Since the onset of the debt crisis, the number of debt advisers has increased exponentially. Some saw a business opportunity, whilst others needed a job and fulfilled employment opportunities. Some advisers take their role seriously, others do not. Some have experience, training and qualifications whilst others do not.
So, how do you find a reputable organisation that can provide you with quality advice to see you through bankruptcy? In my opinion, it would help you to understand the nature of bankruptcy. You can then decide what you want from the advice you receive and set about finding your adviser.
During the period of my bankruptcy, I remember researching for days. I also sought advice from a solicitor. Even then, questions remained. My partner at the time needed questions answering and so did I. Bankruptcy can be full of uncertainty, but by seeking credible advice you can greatly reduce that uncertainty. Hence, an adviser that can provide support throughout the period of the bankruptcy would be a great asset.
In my opinion, appropriate support does not come in the fashion of a two hour phone call to complete the forms. It takes time to digest the information you are given. It will take your own research too. There are three main stages in the bankruptcy process: deciding on going bankrupt, the bankruptcy process and finally post discharge recovery. You will have many questions at all stages and will need advice on all stages. Expect a good adviser to coach you through each. You will need clear explanations, documentation and open communication lines for support. Please be aware that this level of advice may cost you.
Once you have decided what you want from the advice you seek, you can choose an adviser. Make some phone calls; enquire about the service on offer and the adviser’s credentials. Also, check the credentials of the organisation for which the adviser may work. The service should be provided under a supply of service contract if you are paying a fee. It should detail the adviser’s responsibilities under the contract. Remember, you will have obligations too.
Credentials will vary. Considering bankruptcy is a legal matter, you should seek someone who is suitably qualified. If during any stage of the advice you are informed that there are complex or contentious matters, it is advisable to speak with a solicitor. The law society’s find a solicitor may help. A licensed insolvency practitioner are the insolvency professionals that have to be qualified and receive regular training. They are formally appointed to posts such as bankruptcy trustee, are regulated and should know the bankruptcy regime very well.
There are also insolvency advisers who are qualified but are not licensed insolvency practitioners. As always, before paying for advice ask for their qualifications and experience in writing. My opinion would be to stay clear of any adviser who does not hold an insolvency qualification.
It’s worth mentioning that some advisers do not hold qualifications but have been extensively trained. Some of the charities and larger debt advice companies will employ the services of a training company or insolvency professionals to oversee the training. Without a bankruptcy adviser being tested, it is difficult to know their level of knowledge.
There are a number of qualifications out there, which I will detail at a later date. One example is the Certificate of Proficiency in Personal Insolvency. This is the qualification that I attained. It tests a candidates knowledge on insolvency matters including IVAs and bankruptcy. Candidates are also expected to have knowledge of informal solutions such as a debt management plan. The Insolvency Practitioners Association issues it. You should ensure that your adviser holds a suitable qualification and keeps up to date with legislation.
All bankruptcy advisers should hold a consumer credit license. You can check this by searching the consumer credit register.