Personal Client Services
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Personal Insolvency
At Robson Laidler we have a highly experienced personal insolvency team which is headed by Bill Paxton and Martin Daley, both Principals of the Firm and Licenced Insolvency Practitioners authorised by the Insolvency Practitioners Association.
In England and Wales, Bankruptcy is the term used for individuals who are insolvent. A creditors meeting may be convened by the Official Receiver/Insolvency Service, a government department who initially deal with all Bankruptcies until a Licensed Insolvency Practitioner is appointed to act as the Bankrupt's Trustee, if this is considered appropriate.
The appointed Trustee is responsible for realising the Bankrupt's assets which usually consist of Property, insurance policies, Cash at Bank, Vehicles and Stock/Equipment and distributing the proceeds to creditors.
Many insolvent individuals now avoid Bankruptcy, by entering into an Individual Voluntary Arrangement (IVA), which involves agreeing with creditors a proposal for repaying the debts in whole or part over a period of time.
If any individual wishes to make an offer to creditors by means of an IVA they need to contact a Licensed Insolvency Practitioner who is responsible for assisting in the drafting of the individual's proposals to be put to the meeting of creditors. For an IVA to be accepted a majority in excess of 75% (by value) need to agree. This only needs to be 75% of those creditors voting at the creditors meeting. Following the meeting of creditors the Licensed Insolvency Practitioner is responsible for ensuring that the IVA achieves the objectives set out in the individual's proposals.
There are many benefits of an IVA to an individual; for example they avoid certain restrictions imposed whilst Bankrupt; IVA's are not advertised and the involvement of the Court is minimal. The administration costs of the IVA are lower than in Bankruptcy, which in turn benefits the creditors as the level of distribution is usually significantly higher.
For more information or practical/sympathetic advice please contact us, or email either Bill Paxton, Martin Daley or Ian Halliday from our Personal Insolvency team.
