Individual Voluntary Arrangement

Recent Hike in Interest Rates Causes Concern Current Fees The Consequences of your Property Linked to your IVA Proposal IVA Costs Again Raised Their Head Considering an IVA, There Could be a Better Alternative Restrictions on Business Finance Recent Hike in Interest Rates Causes Concern It would appear that interest rates in the future could be higher, thus putting further pressure on family income. Many people in the past have re-mortgaged to get themselves out of financial problems, with property prices falling and interest rates higher and more importantly stricter borrowing by mortgage providers means that this will be more difficult in the future. Many people are in disarray as to how they are going to be able to service their current debts. This issue appears to be a Hot Topic and your views would be welcomed. The Consequences of your Property Linked to your IVA Proposal There appears to be more concerns over this issue than any other. Many people have entered IVAs in the past and will in the future, the ones with IVAs nearing an end find themselves having to have their home revalued with 75% of the equity going to the creditors as this forms part of the original proposal. Many feel that they will be unable to raise the necessary funds to finalise their IVA because of their past credit history. Many feel that the loan restrictions on re-mortgages and rates will not allow them further funding. Many feel that if they could re-mortgage, any new interest rate would mean that they could not service further borrowings. These are only sum of the issues concerning people considering or in IVAs at this time. Debt Direct Ltd feels that we can provide a better alternative and a better outcome beneficial for both creditor and debtor alike Your views and others on this or any other matter would be appreciated and any help or advice can be had free of charge from Debt Direct Ltd. IVA Costs Again Raised Their Head We have been inundated with parties concerned over the cost of an IVA. Firstly many people need to be properly assessed as to the best route of resolving their debts, many companies without much detail opt for an IVA (Informal Voluntary Arrangements) without explaining the pit falls that they could encounter. The majority of enquiries relates to the aftermath of entering an IVA, it is evidently clear that many issues should have been addressed before they entered a binding agreement, Debt Direct Ltd advises all parties to seek legal advise before this commitment is formalised. The issues vary from affordability at a later date to the cost of the IVA and the administration, clearly people have worked out that the I.P and the administration costs in many cases are higher than the return to the creditors. This is itself can also have a knock-on effect in that many IVA proposals could be rejected. This issue appears to be a Hot Topic and your views would be welcomed. Considering an IVA, There Could be a Better Alternative We at Debt Direct Ltd act on the interests of both debtor and creditor in finding a solution to the debt issue. We are very much aware and as so have been able to vastly reduce costs allowing a better acceptance rate. When formulising an agreement between creditor and debtor, one has to have clear insight into not on the debt issue but also the employment status and whether adverse publicity, be it; the IVA register or other will impede. Many people are concerned that the stigma of an arrangement could reflect badly on their status and therefore it is important that one finds the best solution available to meet their needs. Just recently a client who had financial problems was assisted by way of an Informal IVA sealed by contract, this meant that the creditors had accepted a sum and given a discount on the basis that the client fulfilled their obligations over a period of time. E.G. The creditors agreed to give the applicants a 50% discount on their debts. The outstanding debts were in the region of £40,000, this meant that the debtor had to find £20,000 over a 60 month period by way of monthly contributions or a combination of monthly contributions and a final payment. The structure was important here as the current financial climate meant that the debtor would have clarity and it was in their interest to finalise the payments at the earliest possible date. Many insolvencies are left open ended, whereby, a substantial amount of money is taken to cover the administration leaving an imbalance. There is also the issue over re-mortgage and this is a Hot Topic today as many people are asking the question as to what will happen if they cannot raise further moneys on their property in 4-5 years time when they have to revalue, they have further concerns in that should they be able to obtain further moneys, how are they going to service this? Once again Debt Direct Ltd prompts parties entering an Individual Voluntary Arrangement to seek legal advice before they sign a banding agreement. Concerns are growing by the day and we are giving you the option to give us your view as to how we at Debt Direct Ltd can assist you further. Restrictions on Business Finance Turmoil in the finance and mortgage sector has resulted in restrictions and tightening of criteria for funding has left many businesses in disarray with nowhere to go. With the tightening of funding by various high street banks pressure is now more than ever on smaller to medium size companies as well as the individual self-employed. Debt Direct Ltd specialises in negotiations with Customs & Excise, Inland Revenue, VAT, PAYE and other creditors to reach an amicable agreement whereby the continuation of the business can be maintained. Debt Direct Ltd promotes Company Voluntary Arrangements (CVA’s) and business problem solutions from refinancing to current cash flow problems and restructure. Many small business failures are the product of marital or partnership breakdowns. Our associated services cover Forensic Accountancy, Licensed Insolvency Practitioners and general Legal Advice, therefore we are a one stop advisory service. To address your problems please forward your contact details whereby one of Debt Direct Ltd’s team will phone you back to take matters further. Current Fees Current fees include I.P's administration costs and management costs and take up a large amount of the contributions made by the debtor. Many creditors today are unhappy with these costs. Debt Direct Ltd has found a better balance in that costs could be curtailed to I.P's fees and realisations (%). The current situation is that I.P's where possible frontload their costs, therefore should the agreement fall apart at a later date the losers would be the creditors. At Debt Direct Ltd we feel a better solution and balance would be that all moneys are treated on an equal basis whereby costs of the Insolvency become an apportionment within contributions, should the IVA fall apart at a later date, then the creditors at least would receive a dividend. At Debt Direct Ltd we feel that a better solution would be by Informal IVA whereby the creditors could decide a structure whereby giving the debtor an agreed discount on performance. E.g. If the debts were say £40,000 and it was agreed that the creditors would accept 50% then the agreement would be structured round £20,000 over a period of 60 months or less giving the debtor the opportunity to raise moneys or pay additional payments so that their agreement can be terminated early. All incoming contributions would be to an automated bank account on behalf of the creditors and debtors whereby 10 days after receipt each creditor would receive an apportionment of the agreement in line with debt ratio. This itself would reduce overall costs as the I.P. or administration would only have to intervene should there be any problems. Please add your comments to this topic below: Your Name Your Email Your Comments

