fbpx

Directors’ personal liabilities

Just when the business challenges are starting to make sense, personal difficulties can overtake you.

Book a free initial consultation

Please enable JavaScript in your browser to complete this form.

Last Updated: 28/10/2024

Heading out of the frying pan...

Individuals may face financial difficulties arising from business activities. We are happy to help with that too as part of our focus on business rescue and insolvency. 

Business related personal insolvency can arise in relation to limited liability partnerships or sole trading individuals who may find themselves insolvent.

How can McTear Williams & Wood help?

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 a 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 surprise to one or both partners. 

Much of the information provided in the ‘services for business’ sections is completely relevant for an individual in business.

Scott Earrey

Manager

Norwich office contact details:

Ipswich office contact details:

Scott is an experienced advisor to individuals encountering financial difficulties with over 25 years’ experience in dealing with insolvency cases of all types and sizes and providing creative insolvency advice and specialises in dealing with personal insolvency including complex individual voluntary arrangements and bankruptcies.

He also has extensive experience of company voluntary arrangements and liquidations and is able on his experience to provide the most appropriate solutions and advice to each situation.  Scott has led on an array of complex personal insolvency situations and over the years seen most situations that can occur in personal insolvency cases.

Options for individual debt problems include:

  • Informal arrangements – these can be useful, particularly when 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 need 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. Be very wary of so called IVA factories/specialists that can end up selling you the product they have on the shelf regardless of your needs.
  • Bankruptcy – this occurs 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 longer. It is important that you understand the implications of becoming bankrupt and if there are any alternatives. But for many people it is the best option.

Further specific advice on your personal circumstances call us on 0800 331 7417.

Related services

Latest news and insights

A guide for directors

Three out of every four clients we advise avoid a formal insolvency process altogether. However, once insolvency begins to set in it becomes incredibly difficult for directors to avoid breaching

See More ->
Scroll to Top