If your situation has gotten to the point where you need the advice of an Insolvency Practitioner, it’s vital that you get the information you need. A good IP will ensure that you understand your choices, as well as their possible consequences.
Overview
The first thing an IP will probably want to do is take a good look at your finances, and work out what choices you are going to have. In order to do this they will need access to your income, outgoings, assets and a list of all of your debts. You will need to make sure you give them all of the information they need, so that they can advise you effectively, and so that any processes they initiate are going to be effective.
Depending on your situation, an IP may propose a number of things, particularly if you have assets such as property. One of the things that they may propose is using an Individual Voluntary Arrangement.
IVAs
If your IP does suggest that you use an IVA, this will involve them drawing up a proposal for you. The proposal will include you offering to pay a certain amount of your borrowing back to your creditors over time. Sometimes IVAs will also involve such methods as releasing equity from your home in order to pay your creditors back at least some of what you owe them.
It’s vital that you understand the consequences of the proposal that’s being put forward, and you should take the time to ask your IP about any aspect of it that you do not find clear. It is sometimes also the case that, should your circumstances change during the IVA, your IP may suggest making changes to your payment terms. Again, make sure that they talk the possibility of this through with you before going ahead with anything.
Decisions
If you have debts that you can’t keep on top of, the chances are you will have to make some difficult decisions. When the stress of debt is getting to you it can be tempting to act quickly and make rash decisions. In this situation it’s best to try and take your time to make sure you do not commit to anything you may later regret. It’s also well worth getting the best of your IP’s experience and expertise, and taking the time to discuss things fully with them.