An IVA is an Individual Voluntary Arrangement whereby the creditors could accept a proposal of payment normally over 60 months, any outstanding indebtedness is normally written off by the creditors.

There is also a possibility of a third party lump sum being offered to the creditors in respect of the applicant which could again be accepted by the creditors as a full and final settlement.

This is effectively an alternative to bankruptcy

An Individual Voluntary Arrangement could be completed in as little as 12 weeks through to 60 months depending on circumstances.

Financial Rescue Package (Individual Voluntary Arrangement)

Debt Service Advice is currently modifying its services to further assists applicants who are considering an Individual Voluntary Arrangement. Debt Direct Ltd strives to seek a balance between creditors and debtor alike where both can live in harmony and reach a realistic solution.

Debt Service Advice can approach creditors on behalf of the debtor on 2 basis: One informal, the second being a Formal, both are based on a Voluntary Arrangement agreement. An informal Voluntary Arrangement is whereby Debt Direct Ltd would try to achieve an agreement with the creditor(s) in respect of the outstanding debt and borrowings.

This can be achieved at times as creditors would not have the same insolvency fees to consider, thus their return would be greater. The second is by way of a Voluntary Arrangement proposal which is prepared for consideration by all creditors and ratified by the court.

In recent months creditors are seeking a larger return on their debts and thus the informal IVA now appears to be taking centre stage.

These are two nice responses we’ve received from recent clients

“I felt depressed with nothing to live for.”

“When contacting Debt Direct Ltd I was at a low and struggling with Debt, it had gone further in that it was affecting my marriage and my children.

Debt Direct Ltd did not judge me in any way and treated me like a human being, after I had summarised my problems I was told not to panic.

