Advice from the Insolvency Service

Insolvency and bankruptcy are words which many people are frightened of; they see bankruptcy as a shameful thing to happen and so deny themselves the relief from unrealistic debt levels and repayments which the law provides for and many options exist before bankruptcy should be considered.

Here is what the Insolvency Service has to say, taken from their own website:

“It is vital that any person or any company concerned about their financial position should seek advice as early as possible. Insolvency can often be avoided entirely by taking early action.”

The first thing to understand is that there are alternatives to becoming a bankrupt and all that entails; a sense of shame, failure, loss of your home and social standing.  The second point to appreciate is the sooner you seek advice the more options you are going to have and the better the prospect for a much more successful outcome. 

In any event the Insolvency Service is crystal clear – seek professional advice.

A professional adviser will be able to assess your financial situation, explain what the options available are and recommend a solution which you can then implement.  Before bankruptcy should be considered there are other alternatives such as arranging agreements voluntarily with your creditors to reschedule your debt repayments and if this does not work, the law provides for other measures to be implemented.

An IVA is a solution laid down by law for the rescheduling of your debts and the fixing of both a monthly repayment schedule and a fixed term for the duration of the agreement which can vary but is usually around five years.  Any outstanding debt is written off and it is important to realise this is not bankruptcy – you keep your home if you stick to the agreement.  And remember all of this is provided for by law as a less draconian alternative to declaring yourself bankrupt.

The fundamental piece of advice is to seek professional help soon and to follow the advice you receive – the sooner you do this, the sooner you will be free of unreasonable financial burdens imposed upon you and your family.