How Tailored Financial Reconstruction™ can help people get out of debt

By Mr Bankruptcy

27th March 2024

Many people find themselves facing unmanageable debt every year, but the reasons for getting into that position can be as varied and numerous as the people who come to us for help.

So, when we are approached by a new client, the first step is for one of our Client Directors to understand fully the scope of the problem and all aspects of the client’s circumstances. We do this by arranging a consultation as the key first step of a process we’ve developed to help them navigate a route through their problems and to a better future.

Tailoring solutions for individual cases

During this first meeting we initiate “Tailored Financial Reconstruction ™”. Financial reconstruction is basically a restructuring and renewal of someone’s financial situation in order to avoid defaulting on their debts or going into bankruptcy.

Companies do it, even nations do it, renegotiating debt, reorganising assets, looking for loans and tightening up on public spending. Financial reconstruction also works for individuals, and this is at the heart of our approach.

A personalised service.

Tailored Financial Reconstruction ™ is necessarily a bespoke approach, so we can only take on a maximum of eight new clients a month to maintain our service standards, though we’d love to be able to help more.

To qualify for a place, a new client must be resident in England or Wales, and either runs a Limited Company, or is a private individual who is a homeowner and has personal unsecured debts of £50,000 or more (for example: directors personal guarantees, overdrawn directors loan accounts, personal loans, credit cards, overdrafts, etc).

What we then do is understand the journey that has brought the new client to the point in their lives and financial situation where they have to contact us. As I said, this journey is different in every case, so it’s important for us to do the listening at this stage, and refrain from making assumptions and trying to make a predetermined solution fit.

Following on from this, we perform a detailed financial assessment of the client’s current position, discussing their own plans and objectives.

This is critical for a successful outcome because it’s all too easy early on to plump straight for a short-term situation without taking everything into account. A number of solutions may look suitable at this stage but some of them may have unforeseen and unwanted consequences which we want to avoid.

Only when we are in possession of all the relevant facts can we start giving our client longer-term advice, based on market-wide options.

Education is key to agency

We describe in detail every solution open to the client, the mechanics of how they work, and the pros and cons of applying them in the client’s very specific circumstances.

By using our trademarked approach, we aim to put the client in the best, most informed position where they can then make an intelligent decision about the best way forward.

We believe it’s critical for our clients to regain their agency in order to arrive at a solution that they can put into action for themselves and stick to. We make our recommendations, based on experience and our knowledge of the client’s situation but, ultimately, it’s always their choice.

Putting a Tailored Financial Reconstruction™ plan into action

Once we’ve identified a way forward, we take the client through the process, supporting them every step of the way either directly, through one of our in-house solutions, or by making use of one of our trusted partners in debt resolution.

For the most complex cases, more than one solution might be needed. Before engaging in the process, during the consultation, we will already have ensured that the client is fully aware of our proposed solution, how it works and the likely results when they apply it to their own unique circumstances.

We give advice and support on all options of a potential financial reconstruction plan, which can include:

Whichever combination of solutions is constructed, we will support our client every step of the way.

James Rosa Associates

James Rosa associates is a firm of debt advisors and debt adjustors. Well-known for our supportive and friendly approach when dealing with the most sensitive of financial problems, we offer a full range of advice and professional services to business owners,  directors and individuals facing unmanageable debt or are involved in a civil or commercial dispute.

We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances. Our general services include:

Do you qualify for a free Tailored Financial Reconstruction™ consultation?

If you qualify and want to deal with an unmanageable debt, Contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk and one of our Client Directors will arrange that life-changing first consultation.

Negotiating a way out of unmanageable debt

By Mr Bankruptcy

15th March 2024

In many news stories we hear about ongoing negotiations to resolve disagreements or even conflicts. As debt advisors, negotiation is one of the services we offer clients, and it has become a key tool in many of our cases. So how does negotiating help to resolve an unmanageable debt?

What is negotiation?

Negotiation is a form of dispute resolution in order to reach a mutual settlement. This is often facilitated by a trusted third party, or negotiator.

It differs from mediation in that a negotiator will represent one party’s side and the talks require both sides to come to a solution. In mediation, the mediator will be a separate entity that proposes a solution to the disputing parties.

Some benefits of negotiating a settlement

Winston Churchill once said: “To jaw-jaw is always better than to war-war” and starting a negotiation process with a creditor certainly has benefits:

On the other hand, the process can take 6-18 months to reach a deal. Neither are there any guarantees that a creditor (e.g. the bank or HMRC, etc) will be willing to negotiate. Even if they do, there’s no obligation for them to come to a legally binding settlement.

However, provided that negotiations are conducted in good faith and are honest, we find that a settlement can usually be achieved.

Some successful outcomes for clients

One client came to us after receiving a demand from his bank for nearly £370,000 under a personal guarantee, secured on his house following the liquidation of his business.

Our client wanted a quick resolution but, in our experience, the longer and harder we negotiate, the better the result we can normally achieve. Not only were we able to negotiate with his bank to save £148,000 but the bank agreed to remove the charge over his property, removing the danger of repossession.

We even take on HMRC; an accountant referred their client to us had fallen behind with his tax returns and faced a self-assessment tax bill for more than £93,000. It had come to the point that HMRC issued a Statutory Demand, and the businessman was facing imminent bankruptcy.

After taking on the case we told HMRC about his personal reasons and explained why he had fallen behind with his payments. HMRC didn’t want to negotiate initially, but once we highlighted his vulnerable circumstances, they joined a dialogue and moved to a position where both sides agreed to a final bill of £30,000. On a personal level, our client could put his debt problem behind him and get his life back on track.

Sometimes, negotiation isn’t the complete answer, but it can lead to one. Another client received a demand for £75,000 under a personal guarantee backed by the Enterprise Finance Guarantee scheme. When we looked at the documentation, we found what appeared to be irregularities in the execution of the agreement, indicating that it was mis-sold.

Despite lengthy negotiations with the lender, we had to escalate the matter and after more than two years of talks the complaint was resolved in favour of our client, to his huge relief.

How we negotiate at James Rosa Associates

At James Rosa Associates we are experienced negotiators who are ready to go in to battle for our clients, usually against more powerful parties.

As well as experience, we use negotiators with the right suite of interpersonal skills, including the ability to communicate, actively listen, ask the right questions and persuade. They are also decision makers, with emotional control and a high level of organisation.

We ensure every client is fully aware of all options open to them. When exploring whether a lump-sum payment may be acceptable for a creditor we look at how this might be found, e.g. from a family member, friend, or even a business associate.

In these scenarios, we find that even if the lump sum isn’t enough to settle the original debt in full, most creditors will entertain negotiations in good faith so long as is it makes commercial sense for them to receive something rather than just pushing for bankruptcy and receiving nothing at all.

No matter what your circumstances, the first step to tackling unmanageable debt is usually to talk to someone you can trust. A professional debt advisor could help you to navigate a path to a brighter future.

James Rosa Associates

James Rosa associates is a firm of debt advisors and debt adjustors offering a full range of advice and professional services to both individuals and business owners/directors, including:

We are well known for taking a supportive, non-judgemental and discreet approach, putting clients facing unmanageable debt at their ease and giving them hope.

We are fully authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to match their specific circumstances.

Are you entitled to a free consultation?

You may qualify for one of our free consultations. If you need to tackle an unmanageable debt or interest repayments, or want to bring a dispute to an agreeable resolution contact James Rosa Associates, ring 0845 6807217 or email us at enquiries@jamesrosa.co.uk. 

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