From that first day of contact, Debt Direct Ltd have been at our sides and we have been able to re-establish ourselves through an IVA but better than this was that our mortgage arrears have been restructured so that we can now live in peace and harmony and a fordable lifestyle. One can say we are a little bit thinner but we can live with that as it has left us happy within ourselves.

Anyone in a similar position should contact Debt Direct Ltd for help be it Debts, IVA or bankruptcy. They are not judgemental and install a belief that further borrowing is not the best route.”

“I had nowhere to go”

“Having gotten myself into mortgage arrears to the point of a repossession notice and with the possibility of eviction I came across Debt Direct Ltd through the local Ad Mag (newspaper).

I was in a mess but from that first call I felt a weight had been lifted from me. Debt Direct Ltd contacted my building society and arranged a repayment schedule to bring my arrears into line. It did not stop here, I had many other Debts for which I could not make good.

Having completed an Income & Expenditure for Debt Direct Ltd, they were able to establish what options I had, and it was thought that the best option was an IVA. My Debts were over £32,000, however my creditors have agreed a monthly contribution of £280, far less than I was paying my creditors.

It now looks like we can have a summer holiday and life is on the up. I would like to say a big thank you to the Debt Direct Ltd Team who have been wonderful. “

We do not give False Hope.

The above are extractions from the letters received without the customers details for the sake of their privacy

Questions That We Frequently Come Across

IVA Q) How long will an IVA (Individual Voluntary Arrangement) last?

A) An IVA normally lasts up to 5 years / 60 months.

IVA Q) Can I afford an IVA (Individual Voluntary Arrangement)?

A) This will be dependent upon disposable income.

Insolvency Q) Will I lose my home?

A) Normally your home will be fully protected unless you default resulting in bankruptcy.

IVA Q) Will an IVA (Individual Voluntary Arrangement) affect my credit rating?

A) Once an IVA has been approved you will be unable to borrow and it will have an affect for a period of time on your credit rating.

Insolvency Q) Can I have a bank account?

A) You can run a bank account in the normal manner.

Insolvency Q) If I had a wind fall (e.g. Lottery Win) will I have to make a payment to your creditors.

A) Any wind fall or gift should be brought to the attention of your Insolvency Practitioner who is overseeing your affairs.

Insolvency Q) Should I have a change of circumstances, what should I do?

A) Any change of circumstances should be addressed through your Insolvency Practitioner who will guide you.

Insolvency Q) Do I have to keep updating my affairs?

A) The Insolvency Practitioner will require you once a year to submit any change in circumstances that may have occurred over the previous 12 months.

Insolvency Q) What happens if I cannot maintain the payments?

A) The formal agreement would be binding and therefore if one finds themselves in a position whereby as change of circumstances they cannot fulfil their agreement payments, then they should seek advice at that time from their Insolvency Practitioner. It is possible that your Insolvency Practitioner could apply for a variation of your agreement.

IVA Q) Is an IVA bankruptcy?

A) An IVA is an alternative to bankruptcy, without the stigma and restrictions of a bankruptcy.

Insolvency Q) What costs would I encounter?

A) Costs within an IVA are built into the premiums paid by the applicant, many companies state that there are no costs and this is not the case. There are ongoing discussions within the Insolvency Industry to reduce the overall costs which will allow creditors to be more sympathetic, resulting in more approvals.

IVA Q) Will an IVA affect my property?

A) Your property will only be affected if it is within your IVA proposal. An IVA proposal being accepted could in certain circumstances affect the equity within your property at a later date and therefore it is imperative that you are aware of such.

IVA Q) What is the difference between an IVA and Debt Management?

A) An IVA is an Individual Voluntary Arrangement based on an agreement between 3 and 5 years and supervised by an I.P. (Insolvency Practitioner). A Debt Management is an unregulated agreement that could take much longer to conclude and it is unlikely you will receive a similar discount to an IVA agreement.

