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2010 Debt Articles
With disqualification on the increase what can you do to avoid Director Disqualification (22 Jul 10)With increasing numbers of directors being disqualified we look at steps you can take to avoid being one of those.
CVA - Probably the best company debt solution in the world (15 Jul 10)There are a number of business debt rescue options available. For those who have been tipped over the edge the Company Voluntary Arrangement may be the best company debt solution in the world for them
Why not to do a Company Voluntary Arrangement to solve company financial problems (09 Jul 10)We look at the downsides to a Company Voluntary Arrangement to help you consider if it is the right business debt rescue solution for your situation
Advantages of a CVA to solve business debt (02 Jul 10)In the current tough trading conditions do not hang on hoping for a miracle to solve your cashflow problems. Act now and see if a CVA is the business rescue solution for you.
CVA: The forgotten solution to company money problems (29 Jun 10)The economic downturn that caused your company debt problems also makes the CVA insolvency solution more favourable to solve them.
Business failures decreasing but not out of the woods yet (24 Jun 10)The number of company failures in 2010 is not as high as predicted, but it is far from plain sailing for many companies. What steps can you take to ensure you are not one of the statistics?
I am renting and have debt problems: what is the best debt solution for me? (07 Jun 10)It is very important to understand that choosing the right debt solution does not just depend on whether you are a homeowner or not.
Can I go on holiday while I am in an IVA? (04 Jun 10)With the summer holiday season ready to start we consider whether it is right to spend time and money taking a break if you are in an individual voluntary arrangement.
The scrapping of child trust funds hands back the burden of saving to parents (27 May 10)Child trust funds are to be scrapped by the government from January 1st 2011. We consider how you can save for your child's future.
My home information pack (HIPs) business is in trouble - what can I do? (25 May 10)Home information packs (HIPs) are no longer required to sell a home and as a result thousands of people may lose their jobs or see reductions in their income. We consider the options for people whose livelihoods have been affected.
Will my creditors make me bankrupt? (24 May 10)People who are struggling to pay personal debts are often worried about bankruptcy. But how likely is it that one of your creditors will force you down the bankruptcy route?
I am renting and cannot pay my debts: should I declare bankruptcy or do an IVA? (21 May 10)As a tenant is it better for an individual in serious debt to declare bankruptcy or undertake an individual voluntary arrangement?
How will I pay my mortgage if interest rates rise? (20 May 10)When mortgage rates start to increase significant numbers of people will struggle to keep up with mortgage repayments: What can you do?
Can I stop winding up using pre pack administration? (19 May 10)If your company has received a winding up petition you need to take action quickly or the business will be closed. We explore whether pre pack administration can be used to overcome this problem.
Avoid having to defer tax debts by using a CVA (13 May 10)A Company Voluntary Arrangement will immediately reduce the monthly payments rather than simply delaying the payment of outstanding debt.
If I have a charging order can I sell my house? (11 May 10)Charging orders are increasingly being used by banks to secure personal debts which have fallen into arrears. But should homeowners worry that this will make it more difficult to sell their homes?
Reduction in company failures may not mean improvements for jobs and wages (10 May 10)Company closure due to bad debts fell to the lowest level for a year in the first quarter of 2010. However, there may still be bad news to come for wages and jobs.
Personal insolvency figures reach new highs with no end in sight (10 May 10)The number of people declared formally insolvent reached the highest levels since records began in the first quarter of 2010. However, the real picture is much worse.
Tips on how to afford the payments required for an IVA (06 May 10)If the monthly amount for an Individual Voluntary Arrangement looks more than you can afford, do not discard the IVA solution. You could well afford it by taking a different look at some of your expenses.
What happens to vehicle leases after liquidation? (05 May 10)Once a company is put into liquidation, leasing agreements will normally be broken and vehicles returned. However, there may be ways to keep them if required for a new business.
Can I change from a debt management plan to an IVA? (05 May 10)A debt management plan can give immediate relief from a debt problem. However once the dust settles, the option of changing to an IVA may bring significant advantages.
Personal insolvency set to be the highest since records began (04 May 10)Despite signs of economic recovery, the number of individuals who are facing personal financial disaster is set to continue and likely to be the highest recorded since records began.
