Why use an insolvency solicitor?

Insolvency solicitors can advise you on any aspect of insolvency law as it applies to businesses and individuals. This could be attempting to avoid liquidation or bankruptcy, or attempting to claim money owed to you by a failing business.

If you fear personal insolvency because you are unable to pay your debts, then you may need to instruct an insolvency solicitor to advise you on your options. The most obvious option is to go into bankruptcy, either because of a creditor’s petition or a debtor’s petition. A creditor’s petition is where a creditor petitions the court because a debtor owes them £750 or more. If an individual creditor cannot petition because they are not owed £750, then a group of creditors can join together to present the petition. A debtor’s petition means that the person in debt presents a petition for their own bankruptcy to the court. The petition should be accompanied by a statement of affairs detailing creditors, debts and assets. An insolvency solicitor will be able to advise you on whether or not you should present a petition for bankruptcy.

It may be possible to avoid bankruptcy by setting up an Individual Voluntary Arrangement (IVA) with creditors. You will need the assistance of a professional in order to do this as an insolvency practitioner needs to draw up proposals and supervise their implementation. An IVA will not be appropriate in all circumstances. If proposals are unrealistic or creditors do not agree with proposals, then bankruptcy will be the only option available. It is usual for creditors to attempt to come to an agreement because if the debtor becomes bankrupt, the creditors are unlikely to receive any of their money back.

If you would like to obtain legal advice on insolvency law, or any related issue, Contact Law can put you in touch with a local specialist insolvency solicitor / lawyer free of charge. So, if you have any questions or would like our help in finding insolvency solicitors / lawyers please call us on 0800 1777 162 or complete the web-form above.