Dealing with debt
Debt is a fact of life for many people. Loans are often required when setting up a home, buying a car, investing in equipment to be used in a new business enterprise etc. These loans are a useful way to make progress in life and so long as they are affordable can enable you to pursue a new business idea or create a separate source of income through investments in property. However, for some people, debt can become a problem when there is not enough money to make the repayments on the debt or if a new business venture runs into cash flow difficulties or an investment decision goes wrong. Many people have debts which they are not able to manage and there are various things which can be done to assist.
Often, we are contacted by clients who purchased property during the property boom of 2006/2007 who now find themselves in substantial negative equity. They may have lost their job or their business may have failed and they are simply not in a position to continue making repayments on an asset which is not worth what they paid for it. In these circumstances, bankruptcy can be a useful way of clearing debts which are impossible to repay, allowing you to make a fresh start.
For clients who have manageable debts, but need to have further time to pay it can be worth exploring an IVA (individual voluntary arrangement). This can lead to a better return for creditors and can, in some circumstances, be a better outcome for the client than bankruptcy. Some people still feel a certain stigma attached to bankruptcy and they may prefer to try to make an arrangement with their creditors to repay a portion of the debt, which is affordable, rather than enter bankruptcy.
There can be complications when the family home is at stake and we can assist in giving you advice about the best way to proceed and, if the circumstances are right, refer you to an insolvency practitioner who can give further advice about entering into an IVA.
It always helps to talk to someone if you are experiencing problems with debt and we can give you useful advice to relieve you of some of the pressure and worry associated with debt problems.
We also can provide advice about company insolvency and the best way to deal with difficulties when running a limited company. It is important to take advice early, rather than that the situation spiral out of control, as there are certain standards required of company directors when running companies. Often, it is possible to find a way to restructure the debt in order to allow the company to continue trading and to provide light at the end of what seems to be a very dark tunnel.
If you would like to have a no obligation, confidential chat with any of our solicitors regarding your financial circumstances, please get in touch. We will be pleased to help.