Insolvency – Individual


Eoin Ryan


The economic downturn has impacted hugely on many business people, sole traders, company directors and investors who now find themselves in an untenable financial position requiring professional financial advice. Business failures, falling incomes, the collapse in property values and equity investments (investments which were often funded by borrowings), are some of the factors which have radically altered the wealth and solvency of high net worth individuals, entrepreneurs and company directors.

The prevalence of personal guarantees (PGs) has also altered the insolvency landscape for the individual and increasingly the most dangerous course of action is inaction. Banks, creditors and landlords who hold PGs are prepared to act on them if arrears mount up and there is no engagement from the defaulter. Our experience has shown that where defaulters address insolvency issues and engage with their creditors in a proactive manner solutions can be reached.

We review the individual’s financial position to assess the level to which they can or cannot meet their financial obligations. We assess the level of assets and debts and whether there is any potential for debt restructuring. We can engage with creditors and financial institutions to negotiate settlements.

We compile a statement of affairs and advise on the most appropriate option such as:

  • An informal scheme of arrangement: a voluntary agreement to restructure or reduce the amount payable over an agreed repayment period, requiring the agreement of creditors.
  • A formal scheme of arrangement: a court approved agreement to discharge the liabilities requiring agreement by at least 60% of the creditors, which is then imposed on all creditors.

We can also negotiate on behalf of clients with secured debts.