IVA Q) What are the costs involved in an IVA?

A) Many companies state that there are no costs within an IVA, this is not the case as any costs are built into the premiums paid by the applicant to the I.P. The I.P. has a set up cost and fee and will have an overall cost for managing the proposal, resulting in a reduced dividend to the creditors.

IVA Q) What is the estimated timescale of an IVA?

A) Timescale will depend on the applicant providing all the necessary documentation to allow a proposal to be placed before the creditors. The proposal can be in various formats, however the normal is between 3-5 years (36-60 months) unless a third party payment is injected as a capital sum. If this was to happen and accepted by the creditors, then the timescale would be much reduced and could go be as little as 3 months.

IVA Q) Is an IVA is subject to creditors approval?

A) An IVA proposal is subject to approval by the creditors and requires a 75% acceptance, should an acceptance not take place then a variation or modified proposal could be presented for consideration.

IVA Q) Will an IVA affect my personal banking?

A) An IVA will almost certainly affect your personal banking in that you will be restricted to further borrowings set by your I.P. You will be unable to utilise bank accounts that form part of your IVA proposal.

Insolvency Q) Is there an IVA register?

A) Yes

IVA Q) What happens if I cannot complete my IVA agreement?

A) Should you find yourself with a change of circumstances, it is possible that your I.P. on your behalf could request a variation to your IVA agreement. The alternative being bankruptcy.

Insolvency Q) Is an IVA suitable for business purposes?

A) There are provisions for a business IVA for sole traders and businesses alike and work on similar lines to that of an Individual Voluntary Arrangement.

IVA Q) Will an Individual Voluntary Arrangement affect my pension?

A) An IVA will only effect your pension if it forms part of the proposal agreed by the creditors.

Insolvency Q) Is there any legislation covering an IVA?

A) Legislation in respect of an IVA is covered by the 1986 Insolvency Act and the 2000 Insolvency Act.

IVA Q) What is the purpose of an Individual Voluntary Arrangement?

A) The purpose of an IVA is that, it is an alternative to bankruptcy without the stigma of bankruptcy whereby one can make a proposal to existing creditors that would result in a better return for the creditors against that of a bankruptcy.

Insolvency Q) If I enter an IVA will I lose my personal assets?

A) Personal assets will have to be declared to the IP (Insolvency Practitioner) who will decide on what should be inclusive within the assets of any proposal presented to the creditors.

Insolvency Q) What does an IVA do?

A) An IVA is beneficial in that a one monthly contribution is paid to the I.P who in turn will distribute it to the various creditors. At the end of the IVA any outstanding debt is normally written off making one debt free. It further removes the hassle of creditors and debt collectors calling and more importantly it lets one get their life back, it is also an alternative to bankruptcy without the stigma.

Debt Q) What proportion of debt can be written off?

A) Many companies promise what they can not put into practice. Creditors are more aware and are seeking a higher return in respect of the debt. There are no formal guidelines and normally it will be on a case by case. It is worth noting that it will be the creditors who decide any proposal and what debt they are prepared to discount. As a guideline it will be very much based upon disposable income.

Insolvency Q) After the completion of an IVA, am I debt free?

A) If you fulfil your IVA agreement then any debt is discounted (See 1986 Insolvency Act).

Insolvency Q) How is an IVA prepared?

A) An IVA is based upon the information received from the debtor, at times this is cross referenced with various agencies, property valuations and income and expenditure, there also maybe other issues that need to be taken into consideration such as insurance policies or hirer purchase.

The I.P has to have an overall view before he can make recommendations or prepare a proposal for consideration by creditors.

IVA Q) How do I go about setting up an IVA?

A) Firstly, you must complete a financial apprisal document covering your income & expenditure as well as your assets and once received you will be advised on the best solution available and how you want to go about it.

IVA Q) In the main, how long does an IVA last?

A) It normally lasts for 5 years (60 months) but this can vary as it depends upon the proposal put to the creditors.

