The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
AOL Money UKOnline dating fraud 'cost victims £27 million over last year'AOL Money UKNever send money or give credit card or online account details to anyone you do not know and trust. :: Wait until you feel comfortable with someone before telling them your phone number, place of work or address. :: Be extremely wary about removing ...and more »
More blood please, we're advisersFT AdviserMoney Management is the professional's independent adviser, winning 50 awards over the years. It contains the renowned Money Management fund statistics, unique surveys and much, much more.
Mirror.co.ukWill I have to choose between my home and my dogs?Mirror.co.ukClearly the bigger the deposit, the more choice and better the mortgage rate. So location is also important when looking for your first home. The Lincolnshire property market is varied, with average prices differing between the locations by as much as ...
AOL Money UKHome repossessions drop to 11-year lowAOL Money UKThe number of homes being repossessed fell to an 11-year low in 2015, figures from mortgage lenders show. A total of 10,200 repossessions were recorded across the UK in 2015 - more than halving from the 20,900 cases recorded in 2014, the Council of ...Money Video round-up: mortgage rates, bank accounts, energy bills and free stuffThe IndependentNearly half of people 'would lie to get a mortgage'BT.comall 56 news articles »
Workers' capital must support the interests of working peopleLeft Foot ForwardTherefore it is also down to the collective efforts of union members that working people in the UK are plugged into the global capital markets, and the companies that utilise them. Our pension funds own shares in companies across the world, as well as ...
Have you met...
Latest Members:


RinjaniHalomi


doaanile7


donjuancuk


jakibadr


Sloane Beck


jappleseed


LynneW72

 

Insolvency

INSOLVENCY

The latest bankruptcy and insolvency figures make for gloomy reading. In the first three months of 2009 19,062 people went bankrupt and another 10,713 took on individual voluntary arrangements (IVAs) according to the government's Insolvency Service. Those are the highest ever figures as personal debt, rising unemployment and business failures take their toll. The number of companies going out of business fell but the figure was still half as many again as a year ago.

You are insolvent when you can’t pay your debts. There are various options for handling that situation. IVAs, Debt Relief Orders, Administration Orders and Bankruptcy are possibilities for individuals in financial trouble. Get advice from Citizens Advice (look for details of your nearest one in the phone book or online at www.citizensadvice.org) National Debtline on 0808 8084000, CCCS on 0800 1381111 or www.cccs.co.uk 


IVA - Individual Voluntary Arrangement: This is a formal agreement through the county court. You agree to pay a certain amount off your debts each month for a specified length of time such as five years. The amount that you still owe at the end of that time is written off. Your IVA is set up by an Insolvency Practitioner. The downside is that you need a reasonable amount of money each month to make your payments, people you owe money to can stop the IVA by refusing to agree to it and the Insolvency Practitioner’s fees can be high.

Debt Relief Orders are alternatives to IVAs or bankruptcy. They are for people with less than £300 worth of assets, less than £15,000 in unsecured debts, who can only afford to pay up to £50 a month towards those debts and don’t own their own homes. Not many people will qualify as most will have assets worth more than £300.(You can own a car worth up to £1,000.) You pay £90 to your local Citizens Advice Bureau or other advice agency. The application form is filled in online. If you do get a Debt Relief Order it lasts for 12 months and at the end of that time you are no longer liable for the debts included in the order.

Administration Orders: If someone you owe money to has already taken legal proceedings against you in the county court you might be able to apply for an administration order. But your total debts must be less than £5,000. All your debts are added together and you make one payment a month to the court which then shares it out among your creditors. If the court grants you an order your creditors can’t take any further action against you.

Bankruptcy is the last resort. You can apply to the court to be made bankrupt if you owe at least £750. Someone you owe at least £750 to can apply to have you declared bankrupt. If you apply to be made bankrupt you pay the court fees which amount to several hundred pounds. If someone else petitions to have you declared bankrupt they pay the fees. The idea is that your assets are taken and sold to repay your debts. It may seem like a good way out as you are usually bankrupt for just a year, at the end of which time you are discharged from bankruptcy. But think about it carefully and get advice as you lose some of your assets which could include your home if you own it. You may have to go on making monthly payments for up to three years after you are discharged, or even longer if the court decides on a longer period. You can’t be a company director or hold high office such as a politician or Lord Mayor while you are bankrupt and you can’t get credit. It can be a good solution if you have no assets, owe a lot of money and can’t see any way of paying it off. Once you are bankrupt your creditors can’t take any further action against you.

Get advice before taking any action. There may be other options such as getting creditors to agree to write off your debts, making a lump sum payment in ‘full and final settlement’ of a debt, or persuading all your creditors to accept small, regular payments to clear the arrears if you can afford them. If you do have at least £100 a month to pay towards your debts and you owe at least £5,000 you may be able to set up a Debt Management Plan. The advice agencies above may be able to help you do this for free.

Businesses that are insolvent may go into administration, liquidation, bankruptcy or be wound up. Call Business Debtline for advice on 0800 197 6026. 

You can find more information about insolvency, bankruptcy and the alternatives at www.insolvency.gov.uk


Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks