Personal solutions

The first step to resolving debt concerns is to contact a member of our friendly team.

When financial issues start to grow, getting the right help can be one of the hardest things to do. It is however the most important. This is why at BEACON we will offer a free no-obligation consultation. Our licensed insolvency practitioners have a great deal of experience helping many people like you to take the first step to rebuild their financial future. With offices across the south coast regions, the help and advice that will make all the difference is just around the corner.

Of course there are many forms of debt advice. We will provide independent advice at BEACON which is why our help is guaranteed to be tailored to suit you, impartial and be achievable and realistic in order to help you get back on track.

With insolvency there is always the risk of losing your home and bankruptcy but these are not inevitable - even where your liabilities are considerably greater than your assets. As licensed insolvency practitioners with a great deal of experience, we can often liaise with your creditors to agree an achievable and practical individual voluntary arrangement (IVA) or debt management plan.

Personal Insolvency Options

Debt Management Plans (DMP)

Are you unable to pay your debts as they fall due? Or are your monthly credit commitments too much?

You may be able to enter into a DMP if you are unable to pay your debts as and when they fall due. At BEACON we can assist you as to how to write to your creditors and see if a compromise and/or monthly payment can be reached/agreed.

This can for example include a timetable of how much and when you can pay on a monthly basis.

After paying your essential expenses and priority creditors, if you do have enough money left over, you may well be able to arrange a DMP with your other unsecured creditors.

A DMP is an informal arrangement with your creditors. DMP’s are often seen as a flexible plan that is able to be amended as and when required to best fit your personal circumstances.

A DMP is sometimes not the most appropriate way of dealing with your debts. This is because your creditors are not legally bound by the arrangement that you have entered into.

A DMP is informal which means that creditors are able to change their mind about the arrangement at anytime. This means that there is no guarantee that creditors will then agree to freeze all interest and charges.

A DMP may only be accepted by creditors as a temporary measure; unless from the start they know that your financial situation is unlikely to change.

DMP’s are therefore usually used as a short-term fix in some situations.

We do not operate DMP’s but we will provide you with details of responsible charities who can assist you with a DMP.

Administration Order

Has a creditor obtained a County Court Judgment (CCJ) against you?

If the answer is yes, the County Court is able to make an Administration Order.

An Administration Order is a Court based procedure where you are able to make regular payments as a contribution towards the repayment of your creditors. This is paid to the Court.

An Administration Order will only be possible where your total debts are under £5,000.

There is a guide in respect of Administration Orders produced by the Insolvency Service.

For more information call us on 02380 651441

Debt Relief Orders (DRO)

DRO’s are an alternative to Bankruptcy.

If the amount you owe to your creditors is less than £20,000 with little or no assets or no surplus income, a DRO can considered as a cost effective way of escaping the stress and burden of debt.

To be eligible for a DRO the debtor:

  • Must be unable to pay their debts as and when they fall due.
  • Have total liabilities (not including unliquidated or excluded debts) not greater than £20,000. Secured debts do not qualify but count towards the £20,000 limit.
  • Have gross assets not greater than £1000 as determined by resale value. Household furniture, bedding, tools and motor vehicles worth less than £1000 are excluded. Total allowable asset value is £1000 plus vehicle value of up to £1000.
  • You have disposable income, following the deduction of normal day to day household expenses for domestic needs, not exceeding £50 per month.
  • You must be domiciled in England or Wales, or in the last 3 years have been resident or carrying on business in England or Wales.
  • Must not have had a DRO approved within the last 6 years.
  • You must not be involved in any other formal insolvency procedure at the time of application for a DRO such as: an undischarged bankruptcy order, a current Bankruptcy Restrictions Order, a current Individual Voluntary Arrangement or Bankruptcy Restrictions Undertaking, a current Debt Relief Restrictions Undertaking or Debt Relief Restrictions Order, an Interim Order.

The Insolvency Service have produced a guide in respect of Debt Relief Order’s.

For more information as to whether a DRO is right for you, contact us on 02380 651441.


Bankruptcy can sometimes be the right and best solution to an overwhelming debt crisis.

But before you take this step – it is important that you get independent advice to make certain that this is the right option for you.

Bankruptcy is a Court Order, and once you have been adjudged Bankrupt you do not deal with your creditors. An official person, called the Official Receiver, will take control and deal with your creditors direct.

The Official Receiver, will not only take control of your assets (property and money) but will also deal with your creditors. The reason for this is, as a general rule, upon the making of a Bankruptcy Order, your assets are no longer yours.

Can Bankruptcy be the right option for you?

You may want to consider Bankruptcy if you do not have any money to pay your debts.

When Bankruptcy is over you are able to make a fresh start and the debts you had are usually written off. In many cases Bankruptcy can be brought to an end in as little as one year.

The Association of Business Recovery Professionals, R3, have produced a guide in respect of Bankruptcy’s for creditors.

The Insolvency Service have produced a guide in respect of Bankruptcy’s for insolvent persons.

For more information as to whether Bankruptcy is right for you, contact us on 02380 651441.

Individual Voluntary Arrangement (IVA)

An IVA is a formal arrangement between you and your creditors.

It is legally binding on your creditors, following approval, your creditors will not be able to continue to add interest and charges against you; your creditors will not be able to change their minds.

For those who are wishing to avoid Bankruptcy, IVA’s are often a viable alternative; this could be because of your employment status or protection of your family home.

An IVA is a contractual arrangement with your creditors and is it tailored to fit your circumstances. The payments in an IVA can be made from any of the following; income, capital, third party contributions or a combination.

It is a more appropriate arrangement for people who cannot make their monthly credit commitments in full but do have some disposable income to pay to their creditors.

If creditor’s do agree to your IVA, some of your debt may be written off upon the successful completion of the IVA. The amount written off is dependent upon your personal circumstances.

An IVA can give you more say and flexibility as to how your assets are dealt with and how payments are made to your creditors.

How long does an IVA last?

Most standard IVA’s are based on monthly payments being made for up to 5 years; but if you own your home this may be extended to 6 years to ensure that you do not lose your home. This will depend upon your personal circumstances.

When will an IVA end?

When all sums due under the agreed IVA have been paid.

The Association of Business Recovery Professionals, R3have produced a guide in respect of IVA’s. 

An IVA can give you more say and flexibility as to how your assets are dealt with and how payments are made to your creditors.

To find out if an IVA would be right for you – contact us on 02380 651441 or email Cheryl at

Credit Rating

It should be noted that a default, a debt relief order, a Bankruptcy, county court judgment or an Individual Voluntary Arrangement all have a mark against a credit record and remain logged for 6 years.

Individuals and Sole Traders

Any debts owed by a sole trader or an individual are treated the same; there will not be a distinction between personal debts and business creditors. In Insolvency personal debts and business creditors are treated the same. They are entitled to a share of your business and personal assets and property.

Are you the Spouse, Joint Owner or Partner? Is your spouse, partner or joint owner facing Bankruptcy?

At BEACON we will provide you with the advice and assistance you need to help you through this difficult period. We will advise of the implications of Bankruptcy of your partner, spouse or joint owner, on you.

Are you owed money?

At BEACON we are able to advise on the most appropriate approach to recover your money which may be via Bankruptcy. We can also advise any creditor in a Bankruptcy as to how the process works, and find out if as a creditor you likely to recover any of the debt owed.


The earlier you act, the sooner we can put you back in financial control. Call your local BEACON office today to arrange your free initial consultation and find out about your personal insolvency options. With BEACON, you discuss your affairs with an experienced insolvency practitioner, not a call-centre.