What can I do if I am personally liable

If you are personally liable then the normal and full remit of the court debt recovery system is available to a creditor.

This can range from:

  • County Court Judgement claim (CCJ)
  • The instruction of an enforcement agent (previously known as a Bailiff) after a CCJ is obtained
  • Seeking a third party debt order over your assets or available funds and/or a charging order over your personal property after a CCJ is obtained
  • A statutory demand
  • A bankruptcy petition, which would then bring in various anti-avoidance provisions of the Insolvency Act should you have transferred your assets within the last 5 years

There are a wide variety of possible settlement mechanisms but in simple terms they will all centre around one of the following:

  • Negotiated informal settlement with or without the provision of security over your assets
    • Paying over a lengthy period of time
    • Refinancing or selling your personal assets
    • Offering a one off immediate settlement
  • Protracted and expensive legal battle with a forced court driven outcome
  • Formal personal Insolvency solution to avoid bankruptcy – an Individual Voluntary Arrangement (IVA)
  • Bankruptcy or Debt Relief Order

The most appropriate route for you depends on your personal circumstances and the personal circumstances of your fellow trustees. Open and honest collaboration is the simplest route to achieve an appropriate settlement for all concerned.