Which debts can be included in a debt solution — and which can’t?

Yes. We deal with each creditor separately, negotiating the terms most appropriate to that creditor’s position.

It can, yes. HMRC occupy a particular position among creditors — they are a preferential creditor in certain insolvency proceedings, and they tend to be more difficult to negotiate with than commercial creditors in informal arrangements. In practice, this means that HMRC’s position often needs to be understood and stabilised before a wider creditor arrangement can be put in place — because the terms any informal arrangement can offer other creditors are affected by what HMRC will or will not agree. An adviser who understands the interaction between HMRC and commercial creditor positions can help sequence the approach in a way that avoids creating new problems while solving existing ones.

When a company enters liquidation, any personal guarantees signed by directors crystallise immediately — they become personal debts of the individual who signed them. The guarantee holder (typically a lender, supplier, or landlord) is entitled to pursue the guarantor directly for the full amount. Personal guarantees do not disappear with the company; they survive the liquidation and rank as unsecured personal debts. Where the combined total of personal guarantee debt and other personal liabilities is too large to manage, the options are broadly the same as for any personal debt: a negotiated arrangement with creditors, a formal IVA, or bankruptcy. The distinction matters because each option has different consequences for the home, directorship, and how long the process takes. Getting a clear comparison of those options early — before creditors begin pressing — is almost always the most important step.

The answer depends on the specific circumstances — particularly whether a lump sum is available, what assets are involved, and what restrictions are acceptable. Bankruptcy writes off all unsecured debts but carries restrictions that last for a minimum of twelve months and may affect directorship, borrowing, and certain professional licences. It also puts a trustee in a position to investigate assets and, potentially, to realise equity in property. An IVA offers some control and fewer restrictions, but requires creditor approval, and an insolvency practitioner still supervises. A full and final IVA — where a lump sum is available — is often the most efficient route because it avoids ongoing contributions, resolves the debt quickly, and leaves the individual free to carry on without the restrictions of bankruptcy. The right answer is always the one that accounts properly for the full picture, including a realistic creditor comparison of both options.