I’m employed or own my own home

If you have personal debt problems and own your own home or are in full time employment, often the most worrying concern will be the impact that insolvency proceedings will have on your ability to retain your home and your job.

Provided that you are able to maintain your mortgage and interest on other secured debts it is unlikely that your home will be repossessed as there are alternatives.

1. Bankruptcy

If you are subject to a bankruptcy order the trustee is entitled to the benefit of your share of any equity in the property, but will look to try to realise the interest without a forced sale taking place.

This can be achieved through a voluntary sale, a third party paying the trustee an equivalent amount, or after you have been discharged from bankruptcy, if you are able to raise the money yourself.

2. Voluntary arrangement

Alternatively, you may be able to avoid bankruptcy and protect your home by proposing an individual voluntary arrangement on terms that are acceptable to your creditors.

3. Working out the best option

Whilst being insolvent is probably not good for your career, there are very few occupations that are directly effected by bankruptcy and even less affected by an individual voluntary arrangement.

Whilst bankrupt, you are legally prevented from being a member of parliament, or a company director, and some professions have their own rules on bankruptcy, but unless you are employed in a financially sensitive capacity, it is unlikely that being made bankrupt would result in you losing your job.

You may not, act as a Justice for the Peace, be a member of the local authority, take any part in the promotion, formation or manangement of a limited company,  without permission of the court.

If you are in full time employment or own a property with equity and are concerned about your financial position we can explain the options available to you and the likely implications.