your debt is wiped once and for all – your local CAB will arrange the DRO paperwork for you. If your debts are above £15,000 it is unlikely you will ever repay the capital and you might want to call us.

Company Debt

Company Debt


If you are at the point where you realise that you need assistance because your company debt is at a level that you need assistance then we can help.

There are only 4 options to consider:


1. Do Nothing- Wait and see what happens and remain in survival mode until the outcome

2. Bankruptcy- We always suggest that bankruptcy is considered first as an option opposed to last. The reason is because if you have no assets, live in rented accommodation or own property where there is minimal equity, the bankruptcy is possibly the fastest way of eliminating unmanageable debts. It provides a fresh start t your financial life. We provide a pre bankruptcy counselling service.

3. Individual  Voluntary Arrangement or Company Voluntary arrangement- This can be arranged 2 ways. Either an income based voluntary arrangement or an asset based IVA. The essence of these arrangements is to allow you to make a legal agreement with your creditors whereby you make an offer to your creditors. ( the people and organisations you owe money to) and make them an offer . Providing 75% of the total amount of debt agree to the proposal then the other 25% would have to go with the arrangement.

4. Informal agreement with creditors made on a one to one basis that resembles a commercial debt solutions plan.


Don’t be fooled by so called professionals enticing people into certain arrangements. It does happen and if you are unsure about what to do then please don’t rush into just anything because its easy! Remember it takes 5 minutes to sign up and commit to these agreements but its a lot harder to cancel them.

Business Finance

Business Finance

Looking to release monies from a property and cant?

If you have restrictions and notices attached to your property because of a bankruptcy order at some point in the past? Or possibly a failed IVA then we may be able to help.

With the assistance of fellow Insolvency Practitioner who work towards improving a clients journey towards solvency , we are pleased to offer access to smaller lenders with an understanding of complex financial restrictions.

There are certain money lending rules that prohibit individuals of taking loans like this out in their personal capacity.

Therefore if borrowing is a requirement then they can provide Business Finance to Businesses owners. the business finance is a way of providing monies into your business that will allow you to loan yourself the money from the company to repay your trustee in bankruptcy or the supervisor of an existing IVA.

This can happen very quickly and providing you are able to produce signed and returned documents an offer can be made to you.

The view we take is practical. Monies are often tied into assets that have either, charges or restrictions against the property. This makes high street borrowing very difficult indeed for the majority of people who end up in this position. The option is more expensive, there is no question of that but mathematically these situations have to be measured against what the alternative in doing nothing is going to cost.

If you would like to discuss equity release of this nature call Sean 07479719319

Bankruptcy Trustee

Bankruptcy Trustee


Bankruptcy Trustee-When you enter into bankruptcy your application goes from the court where a copy is kept and a copy is forwarded to the Official Receiver who will be responsible to establish whether or not a Bankruptcy Trustee should administer the bankruptcy. This appointment provides the role is to liquidate any assets and distribute the proceeds to your creditors. This is only if you have assets such as a house or property with equity in. If you have nothing and live in rented accommodation and are simply entering bankruptcy to rid yourself of un manageable debt then a bankruptcy trustee will not be appointed.

A trustee is usually only appointed if there are assets to protect for and on behalf of creditors. so if you are a home owner, or you run your own business then it is likely a trustee will be appointed. It is at this point if you haven’t already will really need to think about what you are going to do. What and who is going to be affected by what is happening. It is likely that if you have a partner and children or family that is going to be affected by the procedure of the Trustee claiming assets on behalf of creditors.

With emotions sometimes running high and the fear of loss that you will all experience it is crucial that you remain focussed and find ways of either managing the situation or adjusting to what is happening and formulating a plan for the immediate future.

Do not bury your head in the sand and think everything will be OK. There are times in life you have to take decisive action. This is one of those times.






Bankruptcy UK

Bankruptcy UK