KR8 Advisory Ltd KR8 Advisory Ltd

Personal Insolvency

With many myths and misconceptions surrounding personal insolvency, it is imperative to receive the correct advice on the options available and the implications of them.

KR8 Advisory’s extensive experience means we are suitably positioned to help both debtors and creditors in navigating the complex challenges associated with personal insolvency.

We are regularly engaged to undertake the following formal processes:

When you incur a bad debt, having the right strategy for recovery is paramount. The extensive powers afforded to a Trustee in Bankruptcy enable robust investigations, resulting in maximised asset recovery. Creditors understandably become frustrated when a debtor attempts to resist payment. This may be due to a genuine dispute or a ploy to hide or dissipate assets. If the latter is a genuine concern, then as part of the overall strategy the appointment of an Interim Receiver may be a valid consideration in order to protect and manage a debtor’s estate after a bankruptcy petition has been presented but the hearing date for the Order is sometime in the future. The IR appointment ensures assets are preserved and creditors’ interests safeguarded in the post-petition period. 

An IVA is a legally binding agreement that enables the realisation of a debtor’s assets on a consensual basis.

There is no set duration – every proposal is bespoke depending on the debtor’s asset position. Creditors vote on the proposal and if more than 75% of those voting approve the proposal then all unsecured creditors are bound by it. If an IVA is the right option for all stakeholders, we can assist in preparing a proposal that is sensible, realistic and offers tangible advantages over Bankruptcy.

This can often be a difficult balancing act but is one we are well versed in advising on. We know what will and will not work.

Although often considered the last-resort option, Bankruptcy can open many doors to maximise recoveries. A Trustee in Bankruptcy steps into the shoes of the debtor and has extensive powers to recover documents and property located in the UK and abroad. Costs of investigation and recovery are agreed by creditors and payable from assets realised in the estate. Bankruptcy compels the debtor’s cooperation and can facilitate the recovery of assets that have been transferred or hidden. A Trustee has access to different forms of funding if litigation is necessary. 

If you are a creditor or executor of a deceased estate that may be insolvent, an Insolvency Administration Order (IAO) may be the best option to administer the estate safely and effectively.

It provides a structured and legally recognised method for handling the debts of a person who has died insolvent. By placing the estate under the jurisdiction of the insolvency court, it ensures the estate is administered fairly and in accordance with insolvency legislation and provides the mechanism to reverse certain transactions, such as the usual rules of survivorship, to recover property and discharge liabilities to creditors.

It also avoids the potential of personal liability for the Executor/Personal Representative.

Our service explained

Joanne Wright, Managing Director, explains the services and benefits clients can expect to receive when working with our Personal Insolvency division.

Why engage KR8?

  • We have an experienced team that works exclusively on personal insolvency assignments.
  • We are commercial and solutions focused.
  • We always aim to maximise recoveries and minimise costs.
  • We are in it for the long haul and maintain the resilience and
    commitment to progress matters to a resolution.
  • We are honest and realistic and will always manage clients’ expectations.
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How KR8’s Personal Insolvency team can help you

KR8’s specialist personal insolvency team has extensive experience in navigating complex challenges and providing clear strategic guidance.

We understand the difficulty that facing insolvency brings and we handle such situations with sensitivity. We do not judge – we simply provide clear and impartial advice.

oUR eXPERTS

Joanne Wright

Managing Director

Joanne Wright

Managing Director

07876 740 982

Joanne leads the Personal Insolvency practices at KR8 and Quantuma. She has worked in the restructuring industry for 35 years and spent 25 of those specialising in personal insolvency.

She has extensive experience advising debtors and creditors, striving to find effective solutions that benefit all stakeholders.

A large part of Joanne’s time is spent identifying and recovering assets located in the UK and abroad as part of contentious bankruptcy appointments, working diligently in order to optimise returns.

Joanne is a Licensed Insolvency Practitioner and Fellow of the Insolvency Practitioners Association.

Contact us

For debtors, receiving accurate advice on both the practical and legal implications of the various options available is imperative. If you think we can help you, reach out to a member of our Personal Insolvency team for an initial conversation to explore how we can support you.

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