The Credit Crunch has affected us nationwide. Whether you are in London, Manchester, Leeds, Hull, Nottingham or Sheffield there is no escape. Most of us haven’t previously and won’t again experience anything like the recent economic turmoil. A once-in-a-lifetime experience – that we all could have done without.
On a personal level how do you deal with the shock of finding that your employer has gone bust? Somebody tells you that a Liquidator has been appointed …or was it an Administrator? The sudden realisation that the regular wage that you took for granted has stopped – but the rent or mortgage, council tax, electricity bills, credit card bills, and a host of other commitments are still there. A nightmare – an extremely stressful time. What do you do if you can’t pay everybody – will you lose your house? Will a bailiff turn up?
One option may be an Individual Voluntary Arrangement (IVA ), depending on your personal circumstances. In this situation, a Licensed Insolvency Practitioner contacts all the people and firms to whom you owe money. He or she will then outline your circumstances including your income and outgoings and make an offer based on those figures of what you can afford to pay. This often involves your creditors accepting only a percentage of what you actually owe, but on the basis that this will be better for them than say if you were made bankrupt it is frequently accepted. Providing that at least 75% of creditors by value accept then all are committed (this does not include secured creditors such as your mortgage company). The arrangement freezes interest and protects you from legal recovery processes (including such as actions by bailiffs). The total debt is effectively separated and agreed regular payments are made over a five year term.
If you would like more information about IVA’s please don’t delay – ring Freephone 0800 458 3320 and ask for Phil or visit our web site at www.wilsonfield.co.uk