Who can issue a winding up petition? (29 Apr 10)If a winding up petition if issued, this could have a catastrophic effect on a company often resulting in its closure and the investigation of its directors. We investigate who can issue such a petition and if a winding up order might be granted.
Four Steps to get your debts under control (28 Apr 10)Four Simple Steps to get your debts under control. Taking the time to manage your money using some simple techniques can keep your finances under control and prevent debts getting out of hand.
What happens to my car HP if I do an IVA? (27 Apr 10)If you have a car on hire purchase, this will have significant implications if you wish to carry out an IVA. We investigate these and whether you will be able to keep your car.
If my company continues to trade with a county court judgement is this fraudulent? (26 Apr 10)Allowing a company to continue to trade while insolvent can lead to the directors being accused of wrongful trading and held liable for company debts. Being issued with a county court judgement could be evidence of this. What should you do to avoid this?
If I declare bankruptcy, what happens to my joint debts? (22 Apr 10)If you have any joint debts and you declare bankruptcy, the other joint account holder will automatically become responsible for paying the full outstanding balance.
What are the downsides to doing a Company Voluntary Arrangement? (21 Apr 10)Company voluntary arrangements are used widely to save businesses in financial difficulty. However before going ahead with this type of solution, directors should be fully aware of the potential pitfalls
What happens to my bank account if I do an IVA? (20 Apr 10)You may have to open a new bank account if you start an individual voluntary arrangement. However, this process is not as daunting as it may first seem.
If I do an IVA will my company credit rating be affected? (19 Apr 10)A company director can resolve a personal debt problem using an individual voluntary arrangement. However, care should be taken if the company bank account is held at the same bank.
Will interest charges be stopped if I do a debt management plan? (19 Apr 10)Debt management plans are used by thousands every month to tackle personal debt problems. But beware, if interest and late payment charges are not stopped, your balances could continue to increase every month
Will my parents house be blacklisted if I do debt management or an IVA? (15 Apr 10)Are you considering a debt solution but are worried about the effect it will have if you live at home or in a property belonging to your partner? We look at whether this action will have a negative effect on the property or not.
My company has a county court judgement; will this affect my personal credit rating? (14 Apr 10)If you are a director or owner of a small business which receives a county court judgement (CCJ) you may be affected personally even if your company is limited. We look at when this might be and what you may be able to do about it.
Will I have to open a new bank account if I have a debt problem? (13 Apr 10)If you are struggling with debts and owe money your bank any balance in your current account will be at risk unless you open a new account. We explain the options you have to sort this out.
If I do a pre pack administration, can I trade from the same premises? (12 Apr 10)For many businesses one of the advantages of a pre pack administration will be that they are able to continue to trade from the same premises. We investigate how this is achieved.
If I do a debt management plan, will I get a charging order? (09 Apr 10)With more people than ever before carrying out debt management plans, the risk of receiving a charging order against your property is also increasing.
If a winding up petition is received what happens to the company bank account? (08 Apr 10)Receiving a winding up petition can seriously affect your company's ability to trade as its bank account is likely to be frozen. We discuss the options available to avoid this.
What happens to my credit rating if I do an IVA or DMP? (07 Apr 10)Using an individual voluntary arrangement or debt management plan could be the best way to resolve your personal debt problem but be aware of how your credit rating will be affected.
How long will it take to pay my debt using a debt management plan? (06 Apr 10)One of the key steps to resolving a debt problem is to reduce the payments you make to your creditors each month to an affordable amount. Implementing a debt management plan will mean that the time it takes to repay your debt will increase significantly.
What happens to my personal guarantee if I do a pre pack? (01 Apr 10)In a pre pack administration debts are not transferred to the new company. If any of the outstanding debts have been guaranteed by the company directors, they will be personally liable. We discuss the options available.
Can I go bankrupt if I am in an IVA? (31 Mar 10)If you have started an individual voluntary arrangement (IVA) but are unable to maintain the agreed payments, bankruptcy could be an option to resolve your debt problem once and for all
What happens if I cannot pay my Company Voluntary Arrangement? (30 Mar 10)A company voluntary arrangement (CVA) can solve a company debt problem and transform a business back to profitability. However failure to maintain the agreed payments could force the company to be wound up
What happens if my circumstances change while in a debt management plan? (29 Mar 10)If your circumstances change while you are in a debt management plan, you can decrease your monthly payments. This will significantly extend your debt repayment period.
