Personal Insolvency

Whatever your personal financial difficulties as an individual, it is always better to seek advice sooner, rather than later. There is something to be said for the famous quote “a problem shared, is a problem halved”. All too often, people are consumed by their financial troubles but the sooner you get some professional advice, the more likely it is that any issues can be resolved more easily.

Everyone and every scenario is different and our team are dedicated to providing the best advice, tailored specifically to your situation.

It may be that your financial troubles are not sufficient to warrant a formal insolvency process. In many cases, we find that some practical and pragmatic advice about cashflow management and budgeting is enough to solve the problem. However, in those situations where this is not enough, the main options for personal insolvency processes are: -


When an individual cannot pay their debts as and when they fall due, an application can be made to sell their assets and realise money to pay their debts. This application (known as an Order) can be made either by the individual or it can be enforced by the Court.

An Insolvency Practitioner is appointed (as Trustee) to sell the assets and settle debts in a specified way.   

Bankruptcy still carries a lot of stigma but in the right situation, it can be the best option for an individual to clear their debts. It is a process that generally lasts 12 months, after which point the individual’s debts are cleared or written off in full.

Individual Voluntary Arrangements (IVAs)

An Individual Voluntary Arrangement (IVA) is a formal procedure whereby an individual agrees with their creditors to pay part or all of their debts (often on a monthly basis), over a period of time (often over 5 years).

The initial proposal to creditors must be made by a ‘Nominee’, which must be an Insolvency Practitioner. If an agreement is made, it must be monitored regularly by a ‘Supervisor’.

Our team can assist in presenting an IVA proposal to creditors and subsequently act as a Supervisor of the Arrangement.

If an individual makes payments in line with an IVA agreement, the debts covered by the Agreement are cleared at the end of the process.

An IVA is often the chosen route where an individual owns property (e.g. their own house). 

Other options can include Debt Management Plans and Consolidation Loans which our team would always consider before you make any final decisions about the next steps.

Debt Relief Orders ("DRO")

A DRO is a process that allows you to deal with certain debts and may be available to you if you:

  • owe £30,000 or less
  • don’t own your own home
  • don’t have other assets (or items of value)
  • have limited surplus income

If a DRO is approved, you make payments towards certain debts, with the balance of those debts being written off at the end of the process. A DRO usually lasts 12 months but can be amended if your position improves.

A DRO application must be made together with a special DRO adviser. The application is submitted to the Official Receiver, for which there is a £90 charge. A DRO adviser cannot charge you for their assistance in completing the application.

Further information on DROs and details of your closest special adviser can be found at

Get in touch to find out how we can help you with Personal Insolvency.

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