Bankruptcy, the “B” word, is feared by many. This is often as a result of uninformed misconceptions. There is a possibility of positive and negative outcomes depending on the individual situation.
However, regardless of the outcome, Bankruptcies are on the rise.
This week we had 23 queries in relation to Bankruptcy. Individual Bankruptcies have increased by 27.3% in the past 12 months. Last quarter individual insolvencies reached a staggering 28,951.
So, is there such thing as a ‘best case scenario’ in Bankruptcy?
Providing the Client’s circumstances align, Personal Bankruptcy can provide a “clean slate” allowing the individual the opportunity to start again. We regularly assist individuals going through Personal Bankruptcy and help to alleviate the pressures involved, acting in our Clients’ best-interest to achieve of the best outcome.
For many the family home is the most treasured of all. There are instances in which you may keep your home, for example if the property is in Negative Equity and you can maintain your mortgage repayments. Even if there is Equity in the property we can offer the appropriate strategies on keeping your family home in Bankruptcy.
However, we must stress that Bankruptcy may not be the best option for some people and we would urge you to obtain full, advice before making this decision. Bell & Company can provide this. You do not want to be left exposed.
Look at this guide and see what will happen to your home in the event of Bankruptcy.
In the case where you have low value assets, even negative equity in property, and cannot proceed with Bankruptcy due to your profession or other reasons, then looking at alternatives such as an informal arrangement is an option.
In situations such as this we can negotiate on your behalf, dealing with the intricacies of your case and applying our expertise.
There are also instances in which it is not in the creditors best interest for you to go Bankrupt.
Reasons for this are:
- Low Value assets
- Trustee costs
- Joint ownership on property
In this case you are in a position where you can negotiate outside of the realms of bankruptcy, but you must take professional advice as Bankruptcy can still be enforced if communications breakdown.
Avoiding Bankruptcy is achievable.
In the past, we have had a client with personal guarantee debt of over £6.5 million. After receiving a Statutory Demand for full payment, we entered negotiations on their behalf. With third party financial assistance an informal agreement of full and final settlement was achieved, saving the client from Bankruptcy.
Proceeding with Alternative options
Amicably liaising with a lender can vastly reduce the chance of you being declared Bankrupt and bring about a positive outcome for all parties.
If you want to negotiate with the lender to achieve a full and final settlement, we can guide you through the process.
Bell & Company, Debt Strategists, are expert negotiators who assist many through alternative arrangements outside of Bankruptcy enabling many to reach a solution to their debt problem.
Regardless of best or worst-case scenario, Bell & Company can assist in providing the appropriate advice tailored to your personal circumstances with a view to establishing your best-case scenario.