Our agents are on hand to speak to you 7 days a week.
GET IN TOUCH WITH US NOW!     01425 600129 | enquiries@bankruptcy.co.uk



What choice should you make when considering an insolvency solution to clear outstanding and unmanageable debts? Making the right decision is critical. IVA companies will encourage you to take out an IVA as this makes them plenty of money, but beware the implications. Do I Clear Debts with an IVA or Bankruptcy?

IVAs can be an sound choice in some circumstances. If, for example, you wished to continue practicing as a Director or you have significant assets, then of course an IVA is suitable. However, a report released by the Insolvency Service indicated that of all the people who had entered into an IVA, less than 29% were given information about the benefits of bankruptcy and whether it might be a more appropriate solution.

IVA companies have now reduced the amount of debt required to qualify for an IVA from £15,000 to just £7,000 in a bid to attract more clientele. This is ridiculous when considering the long term damage this will have on your credit file. An IVA lasts for a minimum of 5 years. Your income is capped and if you earn any more money you are obliged to pay any surplus income to your creditors. This will leave most people on the breadline for years after they took out the arrangement.

Bankruptcy Restriction Order
Bankruptcy Restriction Order

There are always things people can do when looking for help and assistance. It is hard to get these answers when looking for free help and advice, as the reality is that free advice is often the most expensive information you can receive.

Look into the small print of these agreements carefully before you committing. If in doubt get a professional to look at it and have it explained to you.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.



Moving from IVA to Bankruptcy
Moving from IVA to Bankruptcy

I have had two customers go bust owing me thousands of pounds and I have had to lay off my staff and close shop. I am a sole trader so I’m personally liable for my debts and I’m considering an IVA. Has anyone got experience of this or have any advice?

IVAs are specifically designed to protect assets such as properties in positive equity and businesses – particularly limited companies where Directorships are involved – so if you have neither of these an IVA is a wretchedly expensive debt solution. We were not clear about whether you owned a property (with equity) or had any other notable assets, but if you don’t a 12 month bankruptcy is infinitely more desirable than a five year IVA. Call us and we’ll talk you through it.

Bankruptcy UK offers bankruptcy help across the board, including dealing with creditors like HMRC, completing the all-important Income and Expenditure and professional submission of the application online.

Feel free to call us with any other bankruptcy questions or for bankruptcy help on 01425 600129.

I have debts of £23k with a few different creditors which I have been managing to slowly pay off, but I have recently been diagnosed with a condition which has meant I have had to reduce my working hours from full time to part time and now I’m struggling to pay anything. We live at home with my mum so our rent is low. I have a car which is not worth more than £1,500 but is needed due to my condition as I can’t walk far. We would like to buy a house in the distant future. Which do you think would be better: an IVA or Bankruptcy? Which would have more of a negative impact on our future?

Starting from the top, an IVA is specifically designed to protect assets such as properties and businesses, and are wretchedly expensive debt solutions for those in your position i.e. no assets and on low income. Besides, we doubt you would be accepted into an IVA given your earnings. The fact that you have had to reduce your hours will actually help you in bankruptcy, as it is now most unlikely you will be expected to pay anything in an Income Payments Arrangement. As for your car, we feel that in the circumstances you will be allowed to keep it despite it being slightly over the allowed limit. Regarding buying a property in the future, Mortgage Advisers are now able to arrange mortgages for those who have discharged for three years, provided a) there has been no trouble in the interim and b) you have a minimum 25% deposit.

Bankruptcy UK offers bankruptcy help across the board, including dealing with creditors like HMRC, completing the all-important Income and Expenditure and professional submission of the application online. Call us on 01425 600129 or 0800 5977 977 for a chat about your circumstances.

Perhaps the best way to answer this question is to simply state the facts and let you be the judge. 

            Some interesting points about IVAs: 

  • IVAs are intended to protect assets that might otherwise be lost in bankruptcy e.g. properties, high value vehicles, etc. If you are living in rented and only own everyday items like TVs and fridges, there is no reason to be in an IVA.
  • You will be tied into the IVA for a minimum of 60 months, but if you are on a ‘low start’ IVA i.e. paying less than you should, you will be tied in for a minimum of six years. For example, if your debts totaled £20k when you entered the IVA you should be paying around £185pm
  • The set up costs for an IVA can run into thousands of pounds and this is where your monthly payment goes for the first two years of the IVA – to the IVA company to pay the set up costs. Not a penny goes to the creditors.
  • Thereafter, a trickle of money goes to the debt collectors that bought the debt. It is a myth that you are repaying the banks you borrowed from as it has already been sold on and written off.
  • IVAs have exactly the same effect on your credit rating as bankruptcy. In the eyes of the High Street, people in IVAs are bankrupt.
  • Your credit rating is zero for a minimum of 6yrs in an IVA, whereas those discharged from bankruptcy can now get a mortgage after 36 months (credit cards in half that time). Which begs the question: why struggle in an IVA for years on end when you can be in and out of a bankruptcy in just 12 months? 


