Personal debt & insolvency advice

At BM Advisory, we understand the financial difficulties individuals face, and we are able to advise on a range of options to help you manage your debt. You should be aware that each option is likely to have some impact on your credit record and will deal with your unsecured creditors. The rights of any secured creditors remain unaffected and your home may be at risk if you do not keep up your repayments on a mortgage or loan that is secured against your property.

We will meet with you free of charge to establish a list of your debts including amounts and to whom money is owed, your property, mortgage and other borrowings, your monthly income and expenditure, and any other outgoings. With this information, we can then advise you of your options.

Informal arrangements

There are a number of informal arrangements that may suit your personal circumstances and you should understand the advantages/disadvantages of each. You must be aware that if you chose an option that is not a legally binding agreement upon all your creditors, they may still be free to pursue you.

  • Debt Management Plan
  • Negotiated agreement with your creditors
  • County Court Administration Order
  • Consolidation loan
  • Debt Relief Order
Individual Voluntary Arrangement

An Individual Voluntary Arrangement (IVA) is a formal alternative to bankruptcy. It is a legally binding agreement between you and the people and companies you owe money to (creditors), other than your mortgage. This formal arrangement is approved in law and provides protection from creditor pressure.

If you cannot afford your current monthly repayments, as your monthly living costs and debt repayments are more than your monthly income, then an IVA could be the right solution for you.

An IVA will enable you to repay only what you can afford by ensuring that any money needed for essentials (utility bills, mortgage/rent, food etc.) is taken into consideration when calculating the IVA payment. Most IVAs consist of an affordable monthly payment to be paid from surplus income for a fixed period (normally five years), a lump sum from the sale of a property, or both.

Bankruptcy

Bankruptcy is a formal procedure where an individual opts, or is forced by creditors, to relinquish all control of their assets. It is a way of dealing with debts that cannot be paid and it should be viewed as a last resort, when all other options have been considered.

A Trustee will be appointed to deal with your income and assets (including any property) and you may be required to sell your home and/or make payments out of your surplus income. Realisations are shared out equally amongst creditors, leaving you able to make a fresh start, subject to certain restrictions.

It is however important to note that, as a bankrupt, you cannot act as a company director, or be involved in the management of a company, for the period of bankruptcy.

Call us directly

Talk to a BM Advisory team member today about how we can help you. Contact us. The earlier a problem is addressed, the more likely it is that the action taken will prove successful.