Personal Insolvency

personal insolvency

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An individual may declare themselves bankrupt, or may be so declared as a result of a creditor petition. The process permits the Trustee to investigate the debtor’s financial affairs, and provides relief from the pressure of creditors. Antony de Vries and David Solomons are Registered Trustees in Bankruptcy, and the firm has a solid base of experience in this area.

Part X Arrangements

Part X of the Bankruptcy Act provides similar powers and responsibilities to the Registered Trustee, as those available to the Voluntary Administrator of a corporate insolvency. Individuals in difficult financial circumstances who wish to reach an agreement with their creditors may seek a Part X alternative to bankruptcy. A Registered Trustee is able to work with the debtor to deal with claims, and to help resolve the problems that contributed to the solvency difficulties.

Informal Arrangements

When the quantity of creditors is small, it may be possible to negotiate with them without the need for a formal insolvency appointment. Costs can be contained by dealing informally with creditors and striking repayment arrangements.

Debt Agreements

If the debtor meets criteria concerning income, assets and debt quantum, a debt agreement may be an appropriate, reduced cost method of resolving a personal solvency problem. Similar to a Part X arrangement, a debt agreement, once ratified by creditors, releases the debtor from their debts.