Consequences of Personal Insolvency in England and Wales

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What Are the Consequences of Personal Insolvency
in England and Wales?
Many people across the UK file for personal
insolvency every year. People generally have
different reasons why they need to file 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 file for personal
insolvency and the repercussions of doing so.
Is Bankruptcy an Option? There are a few
different steps you should take when working out
whether bankruptcy is an option for you. These
include
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• Start By Sorting Out Your Debts
• If you have a few different debts, then the first
  thing you will need to do is create a plan on how
  you will be able to manage them effectively.
  Start by working out who you owe money to and how
  much you owe. Collect the below information from
  each specific debt
• The name and the address of your creditor
• The reference number or the account number
• A copy of the original loan agreement
• A recent letter that states how much debt you owe
• Once you have effectively organised a list of
  everyone you owe money, you will find 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
• Rent or mortgage payments
• Council tax payments

The Advantages and Disadvantages of Personal
Insolvency?

• There are several implications that come with
  filing 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 different advantages, and
  these include but are not limited to the
  following
• Filing for bankruptcy will relieve all the
  uncertainty and stress that comes with dealing
  with creditors yourself.
• 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.
• Creditors will be put in a position where they
  have to accept less, meaning the remaining debt
  could be written off at the end of the bankruptcy
  period.
• 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
• You have to sell any of your assets with value,
  especially those with a high value, to pay off
  your creditors.
• If you have equity in your home, you may have to
  sell it.
• If you own a solvent business, you might have to
  sell it, and as such, your staff members could be
  made redundant.

By Viv1 February 7th, 2023 Personal
Insolvency Comments Off
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