Insolvency Q) How much will I have to pay in monthly contributions?

A) This is dependant upon circumstances, the amount of debt owed and is balanced with your income and expenditure.

Debt Q) What alternatives are available covering my current debts?

Recent Insolvency Questions & Answers

Insolvency Q) Can I afford an IVA (Individual Voluntary Arrangement)?

A) An IVA agreement will be dependent upon disposable income.

Bankruptcy Q) If I become bankrupt or enter an IVA will I lose my home?

A) Normally in an IVA your home will be fully protected unless you default resulting in bankruptcy.

Insolvency Q) Is there any Insolvency legislation?

A) IVA legislation relating to Insolvency can be found in the 1986 & 2000 Insolvency Act’s.

Insolvency Q) Will an IVA (Individual Voluntary Arrangement) affect my credit rating?

A) Once an IVA has been approved you will be unable to borrow and it will have an affect for a period of time on your credit rating.

Insolvency Q) Can I have a bank account if I enter an IVA?

A) Whilst in an IVA you can run a bank account in the normal manner.

Insolvency Q) If I was in an IVA and had a wind fall (e.g. Lottery Win) will I have to make a payment to creditors.

A) Any wind fall during an IVA or gift should be brought to the attention of your Insolvency Practitioner (I.P.) who is overseeing your affairs.

Insolvency Q) If I was in an IVA or bankruptcy and should I have a change of circumstances, what should I do?

A) If in bankruptcy or an IVA any change of circumstances should be addressed through your Insolvency Practitioner who will guide you.

Insolvency Q) If in Insolvency do I have to keep updating my affairs?

A) The Insolvency Practitioner overseeing your IVA will require you once a year to submit any change in circumstances that may have occurred over the previous 12 months.

Insolvency Q) If I was in an IVA what would happen if I cannot maintain the monthly payments?

A) A formal IVA agreement would be binding and therefore if one finds themselves in a position whereby as change of circumstances they cannot fulfil their agreement payments, then they should seek advice at that time from their Insolvency Practitioner.. It is possible that your Insolvency Practitioner could apply for a variation to your IVA agreement.

Bankruptcy Q) Is an IVA bankruptcy?

A) An IVA is an alternative to bankruptcy, without the stigma and restrictions of a bankruptcy.

Insolvency Q) What costs would I encounter if I entered an IVA?

A) Costs within an IVA are built into the premiums paid by the applicant, many companies state that there are no costs and this is not the case. There are ongoing discussions within the Insolvency Industry to reduce the overall costs which will allow creditors to be more sympathetic, resulting in more approvals.

Insolvency Q) Will Insolvency affect my property?

A) Your property will only be affected if it is within your IVA proposal. An IVA proposal being accepted could in certain circumstances affect the equity within your property at a later date and therefore it is imperative that you are aware of such.

Insolvency Q) What is the difference between an IVA and Debt Management?

A) An IVA is an Individual Voluntary Arrangement based on an agreement between 3 and 5 years and supervised by an I.P. (Insolvency Practitioner).

A Debt Management is an unregulated agreement that could take much longer to conclude and it is unlikely you will receive a similar discount to an IVA agreement.

Insolvency Q) What are the costs involved in Insolvency?

A ) Many companies state that there are no costs within an IVA, this is not the case as any costs are built into the premiums paid by the applicant to the I.P. The I.P. has a set up cost and fee and will have an overall cost for managing the proposal, resulting in a reduced dividend to the creditors.

Insolvency Q) What is the estimated timescale of an IVA?

A) Timescale of an IVA will depend on the applicant providing all the necessary documentation to allow a proposal to be placed before the creditors.

The IVA proposal can be in various formats, however the normal is between 3-5 years (36-60 months) unless a third party payment is injected as a capital sum. If this was to happen and accepted by the creditors, then the IVA timescale would be much reduced and could go be as little as 3 months.

