HomePrivate clientsPersonal insolvencySettlement of debts to avoid bankruptcy

Even when you cannot dispute a debt, making you bankrupt may not be good for the creditor either and negotiations are often successful to resolve the debt which works for everyone.

What are my options?

The process for bankruptcy is essentially formed of two stages

  • the first is receiving a statutory demand
  • and second is being served with a bankruptcy petition. 

Depending on which stage the process is at, the options may be different on how to resolve the debt but what is important is that where any payments are made to the creditor that those payments will bring an end to the debt.

At whichever stage you are at the risk of bankruptcy will be very real.

Things to do:-

  • Work out what is affordable in relation to the debt;
  • Consider what bankruptcy will mean for both you and the creditor
  • Make a list of all of your creditors including those not pressing for payment

Things not to do:-

  • Do not ignore the problem and hope it will go away;
  • Do not be tempted to make a part payment where a statutory demand or bankruptcy petition is pending

How do I resolve this?

It is possible to settle or resolve the problem at either of the two stages in bankruptcy.

  • It might be that bankruptcy actually offers you some benefit, relieving a lot of stress and worry.
  • There may be a sum of money which you can raise and would be able to pay to avoid bankruptcy but if that sum is not acceptable to the creditor then bankruptcy might be manageable.
  • Your own personal circumstances will be different from anyone else’s and you will need to understand how bankruptcy might affect you if you are to make some important decisions for your future.
  • This is even more important where family and friends are willing to help you.  You will want to ensure that their money is put to best use.
  • You might be in the middle of remortgaging your home.  A bankruptcy petition will scupper that and you will need help to ensure that payment can be made to the creditor around the bankruptcy petition.

Let us help you today

Whatever your bankruptcy issue, our team is here to help. If your enquiry is urgent, contact Sue Brumby who will be more than happy to speak to you as soon as possible.

Our bankruptcy team at FWJ will  provide legal advice and help you to find the solution which is right for you.

A rollercoaster ride on a journey into the not uncomplicated world of insolvency law was made infinitely better, thanks to founding partner Tim Francis’ superior and expansive knowledge of this field of law. Along with a sterling effort in pursuing an important bankruptcy petition, they helped very much smooth the journey. Tim went over and above, throughout, keeping us updated through regular and clear communication. Many thanks.

A client for whom we assisted in pursuing an urgent bankruptcy matter

Key contacts

Bradley Hopkinson

Bradley Hopkinson

Trainee Solicitor

Tim Francis

Tim Francis


Sue Brumby

Sue Brumby


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