        Some interesting points about Bankruptcy:

  • You no longer have to attend court. Everything is done online and over the phone. You can literally go bankrupt from the comfort of your armchair.
  • Nobody comes to your house to check what assets you have
  • Bailiffs, Debt Collectors and harassing phone calls are a thing of the past
  • You are only bankrupt for a maximum period of 12 months
  • You can keep cars up to the value of £1000 (but this is often stretched)
  • You can keep your bank account provided there is no debt or overdraft in place
  • Mortgaged properties are not lost in bankruptcy if there is no equity
  • Your name no longer appears in local newspapers
  • Around 85% of those switching from IVA to Bankruptcy have no monthly payment at all while the remaining 15% have a greatly reduced monthly payment.

Perhaps the most significant point when considering whether to leave an IVA is that your financial circumstances are reassessed. It is often the case that people’s financial positions have worsened since entering the IVA and this is recognised by the court. The end result is that there is often no monthly payment – or a greatly reduced one – following bankruptcy.

If you are considering bankruptcy, we will help you throughout the process and submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us for a chat or for bankruptcy help on 01425 600129.




I’m currently in an IVA and thinking about bankruptcy. I am struggling with the monthly payments and now my IVA provider is asking for another £40 per month as part of my annual review. This is going to hurt us as a family, as we have large outgoings, but the IVA provider says we can afford it. Due to my circumstances, I have been advised that going bankrupt might be an option. My only concern is losing my house, car and job. One of the debts is jointly owned and the mortagage is in joint names. However, my ex has not contributed since 2008 and has no interest in the property. 

We need to speak with you as we need to know a) whether there is any equity in the property and if you can afford to pay the mortgage every month and b) the value of the car. If there is no equity in the property you will not lose the house in bankruptcy. The Official Receiver will make a note on the Land Registry and review the situation in two year’s time, but in our experience no further action is ever taken. In fact, in the 20 years we have been in the business, we have only ever known of one case where a sale was enforced.

Regarding the car, these may be retained in bankruptcy provided a) you need it for work and b) the value does not exceed £1,000 or close to that figure. Bank accounts are similarly unaffected provided there is no debt with the bank in question. Give us a call and we’ll get it all straightened out for you.

Bankruptcy UK offers bankruptcy help across the board, including dealing with creditors, completing the all-important Income and Expenditure and  submitting the application online. ‘I’m In an IVA and thinking about Bankruptcy’ is just one of many issues we deal with daily – Feel free to call us with any other bankruptcy questions or for bankruptcy help on 01425 600129.

Bankruptcy Information UK

Welcome to www.bankruptcy.co.uk Established 1998 We have been helping people with complex personal and commercial debt problems. We believe that we are different to other debt solution businesses as we offer a firm but understanding approach to the most complex of circumstances opposed to other organisations whose primary focus is to sell you into a debt management plan or IVA Individual voluntary arrangement.

Our experience tells us that when we receive a call from someone looking for more help or assistance, then we have to firstly get a snap shot of what is going on in the background in order that we can quickly obtain an accurate view of who you are and what it is that is creating the problem. We know and understand only too well the way that debt problems can make a person feel and we will seek to get onto the same page as you within the first few minutes of an initial conversation. Ultimately you need to know and understand that we can provide you with the level of assistance required. It is also crucial that you feel that your circumstances are understood by whoever you are speaking to.

After we have confirmed your contact details then the initial primary focus is to understand:

1. What you have got going on around you
2. Examine the options that are feasibly available to you
3. Identify the trigger points as to how you have ended up in the position that you are in.
4. See if there is any chances or claiming any monies back from creditors or loan providers where you may have a legitimate claim for mis sold mortgage or PPI that may have been applied to any loans or credit facilities that yo have ever taken out on the past.

2013 has been a year of speaking to people that have absolutely no idea that there was/is monies available to claim back. These monies are often substantial and make the bottom line look very different. Although it is not always possible for a claim to be looked at as a solution. It is certainly an option that has to be considered.

The options are as follows:

Do Nothing- Wait and see what happens, knowing that if you take this option the situation may simply go away, or something could happen to change the landscape of your debt situation, such as a windfall or additional household income.

Personal Bankruptcy- This option should be considered first of all in our opinion with higher debt values. If you have no assets to speak of, and you have a job or career that will not be affected by a bankruptcy order, and you cannot see any opportunities coming up that are likely to enable you to manage your debts, then a bankruptcy could be a good option for you. Especially for all those people that have struggled with a debt management plan or individual voluntary arrangement.

IVA (individual Voluntary Arrangement) These are much better than they used to be. The reality is today that if you have a minimum debt level of £7k plus and a disposable income of £80 a month then you are able to apply for an IVA. An IVA is a legal agreement between you and your creditors, put together by a licensed Insolvency Practitioner or Chartered Accountant that practices in insolvency. Your creditors are made an offer which is based on your income abilities to repay an amount of money over a 5 year period. Providing 75% of the total amount of debt agrees to the proposal being made then the remaining 25% are committed to agree to the arrangement. These arrangements usually run over a 5 year period. It is fair to say that you can look at an IVA like an interest free loan payable monthly over 5 years. The only problem is that if your income increases or you have any changes to your circumstances then you will have to pay more into the arrangement. We often find that an IVA can be used to get creditors under control and all standing in line. Once this has taken place it is quite feasible for a debtor to make an offer to creditors which is equivalent in fiscal value by a 3rd party who will make a one off payment to clear the IVA.

