{"id":3365,"date":"2014-01-21T15:37:31","date_gmt":"2014-01-21T15:37:31","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=3365"},"modified":"2020-10-20T11:44:40","modified_gmt":"2020-10-20T10:44:40","slug":"insolvency-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/insolvency-bankruptcy\/","title":{"rendered":"Insolvency and Bankruptcy"},"content":{"rendered":"\n

Insolvency<\/strong> and Bankruptcy<\/strong> are \nessentially both terms describing the position of a person or company \nthat is no longer able to pay their debts. Insolvency is normally used \nwhen referring to businesses, and bankruptcy vavrto individuals, however\n there are many times when the terms are used varyingly in both \ncontexts.<\/p>\n\n\n\n\n\n\n\n

What is Insolvency?<\/h2>\n\n\n\n

Insolvency is a more general term, and Insolvency Practitioners deal \nwith both businesses and individuals who have unmanageable debt. If you \nas an individual have personal debt that you can no longer manage, you \nmay end up being declared legally bankrupt, although there are a series \nof measures you can use to avoid this. An IP can help you to navigate \nand use these measures.<\/p>\n\n\n\n

\"Insolvency\"<\/figure>\n\n\n\n

What is Bankruptcy?<\/h2>\n\n\n\n

If a person is declared bankrupt, this is sometimes the result of \nthem being pursued through the court by their creditors, but in most \ncases is initiated voluntarily by the person themselves. When a person \nis bankrupt, this is a status that applies to them for a set period of \ntime, sometimes months and sometimes years, depending on the situation.<\/p>\n\n\n\n

Being bankrupt means that your assets may be sold to pay your \ncreditors, and essentially means that you lose a certain degree of \ncontrol over your own financial matters for the time being. During the \nterm that bankruptcy applies, you will not be able to get credit without\n informing potential creditors that you are bankrupt. Naturally this \ncauses serious restrictions on the ability to gain credit during this \nterm. People who practise in certain professions also face restrictions \nwithin their work life if they are declared bankrupt.<\/p>\n\n\n\n

Alternatives to Bankruptcy<\/h2>\n\n\n\n

If you are unable to make your debt payments<\/strong>, there \nmay be alternatives to bankruptcy that are available to you. For \nexample, Individual Voluntary Arrangements are often used as a tool to \navoid bankruptcy, and give people the ability to get back on top of \ntheir debts.<\/p>\n\n\n\n

An IP will be able to advise you as to the suitability of an IVA to \nyour case, and can also process and administer it for you. If you do \npropose an IVA and it is accepted, so long as you stick to the \nagreement, your debts will be settled when the IVA term is over. There \nare a number of reasons that this is preferable to bankruptcy, not the \nleast of which is the fact that your credit rating is significantly less\n damaged in the long term, allowing you to work on repairing it once the\n IVA is complete.<\/p>\n","protected":false},"excerpt":{"rendered":"

Insolvency and Bankruptcy are essentially both terms describing the position of a person or company that is no longer able to pay their debts<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[2,7],"tags":[],"class_list":["post-3365","post","type-post","status-publish","format-standard","hentry","category-bankruptcy-articles","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/3365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=3365"}],"version-history":[{"count":2,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/3365\/revisions"}],"predecessor-version":[{"id":13525,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/3365\/revisions\/13525"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=3365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=3365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=3365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}