What happens if I cannot pay my company tax bill? (26 Mar 10)Where your company cannot pay the tax it owes, it may be forced to close and directors could be held personally liable for the debts. Given the seriousness of this we look at the actions you as a director can take if you have company debt problems.
Debts mean I am struggling to pay the mortgage - will debt management help? (25 Mar 10)Homeowners with unsecured debt problems can often find that they get into arrears on their mortgage because they are focusing on paying credit cards and personal loans. We look at tips and solutions that can help.
Are directors personally liable for debt if a winding up petition has been received? (24 Mar 10)If your company is wound up, you will be held responsible for its debts if you have given personal guarantees or have knowingly allowed the business to trade while insolvent
Can a lump sum be used to settle an IVA? (24 Mar 10)An Individual Voluntary Arrangement (IVA) will normally involve making payments towards your debt for five years and include regular reviews of your income. If you have a lump sum, you could settle immediately with nothing more to pay
My company cannot afford to pay a CCJ, what can I do? (22 Mar 10)If your company has debts which it is unable to pay, it is likely that it will receive a CCJ. We look at the likely consequences of a CCJ and what options you have.
I am being threatened with bailiffs - what can I do? (19 Mar 10)If bailiffs have been instructed to collect a debt which you owe or you believe that a bailiff may be instructed, you must act quickly or risk losing household goods and even your car
My company is struggling with debt – what are my options? (18 Mar 10)As small to medium sized businesses continue to face financial difficulty, business owners should be aware of the different strategies available to resolve company debt problems.
Is my house at risk if I go bankrupt? (16 Mar 10)If you declare bankruptcy, this does not automatically mean that you will lose your home especially if you have little or no equity or are renting
I need a business loan - what can I do? (11 Mar 10)Securing a business loan remains difficult for small and medium sized companies. We give some tips on what businesses can do to make raising cash easier.
Will personal debt problems continue to increase in 2010 (10 Mar 10)The number of people with personal debt problems increased by 26 percent in 2009. With increasing personal debt the outlook for 2010 does not look any better.
I have got company debt problems - how can a pre pack help? (09 Mar 10)If your company is failing because of the weight of historic business debt repayments, pre pack liquidation can write off debt and give the business a new start.
Which debts can be included if I declare bankruptcy? (08 Mar 10)Declaring bankruptcy will mean that any unsecured debt you have is written off and the pressure of constant collection letters and phone calls is taken away. However be aware of debts that cannot be included and will remain after bankruptcy.
My company debt cannot be paid - options to solve the problem (04 Mar 10)If your company has debt which it cannot afford to pay, you could risk the business being wound up and the directors being held liable. We give advice on the business debt solutions available.
I want to declare bankruptcy - how can I afford to pay the court fee? (03 Mar 10)For many people, declaring bankruptcy is the best way to deal with a serious personal debt problem. However, the cost can seem prohibitive. We discuss the options you have.
I have a County Court Judgement - Can an IVA help? (02 Mar 10)If you receive a county court judgement this could lead to money being taken directly from your wages and even a charge being put against your house. An Individual Voluntary Arrangement (IVA) will prevent this action.
I have company debts including HMRC - Will pre pack administration help? (01 Mar 10)If your company has debt which it is unable to pay, its creditors, particularly HMRC, could try to force the closure of the business with a winding up petition. Pre pack administration can prevent such action.
The cost of bankruptcy set to rise (26 Feb 10)Bankruptcy is often the right solution to resolve a serious debt problem but an increase in cost due in April is likely to preclude many who are most in need.
Can I stop a county court judgement with a pre pack? (25 Feb 10)If creditors have taken out a county court judgement (CCJ) against your company, the next step could be a winding up petition. Pre pack administration will give your business a fresh start free of debt.
How will a County Court Judgement affect my home? (24 Feb 10)If you are struggling to pay your debt it is likely that you will receive a county court judgement (CCJ). As a home owner this could lead to a charging order against your property. We look at the implications of this.
