Steps to take in a similar situation.
Controversial media personality Katie Hopkins has suddenly been forced to sell her family home and enter into an Individual Voluntary Arrangement (IVA) in a bid to avoid bankruptcy.
Katie Hopkins’ financial circumstances come after she lost a libel case against her by British writer and campaigner Jack Monroe in which the Judge ruled that Hopkins had caused "serious harm" to Monroe's reputation with a tweet she posted back in May 2015. Hopkins was ordered to pay £24,000 in damages to Monroe and further costs of £107,000 to Monroe’s legal team.
As a result of her tweet, Katie Hopkins lost her jobs as a Daily Mail columnist and LBC Radio presenter. This, along with the amount she was ordered to pay by the court was probably the catalyst to Katie seeking to enter into an Individual Voluntary Arrangement.
An IVA is a formal agreement between a person and their creditors, enabling them to pay their debts over a period of time. The agreement is formal and a legal debt solution. This means it is approved by the court and your creditors have to stick to it. It is often a route people take to avoid a property being repossessed.
Provided that Katie Hopkins agrees to the terms of her IVA which she has entered, she is unlikely to be made bankrupt, although if she does not agree, her supervisor could report the matter, and a bankruptcy order will be made.
Due to the severe consequences of bankruptcy, which normally include losing your home, an inability to be a company director and a long-standing effect on your credit rating – It is easy to see bankruptcy is not something which Hopkins would be entered into lightly.
If you have legal grounds to challenge a “debt” including the debt which is being disputed on with highly genuine and substantial grounds, or if you have a cross-claim that takes away or exceeds the debt claimed against you, there are steps that can be taken to prevent a bankruptcy order being made!
Taylor Bracewell advise anybody to check if there are other ways you can deal with your debts before you apply for bankruptcy.
Not all costs orders are as extreme of those which are ordered against Hopkins. But as well as Taylor Bracewell being able to advise whether you have legal grounds to prevent a bankruptcy order being made, we can also advise you of the various funding options that may protect you against any daunting costs.
If you require any advice in relation to insolvency – contact Emma Cornell, Taylor Bracewell’s Head of Litigation on 01302 965 252 or email@example.com.