Debt management Plans- These are very effective in signalling to your creditors that you are in difficulty. The Debt Management provider will contact all of your creditors requesting that interest is frozen on the accounts and for our creditors to be made aware that something has happened but you have taken action to do your best to manage your debts. The debt management plan is not recorded anywhere. Unlike an IVA which is a legal agreement, stamped by the court and recorded on the insolvency register. This last for 5 years. In our modest opinion we would say that a Debt Management Plan is a good short term solution which doesn’t affect any assets that you have such as a car of finance or a property that you own. It is a good way of managing creditors until you are in a position to apply something a little more solid. A lot of homeowners choose a Debt Management plan over an IVA purely because they will not be restricted from selling a property, unlike a bankruptcy or IVA where you will need authority from their legal department to sell.

So these are the options apart from specialist negotiation which is often required when the trust has been breached between creditor and debtor. Sometimes a creditor can apply hostile approaches towards a debtor simply because they are fed up with trying to deal with them.
We can assist in matters like this but costs will apply and you will need to complete the 3rd Party authority in which you will be enabling an officer of www.bankruptcy.co.uk to speak on your behalf.

The short answer to this is ‘yes’ though it usually only happens if the IVA company specifically requests it. If you are not happy with this state of affairs, you could submit a form 7.1a (or N244) Application Notice to the court in question asking for the IP or Trustee to be changed. This will go before a Judge and provided you have a good reason for your request, it may well be granted.

Feel free to call us on 01425 600129 or 07479 739139 / 07894 481175 with any further bankruptcy questions or for bankruptcy help.

As a business owner is there an informal business debt management plan that I can enter into in order to contain my business debt so that I can continue to trade? I have a positive business but have been subject to staff theft and I now have debts that I need to clear up. I need some type of arrangement for 3-6 months so that I can get my affairs in order. Can you help?

Ordinarily Debt Management Companies do not offer such plans. They will suggest an IVA or a CVA (company voluntary Arrangement). The latter might sound attractive, but it’s a long term plan and we don’t think it’s suitable. All considered, it might be best if you approached your bank for some type of credit facility. The upfront cash would settle the outstanding debts and a bank will be flexible re repayment.

We would be pleased to speak to you to establish the facts and see if we can mediate an informal arrangement, but it is often the case that companies want a formal arrangement in place.

Bankruptcy UK offers bankruptcy help across the board and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.

I’ve been in an IVA for 4 years but it’s going to fail … the variation meeting agreed to fail the iva and issue the termination notice but the supervisor has taken no further action… what is the most likely outcome?

When you exit an IVA prematurely, the individual creditors reserve the right to pursue you with a view to setting up separate payment plans. Contrary to popular belief, there has not been a steady flow of money going to the creditors from the outset, as the IVA company would have captured its fees from the first 20 payments. It might therefore be in your best interests to seek the protection of bankruptcy. Call us on 01425 600129 to discuss options.

Bankruptcy UK offers bankruptcy help across the board and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.


I am an NVQ assessor earning 24000 a year and really need to know should I go bankrupt?  I have no property or savings and owe approx 25000 on loans, credit cards and overdrafts. Is bankruptcy right for me? However there are so many questions and reasons that are confusing me I just don’t know which way to turn.

I am also caring for my father who is really unwell so my life feels like its running slightly out of control. I have a pension and generally thought I was well balanced and would never be in a position where I would be asking myself the question should I go bankrupt.

If you could please call me in the evening I would like to run through some options with you.

Should I go bankrupt





Most ordinary people can feel as though they have no control over what is happening to them. This is normal in the society that we live in and what is generally expected of us. Emotions play a huge role in the decision making process. I can see that you are caring for your father and although its a direct question which is very sensitive but to be able to give you clear concise information we need to know if you could be expecting any inheritance or windfalls in the foreseeable future?

Bankruptcy or the term  insolvency takes place when you can no longer support your monthly commitments i.e. credit cards, loans, etc. If after completing your income and expenditure we find that you can no longer support both your loans and an acceptable lifestyle.

If the situation is simply that you have an exposure of £25k but are going to be in a position in the foreseeable future where you will be in a position to pay these debts off then you would be wise to negotiate terms with your creditors explaining your circumstances and requesting a break from interest payments and a reduced monthly payment until you are in a position to repay them in full. Most of the time creditors are sympathetic to circumstances such as these because they know that will be paid eventually.

We would talk you through a number of possible solutions, including bankruptcy. To give you accurate information, we would need to know more about your circumstances – give us a call on 01425 600129 and we will gladly talk you through everything.



Bankruptcy UK-Debt Solution Bankruptcy Experts

Bankruptcy UK-Debt Solution Bankruptcy Experts