Services for individualsServices for individuals
We don't just look after companies.
Individuals may face financial difficulties arising from corporate business activities – for instance, where creditors have been personally guaranteed, in a sole trader or partnership failure, as a result of excessive consumer debt or a combination of these reasons. At McTear Williams & Wood we understand the impact that such pressures can bring. The extent of the impact may depend on how the debts have built up and we can help with an assessment of your individual circumstances.
Dealing with a failing business is very different from dealing with excessive consumer debt. When dealing with a business, there is the real threat of the loss of an income stream. Financial problems often have a big effect on personal relationships, especially when the size of the problem comes as a suprise to one or both partners.
Much of the information provided in the 'Services for business' sections is relevant for the individual in business. Click here for further details.
Options for individual debt problems include:
Informal arrangements – these can be useful, particularly where you are dealing with only a handful of creditors. We can help you negotiate with creditors who will readily understand what their alternatives are if they see that we are involved.
Debt management plans – managed by an outside agency these are informal agreements with your creditors to accept a lower monthly payment based on what you can afford and mainly deal with consumer debt. They are not legally binding and normally do not allow any of the debt to be written off. Used inappropriately they simply put off the inevitable and end in an IVA or bankruptcy.
Individual voluntary arrangements (“IVA”) – these are formal arrangements with creditors that are legally binding on all creditors if 75% of your creditors agree. The arrangements needs to be made via a licensed insolvency practitioner and are often based on monthly contributions, however they can involve one-off settlements or a better realisation of assets. They are not suitable for everyone and it is important that you take independent advice. Our trade body R3 has issued a booklet entitled 'Is an IVA right for me' - click here for a copy of this.
Bankruptcy – this is when a trustee is appointed by the Court to sell your assets and distribute them to your creditors. For most people bankruptcy lasts for one year but the consequences of bankruptcy can stay on your credit history for up to 6 years. It is important that you understand the implications of becoming bankrupt and if there are any alternatives. Most straightforward consumer debt bankruptcies are handled by the Official Receiver, not insolvency practitioners. The advice of an insolvency practitioner should be sought if you are a sole trader or in a partnership, or if you own property or other assets.
Call us free on 0800 085 5070 for more information or to talk to someone about your situation.
McTear Williams & Wood cover East Anglia including Essex, Norfolk and Suffolk.