Consequences of Personal Insolvency in England and Wales

1.     Call us today! 01603 552028 | mail@leading.uk.com Home Who We Are What We Do News Resources Get Quote CONTACT What Are the Consequences of Personal Insolvency in England and Wales? Many people across the UK ?le for personal insolvency every year. People generally have di?erent reasons why they need to ?le for bankruptcy, but if this is something you are considering, you will no doubt require further information. This article will discuss how to assess whether you should ?le for personal insolvency and the repercussions of doing so. Is Bankruptcy an Option? There are a few di?erent steps you should take when working out whether bankruptcy is an option for you. These include:

2. Start By Sorting Out Your Debts If you have a few di?erent debts, then the ?rst thing you will need to do is create a plan on how you will be able to manage them e?ectively.  Start by working out who you owe money to and how much you owe. Collect the below information from each speci?c debt: 1. The name and the address of your creditor 2. The reference number or the account number 3. A copy of the original loan agreement 4. A recent letter that states how much debt you owe Once you have e?ectively organised a list of everyone you owe money, you will ?nd it much easier to navigate these debts. You will also be in a much better position to obtain information about your debts as and when you need it, which will be crucial when working out whether personal insolvency is right for you. Consider Which of These Debts is the Most Urgent Next, review all the debts you have collated and determine which is the most urgent. Some debts are much more urgent than others, and having a priority order is helpful. Those which are the most urgent will depend on what your current circumstances are. There will also be some instances where you need to convince a court (or alternative creditors) why you have decided to prioritise certain debts over others. As such, ensure you have a good reason for prioritising your debts. Some of the common, most urgent debts that people tend to face include: 1. Rent or mortgage payments 2. Council tax payments 3. Bills for gas and electric 4. Any maintenance owed to an ex-partner or your children 5. VAT and income tax If you ?nd yourself with money where you can start paying o? your debts, be sure to start with the most important. Put Together a Budget and Decide Whether You Have Enough to Pay O? Your Debts Have a look at your ?nances, and then plan out whether you will have enough money to pay o? all of your debts. If you have enough money to pay back the necessary amount, then be sure to contact each creditor and get a plan on how much you can a?ord over a certain period. Most creditors will be happy to put some kind of payment plan in place if it means they will get back the money they are owed. If You Don’t Have Enough, then Seek Financial Help If, upon preparing your budget, it is clear that you don’t have enough money to pay o? all of your debts, you should be sure to seek ?nancial help. Several organisations out there will be able to discuss the option of personal insolvency and clearly lay out what the implications of this could be. At Leading UK, we will be happy to take a look at your ?nances and provide information on the best way for you to move forward. The Advantages and Disadvantages of Personal Insolvency? There are several implications that come with ?ling for personal insolvency in England and Wales. You will need to consider these upon deciding whether or not this is the route you would like to go down. To better assess your position, you should be sure to take into account the advantages and disadvantages. The Advantages There are a number of di?erent advantages, and these include but are not limited to the following: 1. Filing for bankruptcy will relieve all the uncertainty and stress that comes with dealing with creditors yourself. 2. If you have an appointed administrator dealing with your insolvency, they will take care of all arrangements and negotiations with your creditors, ensuring you get the best possible outcome. 3. Creditors will be put in a position where they have to accept less, meaning the remaining debt could be written o? at the end of the bankruptcy period. 4. Your creditors cannot change their minds after they have agreed to payment terms. The Disadvantages There are also some disadvantages that come with personal insolvency. These include: 1. You have to sell any of your assets with value, especially those with a high value, to pay o? your creditors. 2. If you have equity in your home, you may have to sell it. 3. If you own a solvent business, you might have to sell it, and as such, your sta? members could be made redundant. 4. Your ?nancial history will be investigated in detail, so if you have done anything illegal, you could face criminal charges. Do You Need Help with Your Finances? If you ?nd yourself in a tough position and would like help with your ?nances, be sure to reach out to Leading UK. Our team of experts will be more than happy to consider your ?nances and provide information on how you should move forward. If this means ?ling for bankruptcy, we can assist throughout the process. If you have any questions or require further information, do not hesitate to get in touch. By Viv1 | February 7th, 2023 | Personal Insolvency | Comments O?

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