DebtFree Haven

Personal Insolvency is when an individual puts forward an application to the courts to have all their outstanding unsecured debts written off. It is also commonly known as a Bankruptcy. Once the application is submitted, all debts are dissolved and creditors must legally stop all chasing for any outstanding debt and instead direct any queries to the Official Receivers.

Personal Insolvency provides a way out for anyone who can show they are no longer able to maintain their creditor commitments and give reasons why. As it is a legal matter, it should not be taken lightly. However this does not mean that it is not a good way to become debt free, all depending on your circumstances.

What we do for you

• We provide a free, initial face-to-face consultation at a location convenient for you - your home, our offices or any public place. Our consultant will explain all our solutions and identify the best one for your circumstances. There is no obligation to sign up after receiving our advice. However, please note that whilst the initial assessment is free-of-charge, signing up to Debtfree Haven's financial plans will incur fees from the outset.
• We communicate with all your creditors, informing them we are working on your behalf and set up creditor's agreement to ensure any harassment for payment stops.
• We aim to take over all correspondence from creditors, but until your solution is fully in place, creditors can still choose to contact you; however, all payments will be managed by us. You will need to supply us with a list of all the creditors who are contacting you.
• We assist you with all relevant paperwork involved for the court process pre- and post-bankruptcy. We ensure the document is completed to the Court's standard, whilst keeping you informed at every step of the way.
• We are beside you throughout the Court process. A consultant will also accompany you on the day if requested to ensure everything goes smoothly. Additionally, after that date we continue to assist with any contact from the Official Receiver (Court official) until you are discharged.
• We are always available to answer any questions or clarify any details.

The Courts have placed some restrictions on anyone that wishes to put forward an application in order to monitor the numbers. Below are the restrictions that apply to an individual:

• The Enterprise Act 2002 which came into force on the 1st April 2004 allows an individual to petition for their Personal Insolvency which now lasts between 6-12 months instead of the previous 2-3 years.
• You are only allowed to hold one basic bank account. (This is only for the duration of 6-12 months you are within the insolvency.)
• There are certain limits as to the amount of credit you can obtain whilst in a bankruptcy. (If over £500 you must inform the creditor that you are in a bankruptcy. This is until you are discharged.)
• If you are a director of a company, or it is stipulated within your work contract that you cannot go bankrupt then a personal insolvency is restricted (however as a director you can step down to the position of chairman and then put forward the application).
• Any assets you have such as a house with over £1000 equity, car worth over £2500 or life insurance which can be surrendered may be released to contribute towards your creditors balances. This can be prevented by offering to buy back your equity in your home. If your car is under £2500 and you use it to go to work this may be exempt or if your life policy cannot be surrender then it can't be taken into account as part of your assets. However each case is individual and we can advise you on each of these assets and what the potential outcome is.
• If you have a disposable income (money left over after all essential bills and living expenses are paid) the court may ask for you to make monthly payments for three years towards your debts. This is known as an Income Payment Order (IPO). The order is dependent on your income and expenditure and therefore if there are any changes to either of these within the three years, they can be submitted to the Official Receiver for the payment to be suspended, reduced or cancelled.