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What are my Options?
I am Employed or Retired
It is very important that you consider all options available to you. Avoid dismissing a potential solution until you have obtained full, impartial information. The two common alternatives are bankruptcy and an Individual Voluntary Arrangement.
I am Self Employed
If you are self-employed and having financial problems, consider the following questions:
- Can my business make money?
- How much?
- Why isn't it?
- What, if anything, must change to achieve a profitable business?
In assessing your business, have you suffered a traumatic event such as the loss of a major customer, or a large bad debt? Do your work practices need to change to achieve profitability? These changes could involve the closure of some premises, and/or the redundancy of staff.
If your business, given a little time, could recover and become profitable then you should consider an Individual Voluntary Arrangement ("IVA").
If, after careful consideration, you believe it unlikely that your business can ever trade at a profit then there may be no alternative but bankruptcy.
I am Unemployed
Your options are limited by your current employment status. Keep your creditors informed of what is happening. If you are likely to obtain a job in the near future, consider making token payments. Ask that they freeze interest and charges to prevent the situation becoming worse.
If it is likely that you will be unemployed for the foreseeable future, you should consider bankruptcy. It is unlikely that you will be able to present an Individual Voluntary Arrangement to your creditors based upon contributions from income. However, a lump sum payment provided by a third party could be accepted.
Monies from the sale of an asset (eg. House) could also be accepted, but the attitude of the Department for Work and Pensions must be ascertained prior to the sale.
It is important that you obtain advice based upon your individual circumstances.
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