Am I Insolvent?

Bankruptcy should really only ever be used by insolvent debtors who can not find another debt solution. Debts Management would always recommend that you consider other routes first, such as:

• Debt Management Plan
• IVA 

Am I Insolvent? Should I Consider Bankruptcy? 

It is important to understand what insolvency means, and the definition of insolvency is:

(a) Not solvent; not having sufficient estate to pay one's debts; unable to pay one's debts as they fall due, in the ordinary course of trade and business; as, in insolvent debtor.
(b) Not sufficient to pay all the debts of the owner; as, an insolvent estate.
(c) Relating to persons unable to pay their debts.

So if you are "unable to pay one's debts as they fall due" then it is important that you seek expert help.

Although Bankruptcy is an option for insolvent debtors, it is a very extreme solution and should only be used after all other debt solutions have been fully explored. You should be aware than bankruptcy is a public process where the debtor loses control over their finances, and assets can be sold to repay debts. 

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)