James Rosa Associates helps clients write off more than £20 million in debt

By Mr Bankruptcy

26th April 2024

When you face what looks like an insurmountable debt mountain, any relief can make all the difference, not only to your ability to clear a debt, but also to your mental wellbeing.

James Rosa Associates is proud to have arranged a total of £20.6 million* in debt write-off for the people who have come to us for help over the past 14 years.

Personal and business debts can overwhelm all kinds of people and organisations in all sorts of ways. We’ve represented a hugely diverse group of clients (see some examples below) and used a variety of tools at our disposal to lighten their burden and help them get their lives back on track.

And we mustn’t forget to acknowledge the creditors we negotiate with, for their pragmatism and reasonableness in accepting a fair settlement, so that both sides come away with something from a bad situation.

Negotiated settlements

One path for a client is a negotiated settlement in which a creditor accepts a lump sum payment, whether from the client or a third party such as a family member. Even if it doesn’t settle the debt in full, it makes more commercial sense than forcing a bankruptcy, and potentially receiving nothing.

And by staying out of the courts, it minimises costs and benefits both parties more, although negotiations can be lengthy, and the creditor isn’t legally obliged to accept a settlement.

Who do we help?

Our debt consultants have helped a variety of clients, both individuals and businesses, over the years:

Case Study 1: A widow keeps her family home

We were referred to one client by an insolvency practitioner after an enquiry from a probate lawyer.

Her husband had sadly passed away leaving significant debts, not only from a failed business, but to HMRC as well as credit card debt and a car lease. He had an investment property in his name but selling it wouldn’t have raised enough to settle all the claims against his estate.

By the time we were engaged, the creditors were threatening to declare the estate insolvent so that the family home (held in joint names) could be sold to discharge the debts – an extremely distressing outcome for our client.

Thankfully, we were able to work closely with all creditors to achieve settlements that not only saved the family home but left a little cash from the sale of the investment property to help her rebuild her life after her loss. From an initial claim against the estate of £184,000 we were able to write off over £85,400.

Case Study 2: A company avoids insolvency and saves jobs

We were referred to a company in dispute with one of their trade creditors who were about to crystalise a £942,000 debt on their balance sheet. If this happened it would make the company insolvent, leading to liquidation, bringing down two connected businesses and making people redundant. In addition, the director had provided a personal guarantee of £250,000 which would have resulted in his bankruptcy.

We were brought in by the client company to negotiate a full and final settlement to avoid insolvency. We performed our due diligence, analysing a substantial body of financial documentation about the business and director to present a sound commercial argument based around the likely outcomes of litigation.

The creditor eventually accepted £264,000 in full and final settlement of all outstanding liabilities and released the director from his personal guarantee, writing £678,000 off an initial claim of £942,000.

Seek advice first

If some personal debt is written off, your credit score can still be harmed, making it more difficult for them to borrow money in the future. You may also tie yourself into a repayment programme that you can’t sustain. And be wary of adverts offering quick fixes!

Of course, you can push the nuclear button and opt for personal bankruptcy. It may be your only option, and we do help clients with personal assisted bankruptcy where this is the case. However, while usually 100% of your unsecured debt is written off, bankruptcy does have lasting effects on your life and financial record, which we’ve discussed before, and usually leaves your creditors with nothing.

If you are unable to pay all your debts, it’s always worth contacting your creditors, being transparent with them and asking if they are willing to write off the debt. You may be surprised.

But it also pays to seek specialist advice first, exploring the best options in your circumstances before you commit to a solution. Bringing in a professional debt advisor can also help get you a better settlement when dealing with negotiations.

Debt advice from James Rosa Associates

James Rosa associates is a firm of debt advisors and debt adjustors. Our debt consultants have a reputation for our friendly and supportive approach to dealing with even the most sensitive 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, including negotiating debt write-off.

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 Tailored Financial Reconstruction™ consultation?

If you want to deal with an unmanageable debt, you can apply for one of our Tailored Financial Reconstruction consultations. This is a highly bespoke service, and we have to limit the number of clients we take on to eight per month.

Contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk and one of our case directors will arrange an initial consultation.

*correct at the time of writing

Where can I find debt advice in the UK?

By Mr Bankruptcy

16th April 2024

If there’s one common theme to my blog posts, it’s to encourage anyone in the unenviable situation of facing unmanageable debt to seek advice. I’ve been there myself so I know how difficult it can be to own up and ask for help.

Another issue is whether that advice will be well informed or helpful? The problem is that anyone might be willing to give advice, but how can you tell if they know what they’re talking about?

Of course, it’s vital to discuss your financial situation with those who are going to be affected by it – a spouse or business partner. It’s only fair that they are warned how your situation could impact on them. But they may also be in a position to offer help and valuable moral support at a time when you are likely to feel depressed.

In addition to some moral support, you will also need a way forward out of your debt problem, and this is most likely to come from professional financial advice.

Fortunately, in the UK we have a long history of helping people to get out of their debt and there are plenty of sources of expertise you can draw from, ranging from charities to specialist commercial debt advisors. The problem then becomes: which source of advice do you choose?

Debt advisors

It pays to look around, and ask for recommendations for a good source of advice depending on your situation, but here are some more options for anyone living and working in the UK, much of it offered free of charge:

UK Government website and its Moneyhelper service. You can find a wide list of charities and organisations that can help with free advice and personal debt and insolvency services, both in England and Wales, and in Scotland and Northern Ireland which have their own legal structures and solutions.

Citizens Advice (formerly called CAB) This is a good place to start for an individual with a personal debt problem, A Citizens Advice case officer can help you to collect all the information you need on your debts, which ones you need to pay off first, and give budgeting help on how to reduce your outgoings and how to pay back what you need to.

Salvation Army. Not an organisation that you might think of first off, but the ‘Sally Army’ has been helping people in dire straits since 1865 and debt has always been a particular burden on the poor.

National Debtline. A registered charity that’s been giving free, impartial and expert debt advice to more than 100,000 people a year since it was founded in 1987.

Step Change Debt Charity and Payplan. These sites offer someone to talk to online or by phone for a range of different debt levels.

Paying services. such as James Rosa Associates offer UK-wide professional help on debt management for both individuals and business organisations. An initial consultation is often free, and a consultant will then direct you to services particular to your circumstances.

Always ensure your debt advisor is qualified

Remember that providing money or debt advice to clients is a regulated activity and any organisation which has set itself up in this field should hold Financial Conduct Authority (FCA) permissions, unless exempt from authorisation.

For additional reassurance you can choose a member of a recognised and regulated UK professional body such as the Institute of Money Advisors.

Taking the first step

One of the most forward-thinking economic reforms introduced by the Victorians was to provide alternatives to throwing debtors into prison. As a result, we are fortunate in the UK that there exists an extensive market in professional debt, bankruptcy and insolvency services.

So, if you feel overwhelmed by your debt, there will be someone out there able and willing to help.