Anyone can find themselves with debts that they struggle to repay. At the SKSi we understand how money worries affect everyday life and our advisers can help you take control of your finances and get you back on the road to financial recovery.

We understand that facing up to financial challenges can be extremely difficult and stressful. Seeking help is not easy but, from our experience, it really is an important step in improving your financial position.

You should be reassured to know that there are options available and, with the right advice and support, you can look forward to a more financially secure future. We can help you to review your personal circumstances. We can then determine the most appropriate options for your particualr circumstances.

There are currently three formal insolvency procedures available to people with personal debt problems. The law makes no distinction between people with consumer credit debts (credit cards, store cards and bank loans) and those whose debts arise from their trading as a sole trader or in a partnership.

Bankruptcy

You are not bankrupt simply because you cannot pay your debts. A person is officially a bankrupt if the Court makes a Bankruptcy Order against them. It is unlikely that a person could be bankrupt without knowing it has happened, as documents telling them about the Court hearing generally have to be personally served on them, in advance.

Individual Voluntary Arrangement (IVA)

An IVA is a binding arrangement that a person enters into with their creditors as an alternative to bankruptcy. It is similar to bankruptcy in some ways, but very different in others. Unlike in bankruptcy, the individual can choose their practitioner and put forward a deal that is most appropriate to their own circumstances. However, their offer is only likely to be acceptable if it meets certain “industry standard” expectations on the part of creditors.

Debt Relief Orders (DRO)

In April 2009 a new process, Debt Relief Orders, became available for those persons who owe less than £15,000 and have no significant assets and nominal surplus income. Similar to bankruptcy (known in the industry as “bankruptcy lite”), DROs will bring much needed relief to those on low incomes struggling to repay their debts.

People can also enter into informal arrangements and debt management plans (DMPs) with their creditors.

No matter how your debts were incurred, everyone with debt problems face similar practical issues:

• What will happen to my home?

• Will I have to make a monthly payment and how will it be calculated?

• What will happen to my bank account?

• Will bailiffs visit my house?

• What will be the effect on my credit rating?

• Will my employer find out I am insolvent?

• Can I sign my home over to my husband or wife before I go bankrupt?

• Can I carry on running a business?

These are some of the issues you should be seeking to discuss with your professional advisers before you decide which option is best for you. It is vital that you fully understand the implications of the course of action you are being advised to take.

Please contact us for a confidential conversation about your situation and to find out more about the various options available to you. We are happy to talk over the phone or meet in person. Simply contact your nearest SKSi office to arrange a free, confidential and ‘no obligation’, consultation.