Frequently Asked Questions

Q: What is the difference between IVA, DRP and IDRP?

IVA is a statutory court-supervised restructuring requiring creditor approval. DRP negotiates with individual banks or finance companies to reduce interest and extend terms. IDRP consolidates debts from multiple creditors into one unified plan.

Q: What should I do if I receive a Statutory Demand?

A Statutory Demand precedes winding-up proceedings. Companies must pay or reach agreement within 21 days, or apply to set aside within 18 days if there is a genuine dispute. Individuals should seek legal advice promptly to assess IVA or bankruptcy options.

Q: How many creditors must approve an IVA?

Under the Bankruptcy Ordinance, creditors holding 75%+ of total debt (among those voting) must approve the IVA proposal. We prepare comprehensive repayment plans and financial documents before the meeting.

Q: What's the difference between debt relief companies and solicitors?

Solicitors are regulated and can file IVAs with the court, issue formal letters and represent you in court. Some debt relief companies are unregulated intermediaries with opaque fee structures.

Q: What is the bankruptcy application process?

When restructuring is not viable, we assist with preparing bankruptcy petitions, filing with the High Court, and liaising with the Official Receiver. We also provide support for discharge applications after the bankruptcy order.

Q: What is the difference between employees' compensation and negligence claims?

Employees' compensation follows strict liability — employers must compensate work-related accidents regardless of fault. Negligence claims require proving legal fault but typically yield higher damages. Both can proceed in parallel with set-off of EC payments.

Q: Should I sign an insurer's settlement offer?

Do not sign a full-and-final release without legal advice. Insurers often understate PSLA, lost earnings and future medical costs. A solicitor can assess fair compensation and negotiate.

Q: What can I claim after a traffic accident?

Common heads include PSLA, loss of earnings, medical and rehabilitation costs, travel expenses and care costs. Serious cases may attract additional damages depending on evidence.

Question 1

Are there alternatives to bankruptcy?

Answer

Bankruptcy can restrict professional qualifications and travel. We typically recommend an Individual Voluntary Arrangement (IVA) first — a court-supervised debt restructuring where creditors holding 75%+ of debt approve a repayment plan, avoiding bankruptcy.

Question 2

What is the difference between IVA, DRP and IDRP?

Question 3

What should I do if I receive a Statutory Demand?

Question 4

How many creditors must approve an IVA?

Question 5

What's the difference between debt relief companies and solicitors?

Question 6

What is the bankruptcy application process?

Question 7

Is there a time limit for traffic accident claims?

Answer

Under the Limitation Ordinance, personal injury claims must be filed within 3 years of the accident; employees' compensation claims within 2 years. We recommend contacting a solicitor as soon as injuries stabilise.

Question 8

What is the difference between employees' compensation and negligence claims?

Question 9

Should I sign an insurer's settlement offer?

Question 10

What can I claim after a traffic accident?

Question 11

Can I claim if the driver fled or had no insurance?

Question 12

Can I back out after signing a provisional sale agreement?

Answer

A provisional sale agreement is legally binding once signed. Backing out forfeits the deposit (typically 3–5%) and may require paying the agent's commission. Have terms reviewed by a solicitor before signing.

Question 13

What is title investigation?

Question 14

What documents are needed for a mortgage?

Question 15

Can I send a solicitor letter for unpaid invoices?

Answer

Yes. A solicitor letter is a formal first step with legal weight. If payment is still refused, proceedings may follow in the Small Claims Tribunal, District Court or winding-up petition for companies.

Question 16

How are shareholder disputes resolved?

Question 17

Can I see a solicitor before a police interview?

Answer

Yes. You have the right to contact a solicitor before police interview. Your solicitor may attend and advise on answering questions.

Question 18

Can I appeal if bail is refused?