Alternatives Available

When you establish that there is a debt problem, the next logical step is to seek a viable solution. If you have a business with a steady cash flow that you believe has some future, you may wish to contact all or some of your creditors directly to explain your situation. Perhaps an informal arrangement can be made that benefits both you and your creditors.

As the number of creditors increases, informal arrangements are more difficult to control. Accordingly, more formal re-organization procedures may be necessary which will require the involvement of a Trustee/Chartered Insolvency Practitioner (a CIP).

The Trustee will review the business' current position and future prospects with you as well as your personal financial position. The status of claims of different types of creditors including governments and landlords will be reviewed in detail. After obtaining all information and discussing same with you, the Trustee can advise you of viable solutions which may include; a proposal under the Act, a receivership with a potential buy-back, or a bankruptcy.