15 Sample Petitions for Insolvency

Sample Petition Seven

Subject: Petition for Individual Voluntary Arrangement (IVA) – Self-Employed

Dear Insolvency Practitioner,

I, Sophie Roberts, a self-employed graphic designer, hereby petition for an Individual Voluntary Arrangement (IVA) to address my current financial difficulties. Due to a significant decline in client contracts and the impact of the COVID-19 pandemic on my business, I have accumulated unsecured debts totaling £60,000.

Despite my efforts to adapt my business and reduce expenses, I find myself unable to meet my financial obligations. The debts include business loans, credit card balances, and outstanding invoices from suppliers.

I propose an IVA as a means to repay a portion of my debts over six years. Under this arrangement, I would make monthly payments of £750, which would be distributed among my creditors. I am confident that with the support of an IVA, I can continue to operate my business and gradually improve my financial situation.

Please find attached a detailed list of my assets, liabilities, income, and expenditures, as well as a proposed repayment plan. I am available to provide any additional information or documentation as required.

Thank you for your consideration of my petition.

Sincerely,

Sophie Roberts

Sample Petition Eight

Subject: Petition for Debt Management Plan

Dear Debt Management Company,

I, Oliver Wilson, hereby petition for a Debt Management Plan (DMP) to address my current financial difficulties. Over the past few years, I have accumulated unsecured debts amounting to £25,000, primarily consisting of personal loans and credit card balances.

Despite my best efforts to manage these debts, I find myself struggling to make the required minimum payments each month. My income has recently been reduced due to a change in employment, making it even more challenging to keep up with my financial obligations.

I believe that a DMP would provide me with the support and structure needed to repay my debts sustainably. By working with your debt management company, I hope to negotiate reduced monthly payments with my creditors and consolidate my debts into a single, manageable payment.

Please find attached a detailed list of my debts, creditors, income, and expenditures, as well as the required DMP application form. I am available to provide any additional information or documentation as needed.

Thank you for your consideration of my petition.

Sincerely,

Oliver Wilson

Sample Petition Nine

Subject: Petition for Company Voluntary Liquidation

Dear Insolvency Practitioner,

On behalf of DEF Limited, I, Emma Johnson, in my capacity as director, hereby petition for a Company Voluntary Liquidation (CVL) to wind up the company’s affairs. Despite our best efforts to maintain profitability, DEF Limited has suffered significant losses and is unable to meet its financial obligations.

The company has exhausted all available options to restructure its debts and continue trading. The directors have concluded that CVL is the most appropriate course of action to ensure an orderly liquidation of the company’s assets and the fair distribution of proceeds to creditors.

We propose the appointment of an insolvency practitioner to act as the liquidator, who will oversee the liquidation process, realize the company’s assets, and distribute the proceeds to creditors by the prescribed order of priority.

Please find attached a detailed report outlining the company’s financial position, a list of assets and liabilities, and the required CVL documentation. We are available to provide any additional information or assistance as needed.

Thank you for your consideration of this petition.

Sincerely,

Emma Johnson Director, DEF Limited

Sample Petition Ten

Subject: Petition for Individual Voluntary Arrangement (IVA) – Sole Trader

Dear Insolvency Practitioner,

I, James Taylor, a sole trader operating a small retail business, hereby petition for an Individual Voluntary Arrangement (IVA) to address my current financial difficulties. Due to a combination of reduced footfall, increased competition, and the impact of the COVID-19 pandemic, my business has accumulated unsecured debts totaling £80,000.

Despite my efforts to adapt my business model and negotiate with creditors, I find myself unable to meet my financial obligations. The debts include business loans, supplier invoices, and tax arrears.

I propose an IVA as a means to repay a portion of my debts over five years. Under this arrangement, I would make monthly payments of £1,200, which would be distributed among my creditors. I am confident that with the support of an IVA, I can continue to operate my business, gradually improve my financial situation, and avoid personal bankruptcy.

Please find attached a detailed list of my assets, liabilities, income, and expenditures, as well as a proposed repayment plan. I am available to provide any additional information or documentation as required.

Thank you for your consideration of my petition.

Sincerely,

James Taylor

Sample Petition Eleven

Subject: Petition for Debt Relief Order (DRO) – Vulnerable Individual

Dear Insolvency Service,

I, Sarah Thompson, hereby petition for a Debt Relief Order (DRO) to address my current financial difficulties. As a vulnerable individual with a disability and limited income, I have accumulated unsecured debts totaling £10,000, primarily consisting of utility bills, council tax arrears, and catalog debts.

My current financial situation makes it impossible for me to repay these debts in full. I rely on disability benefits as my sole source of income, which barely covers my essential living expenses. I have no assets or savings to offer towards the repayment of my debts.

I believe that a DRO is the most suitable option for my circumstances, as it would provide me with much-needed relief from the stress and pressure of my debts. I understand that a DRO would place restrictions on my financial activities for one year, but it would also allow me to focus on managing my health and well-being.

Please find attached a detailed list of my debts, income, and expenditure, as well as the required DRO application form. I am available to provide any additional information or documentation as needed.

Thank you for your consideration of my petition.

