It is our experience that sole traders, partnerships and individuals feel very vulnerable in times of financial difficulty. They do not have the protection of limited liability status and as such their exposure is limitless. We find that many individuals hide their heads in the ground fearing to deal with their debts until it is too late. There are various ways that financial problems can be dealt with, in the main if you have debts of over £15,000 and an income an individual voluntary arrangement could be a viable option. Furthermore, it may be possible to reach informal arrangements with your creditors or enter into a debt management plan. If these are not options then bankruptcy would be.
Over the years we have helped a large number of individuals from all walks of life, dentists, doctors, solicitors, accountants, sole traders and consumers in respect of their liabilities. In many instances as a result of a company insolvency directors have become personal liable under guarantees provided which resulted in personal difficulties. We understand that each situation is different and therefore we treat you as an individual and tailor our advice to your personal needs. From our experience the sooner you get in touch the sooner we are able to relieve you from the pressure and burden of your financial difficulties.
The formal procedures we deal with are:
A sole trader who had been in business for over 20 years, had accumulated debts due to a drop in business and bad debts. We were able to draft a proposal on his behalf which enabled him to continue his business without the stress of dealing with the accrued liabilities. The arrangement lasted for a period of five years during which time one monthly instalment payment was being made. A review of the debtors income and expenditure was undertaken on an annual basis and the monthly contributions adjusted accordingly. Creditors received a total of 20.27p in the £.
We were approached by a GP who had, due to failure to submit his tax returns been declared bankrupt. We were able to agree with the Official Receiver time to make a proposal for a voluntary arrangement in order to annul the bankruptcy. The proposal was prepared and agreed by creditors. Once the outstanding tax returns were completed and agreed sufficient funds were raised by the debtor to settle his liabilities and the costs of the bankruptcy and IVA in full. Matters were concluded within the space of a year.
A debtor had accumulated debts over a number which he could not afford to repay. He was being chased by debt collectors on a daily basis. We were able to assist him draft a proposal for a voluntary arrangement that meant he only had one affordable payment to make over a period of five years. His income was reviewed on an annual basis to see if additional contributions could be paid. The IVA was successfully completed with creditors receiving 18p in the £.