Knowing it’s never too late to ask for our help

Debt worries can make you feel hopeless and the very thought of bankruptcy can be a frightening prospect. For many, bankruptcy means being faced with seeing your name in the local paper, knowing your bank and creditors have been informed and then having to deal with the potential embarrassment of private problems made public. But even when bankruptcy is pending, it may not be too late to seek an alternative solution…

Q: A bankruptcy petition has been made against me. Can I still get an IVA?

Provided you are not a ‘discharged bankrupt’ with your debts already written off, it may still be possible to enter into an IVA. At this point it’s crucial to get professional advice as everyone’s circumstances are different and your own situation will be unique to you. A chat with our friendly IVA advisors could be the turning point. It may be that an IVA is the most appropriate way forward in terms of alleviating your debt worries.

Q: I feel like I want to press the ‘pause’ button – can bankruptcy proceedings be put on hold?

It’s important to understand that an IVA is not the best answer for everyone, just as bankruptcy may not always be the only option. We’ll talk you through the IVA process and find out exactly where you are in terms of the bankruptcy proceedings. It may be possible for a Licensed Insolvency Practitioner to request that your bankruptcy proceedings are put on hold for a period of time (usually up to two months) while a formal IVA proposal is arranged with you and negotiated with your creditors.

Q: What happens during this 2 month period? Will I get hassled by my creditors?

If after speaking with us, we’re able to help you put the bankruptcy process on hold, this calls for what is known as an ‘Interim Order’. Essentially this Interim Order freezes any bankruptcy application and gives some much needed breathing space while we work towards arranging the best IVA solution for you. The Interim Order serves as an injunction and protects you from any impending legal action; this would include things like visits from bailiffs and threats from aggressive creditors.

However it’s important to see the full picture and you need to remember if a particular creditor has petitioned for your bankruptcy they will no doubt have incurred some costs themselves.  It’s likely that as one of the conditions of them agreeing on your IVA, they’ll want to recoup their costs and will ask for them to be added before your IVA can go ahead.

If your mind is filled with questions about bankruptcy and IVAs, call us now for answers you can trust.