Supporting you to take back control of your debts
By Mr Bankruptcy
21st June 2019
Taking back control when you are in a debt situation that you feel is out of control and overwhelming is a crucial step. Working with people to help them understand their situation and to empower them to make decisions about their options is integral to our debt advice approach as debt counsellors and debt adjustors.
A case study: being empowered to make a choice
We recently supported an individual who had personal debt totalling more than £116,000 as well as a breakdown of his marriage. Our analysis of his situation showed that bankruptcy was the best way to deal with the debts. However, the client did not want to take this path, feeling he had the earning potential to repay his creditors.
We therefore negotiated settlements and smaller interim payments with his creditors, agreeing he would repay debts if he could generate the necessary income. If this didn’t happen, we would then support him through bankruptcy. In the end our client was not able to generate the income he’d hoped for so we then supported him throughout the bankruptcy process, including attending court with him.
We remained on retainer until bankruptcy was discharged and within six months were also supporting his wife through her bankruptcy. In the end we were able to get £116,311 of debts written off.
Partnering our clients
At James Rosa Associates we work with clients enabling them to make informed choices about how they address their debt situation. We go through an extensive consultation process called “Tailored Financial Reconstruction™”, taking the time to understand fully how they arrived at their situation and what their longer-term objectives are. This is essential to make sure that the options we present will suit their needs now and in the future.
There is no “one size fits all” solution when it comes to debt advice. Each approach has its advantages and disadvantages and the impact these can have will vary depending on individual circumstances.
Only once we fully understand our client’s situation do we provide them with detailed information about possible solutions. It’s integral to how we work to keep clients fully appraised of their options so they’re more confident about making decisions going forward.
We do make our recommendations but the decision on the next step is ultimately our client’s as they take back control of their situation. The client I describe above was able to make those choices and, as is often the case with debt solutions, when the situation changes so do the options but we were there to support, advise and take action throughout on his behalf.
James Rosa Associates
James Rosa associates is a firm of debt counsellors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes.
Our services include:
● Insolvency support
● Negotiated settlements
● Personal assisted bankruptcy
● Civil and Commercial Mediation
Find out if you qualify for a free consultation
If you need to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
Why is it difficult to talk about debt?
By Mr Bankruptcy
19th June 2019
An article in the Independent in April stated that the majority of people find it easier to talk about mental health issues than debt. This is particularly concerning when 44% of adults in the UK are hiding debts of more than £4,000. So why is it so difficult to talk about debt and does it really matter if we don’t?
Don’t mention the “D” word
Talking about debts seems to be an incredibly sensitive issue. Why are these conversations so tough?
● People don’t want to worry others with their problem
● People fear being judged and worry about how others will perceive them
● Debt can place considerable strain on relationships and people hide it to avoid the risk of a break up
● Concerns that debt will impact employment or employability
● Debt can be a cause of conflict, which people tend to avoid
Why talk about debt?
Debt feels like a very personal matter, but there are many reasons why it’s worth taking those difficult first steps and talking about your situation:
● Debt causes stress and can lead to serious mental health issues such as anxiety and depression
● Dealing with debt when coping with mental health challenges then becomes an even greater struggle
● Worrying about debt can cause a loss of sleep, exacerbating stress
● Not talking to those close to you may alienate them if they think you don’t trust them
● If you have a joint bank account or bills/credit arrangements are in your partner’s name too, your debt could affect their credit rating
● Talking to others helps you realise you are not alone and those you talk to may be able to offer advice from their own experiences
Actually, let’s talk about debt
Even though a conversation about debt may be difficult, it doesn’t mean they shouldn’t happen and these bits of advice I give to clients may help you too:
● Be prepared. Think about what you want to say and the information you need to share
● Choose a time and place where you won’t be disturbed
● Be prepared to consider the situation from both perspectives. How will this news make others feel? Prepare yourself for negative responses to help manage your defensive reactions
● If you’re raising the conversation with someone in debt, don’t be judgemental. Look at how to address the debt rather than apportion blame
Finally, there’s advice… and then there’s advice. I recommend you contact a professional debt advisor to help you understand fully your situation, so you feel more confident in dealing with it and talking to others.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjusters. With a supportive and non-judgemental approach we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes.
Our services include:
● Insolvency support
● Negotiated settlements
● Personal assisted bankruptcy
● Civil and Commercial Mediation
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
How Individual Voluntary Arrangements (IVA) can help you manage your debt
By Mr Bankruptcy
3rd June 2019
There’s often a feeling of lack of clarity and being out of control when debts become unmanageable, and this quickly piles stress onto what’s already a difficult situation. However, making an IVA to consolidate your debts can help you to take control of your life again.
What is an Individual Voluntary Arrangement (IVA)?
An IVA is an agreement reached with your creditors that determines how much needs to be repaid over a specific amount of time. It’s a legally binding arrangement which you and your creditors must abide by.
What debts can be covered by an IVA?
IVAs can be used to cover most debts, which are usually unsecured, such as:
● Personal loans
● Payday loans
● Council tax arrears
● Income tax and national insurance arrears
● Store cards
● Credit cards
● Catalogues
However IVAs won’t usually cover mortgage repayments and some other, such as court fines, child support arrears or some hire purchase agreements.
How does an IVA work?
To put an IVA in place you need the help of a qualified insolvency practitioner to act on your behalf. They will assess what is a practical level of regular payments given your personal circumstances and negotiate with creditors to get an agreement in place. See my earlier blog post about getting professional advice.
Creditors usually take assurance that the oversight of an insolvency practitioner means realistic terms are being negotiated. It could also mean you don’t end up repaying the full amount of debt because the repayment is reassessed on what you can afford, allowing for essential living costs.
Under the IVA multiple debt repayments are consolidated into a single payment, which is particularly helpful if you have more than one creditor, with agreements usually lasting for five years. After this period the arrangement with creditors will end and debts will be repaid.
Why are IVAs a good debt management option?
An IVA offers a sense of relief and reassurance as it means:
● You no longer manage multiple debt payments because they are consolidated into one
● Repayment is based on what you can afford
● Interest and charges on debts are frozen so they don’t continue to increase
● You are protected against creditors taking legal action once the agreement is in place
● At the end of the IVA period all debts covered by the arrangement are either repaid or written off, so there’s no burden of ongoing debts
● The insolvency practitioner will work with your creditors so you don’t have to deal with them directly
What should you consider before agreeing to an IVA?
As with all debt management solutions, you’ll need to consider whether an IVA is the best approach for you. For example, if you’re a property owner you may need to re-mortgage your home, and if you come into money, this may need to be paid against your debts.
An IVA can also affect some jobs. Seeking advice from a specialist practitioner will help you make an informed choice regarding an IVA, or find a more suitable alternative to help you become debt free in the best possible way.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes.
Our services include:
● Insolvency support
● Negotiated settlements
● Personal assisted bankruptcy
● Mediation
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.