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Personal Insolvency Legal Services

Aaron & Partners’ team of specialist bankruptcy solicitors and personal insolvency solicitors have vast experience in advising individuals and company directors on the relevant insolvency procedures and their implications for any given situation. We provide a range of personal insolvency services, assisting with negotiations with creditors and trustees in bankruptcy, as well as advising on possible annulment applications.

Contact our team today to discuss your situation. 

What is an Individual Voluntary Agreement? 

An individual voluntary agreement, also known as an IVA, is a formal agreement between an individual and their creditors to repay their debts over a period of time. Under an IVA, the individual agrees to make regular payments to their creditors, and in return, the creditors agree to freeze interest and charges on the individual's debts. An IVA is a legally binding agreement, and it can provide a way for individuals to repay their debts in a more manageable way. 

What is Bankruptcy? 

Bankruptcy is a legal process that individuals or businesses can use to manage or eliminate their debts if they are unable to pay them. The process is overseen by the Insolvency Service, an executive agency of the UK government. 

To begin the bankruptcy process, an individual must petition the court to declare them bankrupt. This can be done by the individual themselves or by one of their creditors. The court will then review the petition and, if it is approved, will issue a bankruptcy order. 

Once the bankruptcy order has been issued, the individual's assets will be seized and sold to repay their creditors. An official receiver, appointed by the court, will manage the bankruptcy process and will work to sell the individual's assets and distribute the proceeds to their creditors. 

The individual's debts will be frozen and they will be released from their obligation to repay them. However, bankruptcy will remain on their credit record for six years and may affect their ability to obtain credit or enter into certain contracts during that time. 

The bankruptcy process in the UK can be complex and it is recommended that individuals seek legal advice before petitioning for bankruptcy. 

How could Bankruptcy affect me as a Company Director? 

If a limited company goes bankrupt, the directors of the company may be personally liable for the company's debts. This means that the creditors of the company can try to recover the money they are owed by pursuing the directors personally, even if the directors have no personal assets. 

Additionally,  being a director of a bankrupt company can have negative consequences for the director's personal credit rating and may make it difficult for the director to obtain credit or to be appointed as a director of another company in the future. 

If a limited company director is concerned about the potential impact of bankruptcy on their personal finances, it is recommended that they seek legal advice as soon as possible. 

Key Contact

Mark Davies

Mark Davies

Partner | Head of Restructuring & Insolvency


Mark is the Head of the Restructuring & Insolvency team and advises Insolvency Practitioners on a national level in relation to insolvency cases. He also advises unsecured creditors in relation to their claims in insolvent estates.

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