Debt Management Advice from Bridge Newland – Midlands
If your Company has debt and you are struggling to keep on top of your payments then you may consider debt management as a way to repay your company debt and avoid legal action. Debt management is where an unregulated & unlicensed company:-
- Seeks to negotiate a reduced settlement figure with the creditors of the insolvent Company and/or
- Seeks to propose an informal arrangement with the creditors of the insolvent company whereby they pay their agreed settlement debt over a specified period of time.
Care should be taken when considering using a specialist debt management company due to them being unregulated as often their high charges reduce the repayment sums to creditors and their arrangements do not legally bind creditors to a deal meaning creditors can still enforce legal action to recover their debt at any point.
We often hear many reports of debt management companies taking payments from insolvent companies but only very low amounts being paid over to the Company’s creditors and therefore formal insolvency processes usually result in a better outcome for all parties.
Stuck in a Debt Management Plan Already? – We Can Help You Get Out…
Bridge Newland Limited is not a debt management Company; our staff, based in Rugby Warwickshire, in the Midlands, are highly qualified and our licensed Insolvency Practitioner, Ben Robson, is authorised by the Insolvency Practitioners Association to undertake formal insolvency cases such as Liquidation.
If you are already in a debt management arrangement then you can get out. This is done by proposing a formal insolvency process or by simply giving notice to the debt management company and your creditors. However care should be taken as your creditors will still expect you to pay what the debt management company has arranged with them therefore any default in this regard could result in legal action by your creditors unless an alternative solution to debt management is being proposed.
Should you wish to propose a insolvency arrangement to the creditors (to repay the debts of the Company) we can assist you with this formally by way of a Company Voluntary Arrangement (“CVA”) whereby if approved, all creditors will be bound by the terms of the proposal. Please see our packaged solution in this regard or contact our Midlands office in Rugby, Warwickshire free on 0800 612 6197. All initial consultations are free.