Personal insolvency occurs when an individual cannot meet their financial obligations, such as paying loans, credit cards, or other debts. While it may feel overwhelming, there are structured ways to address the situation and start fresh.
Signs of Personal Insolvency
- Falling behind on bills and loan/mortgage repayments.
- Creditor harassment or legal action.
- Using more credit to cover basic expenses.
Options for Personal Insolvency
- Individual Voluntary Arrangement (IVA):
Similar to a CVA, an IVA allows individuals to agree on a manageable repayment plan with creditors. - Debt Relief Order (DRO):
Suitable for those with low income and low value assets, a DRO provides a way to write off debts. - Bankruptcy:
While often seen as a last resort, bankruptcy is a legal process that writes off debts you can’t repay
What’s the Goal of Personal Insolvency?
The aim is to resolve unmanageable debt in a way that allows individuals to rebuild their financial lives. Early action ensures better options and less stress.
If you would like to know more please call us on 0116 299 4745 or email info@springfields-uk.com
