What does it typically involve?
This process allows individuals in financial difficulties to make an offer to their creditors in settlement of their debts whilst protecting their assets.
It enables an individual, who is struggling with the level of personal debt, to rationalise their situation and to bring their financial affairs into order. They can protect their assets from creditors, allowing for an orderly realisation of assets.
The process is available to individuals, who are in business as a sole trader or partnership, and to individuals who are employed, and can take the form of a sale of existing assets or a promise of future payments (contributions) or a combination of the two.
The process can last for a period of up to five years.