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Personal Insolvency
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Other SolutionsCOUNTY COURT ADMINISTRATION ORDER This is a very cheap and simple procedure for individuals with total debts of less than ?5,000. You will need sufficient regular income to make weekly or monthly payments to the court. The first stage involves a visit to your local county court to obtain the relevant forms. You will have to give details of your monthly income and outgoings, and the court will then decide on how much you can afford to pay each month. Once the order is made, it is legally binding on your creditors and gives you complete protection from them. You will then have to make monthly payments to the court, which will deduct administration charges of before paying the balance to your creditors. INFORMAL ARRANGEMENT These are really only suitable for debtors with only one or a small number of creditors as 100% acceptance by creditors is essential. Any creditor who rejects the arrangement will not be bound and can take action to recover their debt. The debtor will give full details of their monthly income and outgoings and the surplus is then divided rateably between their creditors and paid over to them each month. The advantage to both the debtor and creditors is the saving in costs compared to bankruptcy or an IVA as a licensed insolvency practitioner is not essential. A debtor can either put the deal together at no cost or use an insolvency practitioner. CONSOLIDATING LOAN This may be the only solution where the debtor has too much equity in their house. In the event of bankruptcy, creditors would be paid in full or nearly in full. Bankruptcy would only be avoided by obtaining a re-mortgage and paying creditors in full. It may be possible to release a lump sum by re-mortgage and offer it to creditors through an IVA if it would give them a higher return than under bankruptcy. |
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This document explains the relevant position only in general terms. We do not intend it to be used as formal advice about a specific situation, for which you should consult with a qualified insolvency practitioner and not rely upon this document. Portland would be pleased to advise you formally and you should contact one of the directors listed to arrange this. Portland regrets it is unable to accept any responsibility to anybody who seeks to rely on this document. |
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