One of the most common reasons to use self storage is following, bankruptcy, business closure or house repossession.
Self storage can offer convenience, flexibility, privacy and is an inexpensive way to store a variety of belongings including personal assets, business assets and books and records. The terms are also flexible. Most operators require only a month to month commitment. When you no longer need the storage, you can exit without long term commitments.
Assets often have to be securely stored because they may require a valuation report from which important information can be extracted to be included in the Statement of Affairs which is presented at the Creditors’ Meeting following insolvency.
The minimum information they require will include:
- Market Value of the Machinery and Business Assets (MBA) – if they succeed in selling the business as a whole.
- The Market Value of the MBA - if sufficient marketing is conducted.
Minimum realisable value the assets must be sold without sufficient marketing possible.
- Schedule of Assets detailing the MBA. This will be used in a sale contract if the business is sold; it may also be used to monitor progress and status.
- Encumbered asset management. Determine if any equity exists (outstanding balance is less than the Market Value) and identify assets.
- Identification of third party assets
- Indication as to marketability of the assets.
A lot of users of self storage suffer from insolvency problems, such as company liquidation or are subject to an IVA. An IVA (individual voluntary arrangement) is an alternative to bankruptcy introduced by the government as part of the Insolvency Act 1986. The advantages of an IVA are; interest on the loan is frozen, legal proceedings are stopped and the overall debt is reduced.
Why is it important to get good IVA advice
When considering an IVA it’s vital to get the best advice possible, and to work with an organisation that is both professional and independent. By getting unbiased advice you can be sure that you are making the right decisions and can be confident about the choices that you make. Good IVA advice is also important because signing up to an IVA can involve a commitment of up to five years, so it’s important that you understand what you’re getting into.
What to watch out for when looking for IVA advice
There are some companies who may try to convince you to sign up to an IVA even if it’s not appropriate for you. Furthermore, some organisations offer IVA services but because they don’t specialise in them, they may not actually be the best people to take advice from.
To this end we recommend the following organisation:-
The UK Insolvency Helpline
Address: The UK Insolvency Helpline, National Administration Centre, 788-790 Finchley Road, London, NW11 7TJ
Freephone: 0800 074 6918
Fax: 0845 612 2627
Area Served: England, Scotland. Ireland and Wales
Opening/Appointment Times: Open 24 hours all year round including bank holidays
Areas of Work: The UK Insolvency Helpline is a national telephone helpline for people with debt problems in England, Scotland, Ireland and Wales. The service is free, confidential and independent. The service has existed since 1987 and was set up in conjunction the credit industry.
The service provides self-help advice to its callers and also produces written self-help packs and fact sheets to back this up. The service can also assist callers with the setting up of IVA, Debt Management Plans, Bankruptcy and other insolvency arrangements.