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“Advice on business
related personal debt problems”

Personal Insolvency Services

A director, shareholder, or member of an owner-managed business is likely to have supported business borrowing, such as bank loans, asset finance or lease commitments by way of a personal guarantee, an indemnity or by acting as a guarantor or surety, which may be secured against personal assets.

Whilst a business is able to meet its rent and ongoing loan repayments, either directly or by paying the director, shareholder, or member of an owner-managed business, enabling them to repay personal ‘business loans’, this is not an issue. Should the business, however, find itself in financial difficulty this may well impact directly upon their personal financial position. A sole trader or partner, without the protection of limited liability, is also personally liable for the debts of the business.

We provide here information and advice for directors, shareholders, members, sole traders and partners with business related personal debt problems.  Individual Voluntary Arrangements (IVAs) can provide a solution to debt problems whilst, possibly, enabling them to continue to support the ongoing trading of the business.  IVAs are not, however, suitable for everyone and included on this website are links to useful guidance notes on the alternative options such as bankruptcy or an informal arrangement also known as a debt management plan/agreement. Individuals who owe more than the value of their assets or are unable to repay their debts and who are being pursued by their creditors for settlement have a number of alternative options.

These options can include:

  • An Individual Voluntary Arrangement (IVA)
  • Debt consolidation
  • A debt management plan
  • A Debt Relief Order
  • Bankruptcy

We can explain:

  • The consequences of bankruptcy
  • How to avoid bankruptcy
  • The requirements of an IVA

We will:

  • Advise you on the options available
  • Prepare an IVA proposal to be sent to your creditors for their approval

Whichever option you choose, you should commit yourself to only what you can afford to pay.

Contact our team to discuss your case further. When considering the alternative solutions available professional advice should be sought from Mercer & Hole. Our Corporate Restructuring partners and directors are licensed insolvency practitioners who can provide you with advice and further explanation.

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