Debts over £15,000

What you can do if you have debts over £15,000

For individuals in more serious debt there are 2 standard solutions: bankruptcy and an IVA.

The choice facing most people with bad debt used to be to declare themselves bankrupt or continue to struggle with growing debt repayments. Fortunately IVAs are now common place as well.

Bankruptcy will free you from insurmountable debts, but any assets you have in your name can be sold and the profits shared amongst your creditors.


The procedure for bankruptcy is as follows:
A bankruptcy order is made in court and you are required to provide the official receiver with a list of your assets and liabilities. The official receiver will then investigate your financial position and report to your creditors.

If you own assets, such as equity in your house, a Trustee can be appointed to realise their value and distribute these as a dividend to your creditors. Your Bankruptcy Order is also advertised in your local paper, so it's a good idea to prepare yourself for family, friends and colleagues learning of your bankruptcy.

Your bank accounts will likely be suspended, if not closed, and you should anticipate difficulty in re-establishing a new bank account. Being bankrupt puts restrictions on you for: (a) obtaining credit of over £500 and (b) you cannot fulfil a managerial or director position in a limited company.

Visit www.insolvency.gov.uk for more information on bankruptcy.


Individual Voluntary Arrangement - IVA
An 'Individual Voluntary Arrangement' ( IVA) is an agreement between you and your creditors that is legally binding and gives you the opportunity to protect important assets, such as your home.

ONLY Licensed Insolvency Practitioners are authorised to make a proposal to all your unsecured creditors and implement an IVA. On the basis that 75% (by value) of your creditors are in favour of the offer who actually vote, your IVA can proceed.

Unlike a Debt Management Plan, the IVA is funded by your creditors, who accept a dividend, or partial repayment of their debt, after costs.

At the end of your IVA, normally 5 years, any debts that have not been repaid, are written off.

Byrom&Keeley has already helped thousands of people just like you to solve their debt problems.


Call Byrom&Keeley TODAY and let us help you:
New enquiries: FREEPHONE - 0800 298 2988
Existing customers: FREEPHONE - 0800 848 8484
Creditor line: FREEPHONE - 08000 435437