Insolvency Q) Is an IVA subject to creditors approval?

A) An IVA proposal is subject to approval by the creditors and requires a 75% acceptance, should an acceptance not take place then a variation of the IVA proposal could be modified and presented for consideration.

Insolvency Q) Will Insolvency affect my personal banking?

A) An IVA will almost certainly affect your personal banking in that you will be restricted to further borrowings set by your I.P. You will be unable to utilise bank accounts that form part of your IVA proposal.

Insolvency Q) Is there an Insolvency register?

A) Yes

Insolvency Q) What happens if I cannot complete my IVA agreement?

A) Should you find yourself with a change of circumstances to the IVA agreement, it is possible that your I.P. on your behalf could request a variation to your IVA agreement. The alternative being bankruptcy.

Insolvency Q) Is an IVA suitable for business purposes?

A) There are provisions for a business IVA (CVA) for sole traders and businesses alike and work on similar lines to that of an Individual Voluntary Arrangement.

Insolvency Q) Will Insolvency affect my pension?

A) An IVA will only effect your pension if it forms part of the IVA proposal agreed by the creditors.

Insolvency Q) Is there any legislation covering Insolvency?

A) Legislation in respect of an IVA is covered by the 1986 nsolvency Act and the 2000 Insolvency Act.

Insolvency Q) What is the purpose of an IVA?

A) The purpose of an IVA is that, it is an alternative to bankruptcy without the stigma of bankruptcy whereby one can make a proposal to existing creditors that would result in a better return for the creditors against that of a bankruptcy.

Insolvency Q) If I enter an IVA will I lose my personal assets?

A) Personal assets within the IVA will have to be declared to the IP (Insolvency Practitioner) who will decide on what should be inclusive within the assets of any IVA proposal presented to the creditors.

Insolvency Q) What does an IVA do?

A) An IVA is beneficial in that a one monthly contribution is paid to the I.P who in turn will distribute it to the various creditors. At the end of the IVA any outstanding debt is normally written off making one debt free.

An IVA further removes the hassle of creditors and debt collectors calling and more importantly it lets one get their life back, it is also an alternative to bankruptcy without the stigma.

Insolvency Q) What proportion of debt can be written off with an IVA?

A) Many companies promise what they can not put into practice. Creditors are more aware and are seeking a higher return in respect of the debt. There are no formal guidelines and normally it will be on a case by case on any IVA proposal..

It is worth noting that it will be the creditors who decide any IVA proposal and what debt they are prepared to discount. As a guideline it will be very much based upon disposable income.

Insolvency Q) After the completion of an IVA, am I debt free?

A) If you fulfil your IVA agreement then any debt is discounted (See 1986 Insolvency Act).

Insolvency Q) How is an IVA prepared?

A) An IVA is based upon the information received from the debtor, at times this is cross referenced with various agencies, property valuations and income and expenditure, there also maybe other issues that need to be taken into consideration such as insurance policies or hirer purchase.

The I.P has to have an overall view before he can make recommendations or prepare an IVA proposal for consideration by creditors.

Insolvency Q) What information is used within an IVA proposal?

A) All relevant personal information covering income and expenditure, debts, mortgage, insurance, pensions and any other relevant information required by the I.P to formulate an IVA proposal.

Insolvency Q) How long does an IVA take to be implemented?

A) The preparation of an IVA will be dependant upon the debtor providing the necessary information required by the I.P and will vary depending upon the content within the IVA proposal.

Insolvency Q) What is an Insolvency Interim Order?

A) An Interim Order can be requested by an Insolvency Practitioner on behalf of the debtor through the local courts, whereby there will be a restriction on any court action until the creditors have had the opportunity to consider a proposal of payment via an IVA for the debtor.

Insolvency Q) Will Insolvency affect my employment?

A) Normally an IVA will allow the debtor to continue in their employment without interruption.

Insolvency Q) What happens if my IVA fails?

