If you own your own business we could help you:
- Reduce repayments to creditors
- Stop interest and charges
- Help you to continue to trade
- Avoid bankruptcy
Case Study
Martin contacted last year; he owns a video rental shop and had seen a decline in his business due to the availability of movie downloads on the internet. Martin had £30,000 in credit cards and loans; he also had £13,000 outstanding of tax and VAT. Martin knew that he had more going out than he had coming in and thought he was going to have to declare himself bankrupt because he couldn’t pay all his bills on time. When we spoke with Martin we could see that if he could reduce his repayments to his creditors he could still trade and make a reasonable income, so we reduced his creditor repayments from £1050 to £400 per month. We also helped him to make a payment arrangement with his tax and VAT, so within the space of 30 minutes we were able to give him an option that improved his cash flow and helped him avoid bankruptcy.
This is similar to a Personal Debt Management Plan and operates in much the same way. Once we have evaluated your income and expenditure, and established a repayment plan which you can reasonably expect to manage, we will negotiate with your creditors. Even if you have court judgements, we can renegotiate these problems and get court approval on the amount you have been ordered to repay.
Generally, your creditors will also stop chasing you for the payment, and will liaise directly with us. It is also possible to have interest and charges frozen, while you regain control of your finances.
Best of all, a debt management plan is flexible, and allows for unforeseen circumstances to be taken into account, should they arise at a later date.
Bankruptcy
What is bankruptcy?
A court procedure where a trustee is appointed to realise your assets. Once a bankruptcy order is made against you your financial affairs will be controlled by the Official Receiver/Trustee, your financial situation is made public and your employment may be at risk if you work in some professions.
How does it work?
All your assets (except personal effects and pensions) will be realised to pay back your creditors. Bankruptcy normally lasts for 12 months (but can be extended by between 2 and 15 years in certain circumstances). You may have to pay the trustee some of your income for up to 3 years. The equity in your house (unless it is very small) will need to be paid to the trustee, who could seek repossession and sale of your home.
What else should I know?
Bankruptcies are advertised in the local press, so your situation will be made public. Your credit rating will be affected before and after the bankruptcy, making it harder for you to raise new borrowings. You will automatically be disqualified from being a company director while you are bankrupt.
To find out if this could be an option for you, please call us on 0800 121 48 63 or fill out the form below and an advisor will be in touch with you.
