How to prepare for your first consultation with a debt advisor
By Mr Bankruptcy
16th October 2024
Clients I meet who face an unmanageable debt and may be considering bankruptcy are usually under a lot of stress.
Many of us have never been in this situation before (I have so I do understand). But if you’ve already made the decision to do something about your problem and have contacted a debt advisor like me, then you’ve already taken the biggest step.
So, to make the next step a little easier, here are some things you need to bring to your initial meeting with a debt advisor to get maximum benefit from it.
What information do you need to bring?
On your first meeting with a debt advisor, they will need to bottom out the problem. That means full clarity on your financial situation (personal and business) and the scale of all your financial liabilities. The more information we have at this stage, the better the advice we can provide.
Firstly, we need your personal details, so have the relevant documents with you:
- Photo ID such as a passport or driving licence.
- Proof of address and status (rental agreement or proof of home ownership).
- A list of everyone living in your home.
- Proof of ownership of any significant assets you have (property, vehicles, valuables, financial assets) is also useful.
Having said that, please don’t worry if you can’t lay your hands on all the relevant documentation initially. A discussion with “ballpark” figures can also be useful to help clarify the primary issues and concerns.
Assessing the size of your problem
Getting to the crux of the meeting, we then need to build an accurate picture of the scale of your debt. People can be so overwhelmed that they aren’t fully honest with themselves about what they owe, or they forget about imminent bills coming their way.
I would ideally need a client to bring a complete list of creditors and any loan agreement documents they signed, with details and terms:
- The balance owed to each creditor.
- Interest rates and penalties.
- Period of loan and repayment due dates.
- Any details of any court, legal or recovery action and letters relating to each creditor.
- Details of any arrears on mortgage or rent.
- Documents for credit arrangements (e.g. car, furniture, retail finance, credit or store cards)
- The name of whoever is named as liable for each debt (whether it’s you, your business partner, partner, another party such as a spouse, or joint debt)
- Details of any secured loans on your home or other property
This exercise is very useful for focusing your mind. Don’t forget any details of debt from private loan arrangements with family or friends.
Working out a budget
The next thing we’ll need to do is look at your income and outgoings so that we can start working out how, if possible, you can find the money to start paying back the money you owe.
Therefore, it’s useful to bring your financial documents and details to prove your monthly and annual outgoings.
Details of monthly income
- Last three months of bank statements.
- Last three months of pay slips.
- Last three years of HMRC self-assessment tax returns if self-employed.
- If you are claiming any benefits, then a copy of your most recent benefit award letters (for each benefit).
- Proof of any rent you receive from a tenant or lodger.
- Proof of any other regular payments you receive (e.g. pension payout, dividends, interest).
Details of regular monthly outgoings
- Rental/tenancy agreements or proof of monthly rent charges.
- Mortgage details, including balance owed and proof of repayments.
- Utilities (electricity, heating, telephone, mobile phone, broadband, streaming/satellite TV services).
- Council bills, rates (a copy of your latest bill).
- Food and housekeeping costs.
- Clothing.
- Regular medical, dental and optician costs.
- Transport fares.
- Car expenses (fuel, tax, insurance, servicing, breakdown recovery).
- Child-related costs (e.g. childcare, nursery, school meals, maintenance).
- Insurance (home, contents, life, unemployment).
Other regular financial commitments (private pension, savings schemes, membership subscriptions).
I’m used to dealing with a wide range of individuals and business so there will always be other financial commitments specific to your circumstances that even I can’t imagine.
But it’s important to have a complete picture and we may end up dealing with the courts, which will expect honest and complete disclosure.
So don’t hold back – bring everything you have, and we can sort out what’s relevant during the meeting.
Taking the first step with James Rosa Associates
Admitting you have a debt problem is still a difficult thing to do, even though the system is set up now to avoid stigmatism or making debtors destitute.
If you feel overwhelmed by your debt, James Rosa Associates is a firm of debt advisors and debt adjustors who can help. We are proud of our hard-earned reputation for dealing with even the most sensitive financial problems with a supportive and non-judgemental approach.
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. 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.
Do you qualify for a Tailored Financial Reconstruction™ consultation?
If you want to deal with an unmanageable debt, you may be eligible for one of our Tailored Financial Reconstruction consultations. This is a highly bespoke service, which we have to limit 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.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.