In order to properly advise about Insolvency matters, one needs to understand what options are available to those who cannot pay their debts and/or owe money to their Creditor. We help you understand all the relevant considerations and set your objectives, so you can make an informed decision. We cater our services to meet your needs, so we aim to provide accessible and affordable high quality legal services to all our clientele.

Creditors will receive practical advice about their prospects of receiving the money due to them, we therefore offer commercial advice, so the can assess the realistic chances of recovery the money due to them. Debtors who own a property jointly can be complex, as usually the debt can only be attached to the debtor’s share.

In order to do this, one needs to decide whether it is viable to proceed and this initially done by assessing the debtors’ assets. If the debtor does not have any assets, then there is less chance of recovering your debt. One of the options open to debtors is for them to apply for a debt relief order. They may be able to apply for a debt relief order, if their debts, income and property below a certain amount, as this is a cheaper alternative to bankruptcy.

Creditors must act in a prudent way, as for some debtors without assets, it may be beneficial for creditors to make the debtor bankrupt, as this allows them to make a fresh start after a year. The debtor will have the money he owes written off and creditors must stop most court action to recover their debt.

One the other hand, debtors who have assets to discharge their liability are aware that bankruptcy places serious restrictions on the property and activities on a bankrupt. Failure to comply with the insolvency rules can lead to adverse action being taken against debtors. For a creditor to make you bankrupt, the debtor must owe at least £5,000 as an Individual (as opposed £750 for a company).

The threat and consequences of bankruptcy are serious and the situation can be very worrying.

The disadvantages to the debtor, an idea are that:-

If their income is high enough, they can be made to make payments towards their debts for 3 years;

They will find it more difficult to take out credit and their credit rating will be affected for 6 years;

If they own a property, it might have to be sold;

• Some possessions may be sold, for example, your car and any luxury items;
• If the right age their pension savings may be taken;
• Some professions do not allow bankrupts to carry on working;
• If they own a business it might be closed down and the assets sold;
• A bankruptcy may affect their immigration status; and
• The bankruptcy is usually published publicly.

For creditors the failure of someone to pay their debts to is of great concern and often has a financial effect, so we explain:-

• What steps you can take in recovery of a debt
• How to make someone bankrupt
• What happens to the money owed to you
• What steps a trustee in bankruptcy may be able to take

We try to focus on the recover money and what assets are available to pay off the bankrupt’s debt. The law provides a framework for this process, so that is largely out of our hands. Information relating to the rules and procedures of the law of bankruptcy as it affects people owed money by people in financial difficulty are contained throughout the site.