Q. How do I know if I am insolvent?
A. You are insolvent if your owe more than you own. For example, if your only asset is a car worth £1,500 and you owe £15,000, you could be considered insolvent.
If you cannot pay your debts, you are also insolvent. Anyone who can only afford the minimum payments on their credit cards is likely to be insolvent. Importantly, this is also likely to mean that their debts will be growing each month, with no likelihood of being able to repay the balances in full.
Q. Will my credit rating be affected if I enter insolvency proceedings?
A. Yes, your credit rating is affected once you default on your payments to creditors. This is usually for approximately six years.
Q. Do you charge for an appointment with an advisor?
A. No, your advice meeting is free of charge.
Q. Am I going to lose my home if I enter into an IVA?
A. In most cases, you will not be required to sell your home in an IVA. However, creditors do ask that during the final year of the Arrangement, you re-mortgage your property and pay the maximum amount affordable from the equity in your property into the IVA. As secured borrowings are not included in an IVA, you are required to maintain your mortgage payments. If you do fall into arrears with your mortgage and the secured lender wishes to re-possess the property, then they are entitled to do so, and the IVA will not stop this. However, an IVA will leave you with enough money to pay your mortgage every month.
Q. Are there creditors that aren’t included in insolvency proceedings?
A. Secured creditors cannot be included in an IVA unless it is for a shortfall on a property that you are no longer residing in. In addition, the following cannot be included in an IVA or Bankruptcy: Child Support Agency debts, student loans, motoring fines, and utility bills that you are continuing to use.
Q. Can an IVA help me repay all of my debts?
A. Yes it can help you re-pay unsecured debt at a monthly payment that is affordable to you.
Q. Can I arrange an IVA directly with my creditors?
A. No, an IVA can only be processed through a Licensed Insolvency Practitioner. You should check that you are dealing direct with a company that has a Licensed Insolvency Practitioner as this avoids extra fees that some unlicensed insolvency advisors charge.
Q. Is an IVA private?
A. An IVA does go on the Insolvency Service website but can only be found if it is searched for by your name. It is not published in the newspaper and you do not need to advise your employer, unless this is required under your contract of employment.
Q. Can I keep using credit whilst in an IVA?
A. Whilst you are in an IVA, no credit can be obtained. This includes overdrafts and store cards etc. However, you are able to continue with agreements for your public utilities.
Q. How are debts with joint liability treated in an IVA or Bankruptcy when only one of us is entering into the proceedings?
A. If you have a debt that is in joint names, then you are both liable for the debt. You must include the debt in the IVA or Bankruptcy, but the creditor can still contact the other person for payment.
Q. Can I have a bank account if I am in an IVA or bankrupt?
A. Yes you can have a basic bank account with no overdraft facility but it must be with a bank that you do not owe any money to.
Q. Can I reuse my Company name if I liquidate the company?
A. If you are a former Director of a liquidated Company, there are legal restrictions that apply regarding the reuse of that Company’s name or its trading name. A name which cannot be used is known as a ‘prohibited name’ and its use is restricted in certain circumstances. A prohibited name is a name by which the liquidated Company was known at any time in the 12 months immediately before its liquidation or a name so similar as to suggest an association. There are exceptions to these restrictions; the most commonly used being through the purchase of the right to use the name, together with all, or substantially all, of the Company’s assets from the appointed Liquidator. Formal notice to creditors of the liquidated company must be given of such a purchase to get the benefit of this exemption.
Q. Can I be a Director of another Limited Company in the future?
A. Yes – there is no automatic bar on being a company director if your previous company goes into liquidation. Once a limited company is placed into Liquidation, the Liquidator has a responsibility to investigate the Company’s affairs and its directors. A report is submitted to the Department for Business Innovation and Skills (BIS) on the conduct of all the directors who were in office in the last three years of the company’s trading. BIS will then make a decision as to whether they take disqualification proceedings against any of the directors.
Q. What happens with a debt that I have personally guaranteed?
A. If you have provided a personal guarantee in relation to a company debt which cannot be repaid through the company, then you are liable for the amount due. If you are unsure whether you have personally guaranteed the debt, then one of our advisors can assist you if you provide a copy of the loan agreement.
Q. Will my credit rating be affected if my Company is in Liquidation?
A. No, as the limited company is a separate entity. However, if you are unable to pay a debt that you have personally guaranteed, then your rating may become affected.
Q. Is there a guide for unsecured creditors?
A. Yes there is a guide for unsecured creditors that will guide them through the insolvency process. The guide can be found at: www.creditorinsolvencyguide.co.uk
Q. What is your Complaints Procedure?
A. We hope that you will be happy with the service that we provide, but we recognise that there may be occasions where you are not satisfied with the way a matter has been dealt with. In the first instance, please contact the office with any issue that arises. If you are not satisfied with the explanation provided, you will be required to complain to our Recognised Professional Body through the Insolvency Complaints Gateway at: https://www.gov.uk/complain-about-insolvency-practitioner
Q. Do you have Professional Indemnity Cover?
Our professional indemnity insurance is provided by CNA Insurance Company Limited, 13th Floor, 20 Fenchurch Street, London, EC3M 3BY. This professional indemnity insurance provides worldwide coverage, excluding professional business carried out from an office in the United States of America or Canada, and any action for a claim bought in any court in the United States of America or Canada.
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PEOPLE WE HAVE HELPED
"Your kindness was really appreciated. Thank you to all the staff at Adcroft Hilton who dealt with my IVA.
It was nice to know that somebody was on my side for these last 5 years."