An insolvency lawyer
Insolvency law can refer to personal insolvency law, in which a person becomes bankrupt, or business insolvency, in which a business cannot pay its debts. To some extent these two types of insolvency are interlinked; a failed business will often create a bankrupt person. Commercial insolvency however, in which a company fails, is different and should not lead to bankruptcy of a person, except in certain circumstances. The reason for this is that a company is a separate legal entity and its debts are its own. Despite this separate legal personality, the directors of many companies give personal guarantees, particularly when the business is just starting out, as this may be the only way a bank will lend to them. If the company then fails, the director could become bankrupt.
An insolvency lawyer can assist with every aspect of insolvency. If you feel that you are personally becoming insolvent, then your insolvency lawyer can help you to petition for your own bankruptcy, or can deal with creditors if they wish to petition for your bankruptcy. It may be possible to enter into an agreement with creditors which allows you to pay back creditors on new agreed terms: this is called an Individual Voluntary Arrangement (IVA) and your insolvency lawyer can advise you on the practicalities of this. A court will often consider the possibility of an IVA if you petition for your own bankruptcy, as it gives creditors the opportunity to get some of their money back. In the event you are declared bankrupt you will usually remain bankrupt for one year, after which most of your debts will be cleared.
If you would like to obtain legal advice on insolvency, or any related issue, Caven can put you in touch with a local specialist insolvency lawyer / solicitor free of charge. So, if you have any questions or would like our help in finding insolvency lawyers / solicitor please call us on 08001 221 2299 or complete the web-form above.
- Last Updated on 09/02/2012