Insolvency and Bankruptcy
Company Insolvency - Liquidation & Administration
When companies fall into financial difficulties it can often feel like there is no way out. Our solicitors can advise you on the best possible solution for your business, whether it be saving the company or entering into liquidation or administration.
Personal Bankruptcy
Personal bankruptcy is an option that has to be considered when an individual can no longer afford to pay their debts. It is common practice that an individual will be made bankrupt following a petition for bankruptcy by one of his or her creditors, although it can be done at the request of the individual too.
When this petition is granted, a bankruptcy order is produced by the Court. If you are first time bankrupt, you will probably receive a discharge one year after the date of the bankruptcy order. However, the length of the bankruptcy can vary and could last up to three years.
Once the bankruptcy order is made, the assets of the bankrupt individual become the responsibility of the Trustee in Bankruptcy. This is usually a licensed Insolvency Practitioner or the Official Receiver. It is the Trustee's duty to uncover as much payment from the bankrupt individual's assets as possible.
Once the bankruptcy order is made the creditors can no longer pursue you and will deal directly with the Trustee in Bankruptcy.
Individual Voluntary Arrangements
Individual Voluntary Arrangements (more commonly known as IVAs) are becoming an increasing solution for individuals facing personal bankruptcy. They are always worthy of serious consideration for anyone who has assets that they wish to retain (such as their home) or are employed in the financial sector.
An IVA is an arrangement made between you and your creditors to repay the debt or an agreed percentage of the debt. This arrangement is overseen by an Insolvency Practitioner.
Seeking advice early can maximise the options available to you, so it is good to know that with Ashton Morton Slack, you will have the best legal advice at your disposal.
As a Partner in the firm and Head of Company and Commercial Law, Max Kennedy has been dealing with insolvency matters for many years and during that time he has seen the development of more options to assist people and companies in difficulty.
For more information or to speak with a solicitor, contact us and we can help by talking through which is the best option available for you.