A) The creditors can reject any IVA proposal however in most cases a new application can be presented with IVA variations included. The alternative being that should the creditors over all reject then bankruptcy could then follow.

Insolvency Q) What happens if I default with my IVA agreement?

A) Should a default take place within an IVA agreement the I.P or Insolvency Practitioner can fail the IVA agreement which could result in a bankruptcy application.

Insolvency Q) What is an IVA variation?

A) An IVA proposal could be presented whereby a single or more creditor(s) require other factors in being built into the IVA agreement.

A second point could be that the financial circumstances have changed and as a result the I.P goes back to the creditors seeking a variation of the IVA agreement.

Insolvency Q) Will Insolvency restrict further borrowing?

A) The clear answer is yes, however the best advice would be to seek clarity from the acting I.P.

Insolvency Q) Will Insolvency affect my credit cards?

A) Yes. Restriction on credit is automatic however one should seek clarity from the acting I.P.

Insolvency Q) Is an IVA a binding agreement?

A) An IVA or Individual Voluntary Arrangement, is a binding agreement between creditor and debtor.

Insolvency Q) Should I get legal advice before signing any IVA agreement?

A) Almost certainly we would advise that any debtor seeks advice from their solicitor on any proposal to be presented to creditors, as any agreement IVA will be formally binding.

Bankruptcy Questions

Bankruptcy Q) Is bankruptcy the right choice?

A) Before entering into bankruptcy, one should explore all avenues as such a decision may have a long lasting effect on ones life and credit history. Bankruptcy should be the last resort if one finds that their financial situation is not sustainable to make a binding agreement with creditors.

A guideline would be income and expenditure and disposable assets, along with pressure from creditors. Some people can not take the pressure or hassle one would encounter from the creditors or their representatives and feel that bankruptcy is the easier option.

There are plenty government bodies providing advice and this root should be taken before any action.

Bankruptcy Q) What are the alternatives?

A) Alternatives come in different formats; an IVA for instance is an Individual Voluntary Arrangement whereby an agreement maybe reached between the debtor and the creditor(s).

If you are a home owner you maybe able to, increase your current mortgage and consolidate any additional debts.

It is possible that the debtor can downscale their property resulting in release of equity to service or clear any other outstanding debts.

Other alternatives maybe available and will only result with additional information.

Bankruptcy Q) If I were made bankrupt, what would be the process?

A) If one was made bankrupt the Insolvency service overseeing my affairs may require you to undergo a public examination of your finances.

Bankruptcy Q) Will have I have to attend a court?

A) Most people attend court however it is not compulsory.

Bankruptcy Q) How long a bankruptcy last?

A) A bankruptcy will normally run for a period of 12 months however in some cases this can be shorter, there is also provisions for to extend bankruptcy periods.

Bankruptcy Q) Will a bankruptcy effect my employment?

A) Bankruptcy will almost certainly effect your employment if say you were a police officer, security guard or an MP these are only examples and there are many other areas that could be effected.

Bankruptcy Q) What will happen to my property if I go into bankruptcy?

A) It is more than likely if one is made bankrupt that the property would be sold with any surplus being credited to the estate.

Bankruptcy Q) What are the costs involved in a bankruptcy?

A) If one makes themselves bankrupt which can be done through the local court there will be costs attached to any application they normally vary between £450-600.

If one is made bankrupt then the costs come out of the estate.

Bankruptcy Q) Will a bankruptcy affect my personal banking?

A) Bankruptcy will almost certainly effect your personal banking as you will be curtailed to further borrowing and in most cases banking facilities.

Bankruptcy Q) Is there a bankruptcy register?

A) Once made bankrupt a notice will be placed within the national paper in your locality as well as the London Gazette, it is then registered on the bankruptcy register.

Bankruptcy Q) Will a bankruptcy affect my pension?

A) Should one be muptcy register.

Bankruptcy Q) Will a bankruptcy affect my pension?

A) Should one be m