How can I reduce my company debt with a Company Voluntary Arrangement? (23 Feb 10)If your business is unable to pay its debts, a company voluntary arrangement (CVA) could reduce your monthly payments and write off debt thus saving the business from failure. Find out more about how this solution could work for you.
If my company is wound up could the bank force me to sell my home? (22 Feb 10)If your company is struggling and likely to be wound up, your home could be at risk if you have given personal guarantees of repayment to the bank.
What effect will an IVA have on my home? (22 Feb 10)An IVA can protect your property against charging orders and even bankruptcy. However, your home may be at risk if you do not maintain your creditor repayments.
Can I stop a charging order with a debt management plan? (18 Feb 10)If a charging order is issued against you, the associated debt will be secured against your home. This can be prevented if the right steps are taken to manage your debt problem.
How to stop a winding up petition - use a CVA (17 Feb 10)A winding up petition will stop your company trading unless you take immediate action. By implementing a CVA (Company Voluntary Arrangement), winding up action will be stopped and company debts written off.
I have a debt problem - Will I be forced to sell my house? (16 Feb 10)If you are a homeowner and struggling with debt, your house could be at risk if you do not take the right precautions and chose the appropriate debt solution.
Company Liquidation - What will it cost to close my company? (15 Feb 10)If a company needs to be closed because it is unable to pay its creditors and is at risk of being wound up, a process called voluntary liquidation should be implemented. This is preferable to letting it be wound up by a creditor and risk being liable for company debts.
Winding up - are the rules different for high profile companies like Portsmouth FC? (11 Feb 10)If a company is proved to be trading while insolvent the court normally issues a winding up order and appoints of a liquidator to begin the closure process immediately. In the case of Portsmouth FC this smacks of rules being disregarded because its owners are able to afford an expensive legal team.
Plans to make the bankruptcy process easier should be encouraged (10 Feb 10)The Insolvency Service is currently considering whether the bankruptcy application process can be made simpler and quicker. We discuss the proposals and objections put forward to them.
How will a County Court Judgement affect my business? (09 Feb 10)When one your creditors is owed money that is overdue and not being paid, one of the first actions they are likely to take against your business is an application for a County Court Judgement or CCJ. If a country court judgement remains unpaid, this could lead to more serious action being taken against the business.
Personal insolvency figures are double that reported by the Insolvency Service (08 Feb 10)The figures from the Insolvency Service report only formally registered insolvencies. These include individuals who have declared bankruptcy or undertaken individual voluntary arrangements (IVA) or debt relief orders (DRO) to resolve their debt problem.
Company insolvencies rise dramatically in 2009 with little hope of improvement for 2010 (08 Feb 10)The number of companies closed due to insolvency in 2009 increased by nearly 23% over the previous year with little hope for improvement in 2010 according to figures published by the Insolvency Service on Friday.
Which debt company should I use to solve my debt problem? (05 Feb 10)When choosing which debt management company to work with, it is vital that you get as much information as you can about all of your options. The internet is a great place to start - and act on a recommendation if you have one.
My company is struggling - what are my options to improve cash flow? (04 Feb 10)Ensuring that enough cash is available to maintain their business must be a priority for companies. Those that do it well will survive. Those that do not are likely to fall. As such identifying problems and implement solutions which may require a radical restructuring of debt must be a priority. We discuss some of the solutions available.
Opening a new bank account if your credit rating is poor (03 Feb 10)If you need to change your banking facilities but believe that your credit rating is poor, it will be possible to open a new account. You just need to go about the application in the right way. We discuss the issues and advise on the best way to go about getting a bank account if you have a poor credit rating.
What happens to the directors if a company is wound up? (01 Feb 10)The liquidator must carry out an investigation into the conduct of the company directors if the business is wound up to see whether any or all of the directors have allowed the company to trade while knowing that it was insolvent. Wrongful trading can have serious consequences for Directors. We look at what you can do as a Director to avoid this.
Can I get a mortgage when in a debt management plan? (31 Jan 10)If you are in a debt management plan and are looking into buying your first home or to move home this is possible. However there are a couple of things to be aware of. We highlight these areas so you can be prepared for them.
I am self employed - How can I save my failing business? (28 Jan 10)If you are self employed and your business gets into financial trouble, you are personally responsible for the business debt. However, you can often save the business and turn things around using a personal debt solution. We discuss the issues.
