At the point where your assets are worth less than the amount you owe, it is time to take decisive action and seek advice about your debt. There are many debt management options available, with bankruptcy perhaps being the best known, to help you to deal with your creditors. However, bankruptcy either in a business or a personal context has serious financial implications for the future, such as a bad credit rating and the possibility that you may lose valuable assets such as your house. A debt specialist would be able to talk you through your options for dealing with insolvency.
An informal arrangement is often recommended to those who are dealing with insolvency. This involves contacting your creditors, explaining the situation and setting up a repayment plan that takes your available funds into consideration. Although an informal arrangement can sometimes be effective, the fact that it is not legally binding means that you have no protection if any of your creditors change their minds and demand the full repayment straight away. Therefore, it is advisable to seek professional advice. Someone who specialises in insolvency is known as an insolvency practitioner. In order to provide advice, an insolvency practitioner must be authorised by a recognised professional body, so ensure that the person you take on to help you is fully regulated. Most insolvency solutions themselves cost money, and an insolvency practitioner will charge for their services. Therefore, it is also important to check what fee they charge when you contact them. To find an insolvency specialist to help you with your debt, simply fill out the below form and a qualified advisor will get in touch.