So what happens when you have pinned all your hopes on an IVA and all of a sudden you are told that it has been refused?
You are back to the beginning again. But what makes it worse is the Insolvency practitioners that have failed you, generally aren’t interested any more.
Now your options are reduced and the fear of loss becomes highly apparent as well as knowing that there is less time than before.
You will have had time to think about what has happened and could be thinking that certain creditors didn’t take the offer that seriously, or you may feel that they dismissed it out of hand when there was still scope for improvements or slight modification.
Have you got the energy and the mental resolve to keep going and seek to find another way of avoiding bankruptcy and potentially losing a home or assets?
At bankruptcy.co.uk we provide help and assistance to solve problems like this when we encounter them.
Just recently we were successful in gaining an IVA for a client who had previously had an IVA refused.
We could see that the previous practitioner had missed critical small things that would have made a significant difference to the outcome for that client. The client had already spent in the region of £15,000.00 with the former Insolvency practice and was mindful that these monies were lost and really didn’t want to repeat the same process again unless they were sure they had a chance of acceptance.,
Our job was to gather the critical information from the client as the fundamental starting point. Check the finances as far as affordability of the proposal was concerned, and go through the creditor list to ensure that we were able to make contact with the specific person who had the voting rights for the proposal.
Initially the client just wanted some breathing space so we write to all the creditors and made them aware of our appointment and also arranged for a payment holiday for 3-6 months where £1.00 a month is being paid to them until the new proposal was ready for circulation to creditors.
This allows a client additional head space that is so crucial in times like this. (We have to be able to see where we are going, and we have to believe that there is a chance of getting there).
Next was the new drafting of the IVA proposal, but instead of just send it out, calls were made to the decision makers in advance to explain what we were about to do and to gauge where their minds were at in respect to the agreement to an alternative proposal. This is a critical feature. Without these calls any practitioner is leaving the outcome to chance.
We attempt to overcome the objections and ensure that the proposal being made is really the best it can be for both the creditor and the debtor because theres absolutely no point in putting an over ambitious proposal together if the likelihood is that it is going to fail. Because in these instances the only people that gain from it is the insolvency practice that has charged the fees in the first instance. There is no benefit to creditors or the debtor at all. In fact it positively discourages the debtor from making progress at all.
In this particular case study the new IVA was accepted and the debtor and his family have been ablate retain the family home and carry on with their business and avoid bankruptcy and the losses that would have occurred if we hadn’t have been successful.
Business bankruptcy and your options
As a business owner you want to know your options when your business is trading in unprecedented troubled times. We can see that the high street is changing before our very eyes.
With PLC, restaurants and Coffee Shops entering into company voluntary arrangements are examples of companies that are struggling to survive with the outcome probably being that their brand will disappear from our high streets altogether. Fast forward the time another 6 months and we are going to be in a very different place altogether.
Being in business is always tough. Having the right team in place along with good professional advisors is always a bonus. But can you still count on those people to deliver the services in the way you want and need them to.
We are seeing the start of private lenders instructing law firms to collect on their behalf.
This starts the thread of negativity and fear for business owners just wanting to get through the troubled period and out the other side.
Applications for bankruptcy are still being heard and for business owners who have survived this far and simply need a bit more time to allow for investment monies to enter their business or for trade to restart will be held up unless they are able to communicate and respond with the correct information at the right time. Failure to find the right solution will be critical to the outcome.