Will I get a charging order if I can't pay my debt? (28 Jan 10)A charging order is an order from the court which puts a legal charge against your property. The effect of the charge is to turn an unsecured debt such as a personal loan or credit card into a secured debt. It is very important to understand the risk of receiving a charging order.
What does it cost to wind up a company? (27 Jan 10)Even the threat of issuing a winding up petition may be enough to get a debtor company to pay up. However, before considering taking action to wind up a company, it is important to understand the potential costs and likely outcome.
Should I get a pre paid debit card? (26 Jan 10)A pre paid card provides convenience when shopping and provides the ability to pay on the internet, particularly if you have no access to any other type of payment card. However if you are thinking of getting a pre paid card, you must make sure that you are fully aware of the costs.
How can I liquidate my insolvent company? (22 Jan 10)If your company is insolvent, before making the decision to stop trading and liquidate consider all of the rescue options available. However if closure is the only way forward, then appointing the right liquidator to protect the interests of the directors is important.
How will an IVA affect my credit rating? (21 Jan 10)The fact that a credit rating is damaged is often one of the things which puts people off taking up an IVA. However, the way that the credit rating is affected needs to be put in context with other debt management solutions.
If I declare bankruptcy, what happens to my company? (20 Jan 10)Bankruptcy can be an extremely effective way of dealing with a serious debt problem. However if you are managing a company there could be serious implications. We look at the issues for Directors and Sole Traders considering bankruptcy as a debt solution.
A full and final IVA could solve debt immediately if a lump sum is available (19 Jan 10)Pre pack administration (or Phoenixing) is becoming more and more popular as a way of rescuing a failing company. The process involves setting up a new limited company which then buys the assets of the old business.
How can a Pre Pack save my business? (18 Jan 10)The traditional five year IVA payment period can be avoided and a debt problem resolved immediately if a cash lump sum is made available. Once the lump sum is received, it is distributed to creditors immediately, any remaining debt is written off and the arrangement comes to an end.
Can I use an IVA to solve my debt problem? (18 Jan 10)An Individual Voluntary Arrangement (IVA) could be the answer to solve your debt problem enabling you to write off up to 50% of your debt and become totally free of debt within 5 years.
How can a company voluntary arrangement save my business? (14 Jan 10)A company voluntary arrangement (CVA) is designed to rescue a business where it is unable to pay its debts and is facing closure. Creditors agree to accept a reduced amount of their debt payable over a five year period.
Are the banks taking us for a ride? Personal loans are more expensive than ever (12 Jan 10)Given the combination of available cash and low interest rates, I find it surprising and not a little concerning that banks seem to be making borrowing for both individuals and businesses extremely difficult. Particularly worrying is the rate of interest that banks are charging their customers, is this profiteering?
Company in trouble? Tips to help you avoid winding up the business (11 Jan 10)If the current financial position of your business makes you believe that continuing to trade under the current circumstances is not viable, there are real steps you can take to save the company.
If I declare bankruptcy will I lose my home? (08 Jan 10)Bankruptcy is an extremely useful solution for many people who have serious debt which they are not in a position to repay. However, many people are not taking advantage of this solution because they believe that their home will be at risk.
Will I be paid as a priority if I issue a winding up petition against one of my creditors? (07 Jan 10)Business and individuals who are owed money by companies are increasingly opting to issue winding up petitions as a method of collecting their debts. However, this strategy is not without risks.
Top 5 Debt Solutions for those in serious debt (06 Jan 10)There are a number of different ways that personal debt can be solved. The right solution will depend on many different factors from the amount of debt owed, income levels, whether the person owing the money is a home owner and also personal preference. The main options are described briefly below
My self employed business is in trouble, what can I do? (05 Jan 10)As a self employed business owner you remain personally liable for any debt that the business incurs which it cannot repay. If your business fails or is struggling and you cannot afford to repay its debts, the solution you need to use will be a personal debt management solution. We describe some of those options in this article.
Simple steps to make saving a habit in the new year (05 Jan 10)Debt problems can often start in times of emergency when there is no money to fall back on. Make a new year's resolution to save for a rainy day and avoid falling into the debt trap when cash demanding emergencies strike. Follow these simple steps.
Insolvency Practitioners we use are members of one of:
