Escaping from unmanageable debt through negotiated settlements

By Mr Bankruptcy

29th April 2021

Did you know that it may be possible to negotiate a settlement with your creditors? This could clear your debts quicker than you had thought possible, so that you can move on with a debt free life.

What is a negotiated settlement?

If you have a lump sum of money, maybe from the sale of an asset, you could use this to clear your debts, even if the money you have doesn’t fully cover the amount of your debt. It is possible to negotiate with your creditors to make a one-off payment as full and final settlement of debts if you can agree with your creditors the amount to be repaid.

Why would creditors want to negotiate a settlement?

If you haven’t missed any payments yet, it’s unlikely that a creditor would accept a negotiated settlement. However, if you aren’t able to maintain repayments, and if your creditor feels that your financial situation is unlikely to change, then they may accept a reasonable offer instead. It could take a long time for you to settle your debts and they might decide that it’s better to recover a portion of the debt quickly rather than drag the situation on for a long period.

How James Rosa Associates help reach negotiated settlements.

A client who had been referred to James Rosa Associates had a large bill for self-assessment tax hanging over them after falling behind with payments. A statutory demand had been issued and the client was facing bankruptcy.

Once engaged to act on our client’s behalf, we contacted HMRC to make them aware of the personal situation of our client which had led to them falling behind with their payments.

HMRC were not interested in negotiating a settlement but we continued to stress the vulnerable situation of our client and this resulted in us beginning a dialogue and reaching a settlement that was agreeable to both sides. The original claim against the client was £93,664 but nearly £64,000 was written off, allowing our client to begin planning for their future again.

No two situations are the same when negotiating a settlement, but our experience enables us to work effectively so that our clients and their creditors can achieve the best result possible.

PLEASE NOTE THAT DUE TO THE INFORMAL NATURE OF THE PROCESS, NO GUARANTEE OF OUTCOME CAN BE MADE.

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 who are involved in civil or commercial disputes. Our services include:

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 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.

Could personal bankruptcy be the right option for you?

By Mr Bankruptcy

19th April 2021

Bankruptcy is a term relating to debt that most people have heard of, many associating it with negative connotations as a desperate last resort, when everything’s gone wrong. But fewer people know how it works or how it could actually be a sensible solution for dealing with your debt.

When might you consider personal bankruptcy?

If you are unable to see a way of clearing your debts, your financial circumstances are unlikely to change and you don’t have enough assets or equity in your home to cover your debts, bankruptcy may be the right solution.

In short, becoming bankrupt is a way for you to clear most types of unsecured debts. By selling assets of value such as your home or car, you can pay what you can and receive some relief on remaining debts. Usually, bankruptcy is declared by a court order initiated by the debtor. A record of bankruptcy will be placed on file for twelve months but after this, usually, you can make a new start.

However, before deciding to pursue the bankruptcy option, you must consider your particular circumstances.

What you should know about bankruptcy

Although the concept of bankruptcy, using your assets to clear your debts seems straightforward, you should be aware of the implications of being declared bankrupt:

Is bankruptcy right for you?

For more information on personal bankruptcy, you can read our Guide to personal bankruptcy in the UK. You can also get in touch with a specialist advisor who can help you understand how bankruptcy may be right for you or look at better alternative solutions.

James Rosa Associates

James Rosa Associates is a firm of debt advisors and debt adjustors. With a supportive, friendly and non-judgemental approach, we offer a full range of advice and professional services to individuals and business owners/directors who face unmanageable debt or who are involved in civil or commercial disputes. Our services include:

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 take the first steps to dealing with an unmanageable debt, or to 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.

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