Insolvency Disputes (Bankruptcy)
Our Civil Litigation Solicitors in Nuneaton and Warwickshire frequently provide advice on issues arising from personal insolvency, including bankruptcy, Individual Voluntary Arrangements (IVAs), and Debt Relief Orders.
We have one of the most successful and active civil litigation practices in Nuneaton and Warwickshire. Being involved in an insolvency-related dispute is incredibly stressful, especially in the initial stages when you might be unsure of when or even if you will receive payment. If you are facing personal bankruptcy, concerns such as retaining your family home and earning an income will be prominent. Our expertise lies in relieving you of this burden and using our knowledge to develop an effective strategy to resolve the dispute quickly and cost-effectively.
We are a diverse, multi-lingual law firm based in central Nuneaton, utilising top-tier technology to deliver streamlined, modern, and highly effective civil litigation advice and representation. Our extensive experience has earned us a strong reputation for excellence with the UK’s best Barristers and Queen’s Counsel, forensic accountants, industry experts, insolvency professionals, and budget advisors. When necessary, we collaborate with these experts to support our Civil Litigation Department. Our clients also benefit from our ability to engage the country’s most respected expert witnesses.
Common Questions About Insolvency Disputes Concerning Individuals
What is bankruptcy?
Bankruptcy occurs when a person is unable to pay their debts or has breached the terms of an IVA. Bankruptcy can be voluntary, or a Creditor can apply to the Court if they are owed £5,000 or more. If the Debtor has violated an IVA’s terms, an Insolvency Practitioner can also initiate a bankruptcy application.
Bankruptcy has significant consequences for the Debtor, including the sale of most assets and property by a Trustee to pay Creditors. Obligations to make debt-related payments from personal income can last for three years, and the stigma of bankruptcy can affect a person’s reputation for many years.
Our Bankruptcy Solicitors have successfully contested numerous bankruptcy applications, excelling in this specialised area of law from our Nuneaton office.
How does an Individual Voluntary Arrangement (IVA) work?
An IVA is an alternative to bankruptcy, essentially a contract between the Debtor and their unsecured Creditors to either:
- Settle outstanding debts by paying a proportion as a full and final settlement, or
- Arrange for the debts to be paid over time, possibly with the Debtor’s property and assets held in trust for the Creditors’ benefit.
Debtors must use their income, assets, or both to fund debt repayments. Contributions from third parties such as family and friends are also permissible.
To establish an IVA, Creditors holding 75% or more of the debt must agree. The IVA’s terms bind both the Debtor and the Creditors. Secured Creditors, like mortgage lenders, usually remain outside the IVA, with their rights unaffected without their consent.
Will I lose my home if I am declared bankrupt?
If you enter voluntary bankruptcy or the Court declares you bankrupt, the Official Receiver may sell your home to release funds to pay your Creditors.
You can avoid losing your home by selling your beneficial interest in the property (the value of your share less any loans and/or mortgages) to your spouse or another family member.
Our Bankruptcy Solicitors in Nuneaton and Warwickshire can advise on how to keep your home if you face bankruptcy. It is crucial to contact us immediately so we can assess your situation and advise on your options.
Why Choose Us?
Clients choose and recommend us because we deliver results and often settle disputes outside of Court. Our Solicitors will handle your case, ensuring you understand the available options and receive the advice needed to protect your interests.
Insolvency disputes are stressful for both Debtors and Creditors. Our Personal Insolvency Dispute Solicitors possess the expertise to swiftly identify the core issues and advise on the best resolution strategy. As a proactive and responsive law firm, we keep our clients informed throughout the process. You can trust us to leverage our technology and expertise to resolve your dispute and help you move forward.
Cocks Lloyd Solicitors provides exceptional Insolvency Disputes (Bankruptcy) and Civil Litigation services to clients. People choose and recommend us not just in Nuneaton, Tamworth, Atherstone, Hinckley and Leicester, but across Warwickshire, Staffordshire, Leicestershire and the West Midlands, and the whole of the UK, because we get results.
To receive expert advice and representation regarding Insolvency Disputes (Bankruptcy) and Civil Litigation, please contact us using the form below, call us on (0247) 6641642, email via the Request a Callback form on this contact page.