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
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.