The road to managed debt

By Mr Bankruptcy

27th May 2020

Many businesses are trying to adapt to new ways of working during lockdown and for those which are also managing existing debts, this additional burden is taking a toll. For many, lockdown is exacerbating debt problems and it can be hard to know what to do next.

Managing debt is like completing a journey. It takes time, there are inevitably choices to be made between different routes and there will be bumps in the road. One client of ours, whose journey illustrates this perfectly, is a tradesman with debts of more than £400,000.

A case study in debt management

Our client needed to negotiate full and final settlement with 51 creditors. However, just after he engaged the services of James Rosa Associates, one creditor issued a statutory demand. This is a written warning that court proceedings will be started unless the debtor doesn’t pay a debt or come to another acceptable arrangement. This could have led to bankruptcy.

We continued to negotiate with all our client’s creditors for months but when he was unable to secure funds, a negotiated settlement wasn’t possible. Eventually one creditor petitioned for our client’s bankruptcy, which our client didn’t fight. We then supported him though the bankruptcy and afterwards, until he was discharged from his debt with a complete write-off for his debts.

Our client’s experience illustrates how debt management is rarely straightforward and can take considerable time to resolve. When you think you’re on track, you suddenly find yourself knocked off course and have to navigate a new path.

Discussing his experience, he says of James Rosa: “It helped so much with you contacting my creditors keeping them aware of my circumstance. When the only choice was bankruptcy, helping me fill in all the forms for the Official Receiver and coming with me to all the meetings, it really was a great help knowing you were there and you will be there for the next 12 months for me.”

In it to the end

Not knowing what options may be available to resolve debt makes your situation look out of control. We stay beside our clients each step of the journey. We understand that this goes beyond just providing debt solutions. Our client went on to say: “…thank you and your company for the comfort and support that you gave me after the failure of my business and my subsequent bankruptcy…”

My personal experience in dealing with my own debt enables me to understand clients’ journeys and the importance of how we deliver our service as well as the actual advice we provide.

James Rosa Associates

James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive, non-judgemental and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors who face unmanageable debt or are 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.

Discover 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.

How to find some “breathing space” when being pursued over debts

By Mr Bankruptcy

19th May 2020

Do you jump when your phone rings? Do you dread opening the mail or reading your e-mails? If you’re being chased by creditors, these can trigger a real sense of dread because you’re worried they contain demands or reminders for payment. The current situation has made this feeling even more acute for many small and medium business owners.

However, there are ways you can temporarily stop being chased for debt payment and give yourself some “breathing space” during which you can sort out your finances.

A breathing space to review your debt situation

Reasonable creditors and debt collectors will want to support you in finding ways to repay your debt. One way they may be willing to assist you is by agreeing to stop contacting you for a short period while you consider your debt management options. This period, normally 30 days, is referred to as “breathing space”.

Although 30 days may not seem like a long time it may be enough to take these steps:

Review and outstanding debts and get a clear picture of what is owed
Seek advice with regards to debt management options
Calculate how much you can repay monthly
Consider your next steps to continue debt repayment
Benefit from the mental relief of not being chased

You must contact creditors to agree this breathing space but during this time most letters and calls demanding payment will stop.

However, don’t forget that interest charges on debts may continue and while breathing space is included in industry codes of practice, some creditors may not follow them. However, during the coronavirus pandemic, lenders are trying particularly hard to support you so now is a good time to approach them.

“Breathing Space” is to be extended in 2021

The benefits of allowing “breathing space” are widely recognised, so the Government has announced plans to launch an enhanced “Breathing Space” period in early 2021.

This will last for 60 days and even interest, fees and enforcement will be frozen during this period. It also provides further protections for people undergoing mental health crisis treatment.

You DO have options

During a breathing space period, if you wish to seek debt advice, James Rosa Associates can advise on your debt management options, helping you to understand how each may impact your situation and support you in resuming conversations with your creditors.

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.