Consumer insolvency — a genuine route out of debt that can no longer be repaid. I handle the case from the initial assessment through to discharge.
Consumer insolvency is not a failure — it is a statutory tool that allows a natural person not conducting business activity to escape a spiral of debt. I start with an honest assessment: whether insolvency is genuinely worthwhile in your situation, which assets will form part of the estate, and how long the repayment plan will last.
If the flat forms part of the insolvency estate it will be sold, but from the proceeds a sum is set aside to rent accommodation for the debtor and dependants — usually for one to two years. I assess every situation individually before filing.
Not all of them. Maintenance payments, compensatory annuities, fines and damages arising from a criminal offence, among others, are not discharged. I explain the scope of the discharge at the first meeting.
The declaration of insolvency itself usually follows within a few months of filing. Liquidation of assets and the repayment plan then follow; the plan may run for up to 36 months, and in some cases longer.
