If you are experiencing financial issues or if you are feeling overwhelmed by debt, the idea of bankruptcy may have crossed your mind. With the economy in the state that it is currently in, many people are experiencing financial problems. Some consumers have lost their jobs, and have not been able to reclaim their income even after consulting with a redundancy solicitor. Other consumers have gotten in over their heads with mortgage repayments, thanks to declining real estate values. A myriad of different scenarios may have brought you to your current financial situation, and luckily, there are several different routes out of these circumstances.
Get Expert Advice Before Declaring Bankruptcy
Before declaring bankruptcy, you should first consult with a bankruptcy solicitor. These professionals can advise you on the facts of bankruptcy itself. One of the first things that they will caution you about is that bankruptcy is permanent. Thus, if you file and give up ownership of your assets, there will be no way to reclaim those assets in the future. However, certain assets are exempt from bankruptcy, and you will not have to give up those assets when you declare bankruptcy. So that you can make a well informed decision, your solicitor will help you to determine which assets you may lose and which may be exempt.
Do You Qualify?
In addition to advising you regarding what would happen to your possessions, the right solicitor will also help you to determine whether or not your situation even qualifies for bankruptcy. Some individuals simply do not qualify for bankruptcy while others may qualify, but they instead find more attractive alternatives to bankruptcy. A skilled redundancy solicitor can help their clients to explore many of the alternatives that currently exist.
Can An Alternative Be Arranged Other than Declare Bankruptcy?
In some cases, solicitors can help debtors to negotiate voluntary payment plans with their creditors so that they can avoid a court case. Consumers who are interested in pursuing a more formal arrangement can work with their solicitor to create an Individual Voluntary Agreement, or IVA. These agreements set out a regular monthly payment plan that has been crafted around the consumers’ current and projected monthly income.
Although IVAs were popular for a long time, they are losing ground as economic analysts and others project that too many individuals will lose their jobs and not be able to keep pace with the proscribed payment schedule. Even with a redundancy solicitor, job loss situations are inevitable for many consumers. In lieu of filing an IVA, many consumers are now opting to file a Debt Relief Order, or DRO, instead. These arrangements are usually reserved for consumers who have less than a total of £15,000 of debt and who also have very few assets and not much money to pay their debts. Because a DRO is cheaper and easier to file than a traditional bankruptcy, there are growing in popularity. Because they are not reliant on projected income like an IVA is, they are not losing popularity like IVAs are.
Regardless of why you are in your current financial situation, you may be able to get out of it with the help of a bankruptcy solicitor. Rather than just helping you to declare bankruptcy, these individuals may also be able to help you find alternatives as well. Before jumping into a decision that is irrevocable, you should speak to a bankruptcy solicitor about your options.
This is a guest post by Lemon & Co – expert redundancy solicitors in Swindon. For more information on redundancy and bankruptcy, you can visit Lemon & Co’s website.