Sincerely,

Sarah Thompson

Sample Petition Twelve

Subject: Petition for Partnership Voluntary Arrangement (PVA) – Professional Services Firm

Dear Insolvency Practitioner,

We, the partners of LMN Partnership, a professional services firm, hereby petition for a Partnership Voluntary Arrangement (PVA) to address our current financial difficulties. Due to a significant loss of clients and the impact of the COVID-19 pandemic on our industry, our partnership has accumulated substantial debts and is unable to meet its financial obligations.

The partnership proposes a PVA as a means to restructure its debts and continue providing services to our clients. Under this arrangement, LMN Partnership would make monthly contributions of £15,000 to be distributed among its creditors over three years. The partnership would also implement a restructuring plan to streamline operations, reduce costs, and focus on core service offerings.

We believe that a PVA is the most suitable course of action, as it allows the partnership to avoid dissolution while providing a fair and equitable solution for its creditors. LMN Partnership is committed to fulfilling the terms of the arrangement and working towards long-term financial stability.

Please find attached a detailed proposal outlining the partnership’s assets, liabilities, income, and expenditures, as well as a proposed repayment plan. We are available to provide any additional information or documentation as required.

Thank you for your consideration of this petition.

Sincerely,

The Partners of LMN Partnership

Sample Petition Thirteen

Subject: Petition for Individual Voluntary Arrangement (IVA) – Joint Application

Dear Insolvency Practitioner,

We, Robert and Jennifer Wilson, hereby jointly petition for an Individual Voluntary Arrangement (IVA) to address our current financial difficulties. As a married couple, we have accumulated unsecured debts totaling £90,000, primarily consisting of personal loans, credit card balances, and outstanding bills.

Despite our combined efforts to manage these debts, we find ourselves unable to meet our financial obligations. Our income has been impacted by recent job losses and reduced working hours, making it increasingly challenging to keep up with the required payments.

We propose an IVA as a means to repay a portion of our debts over six years. Under this arrangement, we would make joint monthly payments of £1,000, which would be distributed among our creditors. We are committed to working together to fulfill the terms of the IVA and gradually improve our financial situation.

Please find attached a detailed list of our assets, liabilities, income, and expenditures, as well as a proposed repayment plan. We are available to provide any additional information or documentation as required.

Thank you for your consideration of our joint petition.

Sincerely,

Robert and Jennifer Wilson

Sample Petition Fourteen

Subject: Petition for Company Voluntary Arrangement (CVA) – Small Business

Dear Insolvency Practitioner,

On behalf of PQR Limited, a small retail business, I, Thomas Brown, in my capacity as director, hereby petition for a Company Voluntary Arrangement (CVA) to address the company’s current financial difficulties. Due to a combination of reduced consumer spending, increased competition, and the impact of the COVID-19 pandemic, PQR Limited has accumulated significant debts and is struggling to meet its financial obligations.

The company proposes a CVA as a means to restructure its debts and continue trading. Under this arrangement, PQR Limited would make monthly contributions of £5,000 to be distributed among its creditors over three years. The company would also implement cost-cutting measures, negotiate with landlords for rent reductions, and explore new revenue streams to improve its financial position.

We believe that a CVA is the most appropriate course of action, as it allows the company to avoid liquidation while providing a fair and reasonable solution for its creditors. PQR Limited is committed to fulfilling the terms of the arrangement and working towards long-term financial stability.

Please find attached a detailed proposal outlining the company’s assets, liabilities, income, and expenditures, as well as a proposed repayment plan. We are available to provide any additional information or documentation as required.

Thank you for your consideration of this petition.

Sincerely,

Thomas Brown Director, PQR Limited

Sample Petition Fifteen

Subject: Petition for Debt Management Plan (DMP) – Single Parent

Dear Debt Management Company,

I, Laura Evans, a single parent, hereby petition for a Debt Management Plan (DMP) to address my current financial difficulties. Over the past few years, I have accumulated unsecured debts amounting to £20,000, primarily consisting of personal loans, credit card balances, and outstanding utility bills.

As the sole provider for my two children, I find myself struggling to make ends meet and keep up with the required debt payments. My income is limited, and a significant portion goes towards essential living expenses and childcare costs.

I believe that a DMP would provide me with the support and structure needed to repay my debts sustainably while prioritizing the well-being of my family. By working with your debt management company, I hope to negotiate reduced monthly payments with my creditors and consolidate my debts into a single, manageable payment.

Please find attached a detailed list of my debts, creditors, income, and expenditures, as well as the required DMP application form. I am available to provide any additional information or documentation as needed.

Thank you for your consideration of my petition.

Sincerely,

Laura Evans

Conclusion

These fifteen sample petitions for insolvency cover a range of scenarios and types of insolvency proceedings.

From individual voluntary arrangements for sole traders and self-employed individuals to company voluntary arrangements for small businesses and partnerships, these examples provide a starting point for those seeking to navigate the complex world of insolvency.

It is important to remember that each insolvency case is unique, and the specific details and circumstances of an individual or business will determine the most appropriate course of action.

Seeking professional advice from insolvency practitioners, solicitors, or debt management companies is crucial in ensuring that the chosen insolvency solution is tailored to the specific needs and goals of the petitioner.

By understanding the key components and language used in these sample petitions, individuals and businesses can better prepare themselves for the insolvency process and take the first steps toward finding a way out of their financial difficulties.

With the right support and guidance, insolvency can be a means to achieve a fresh start and a more stable financial future.