Debt Help
For free, no obligation advice on how an IVA or Debt Management solution can help eliminate debt, complete and submit our quick debt help form.
Complete this form to speak to an advisor:
LOOKING FOR DEBT ADVICE?
- Step 1: Fill in the short form and tell us more about your current finance.
- Step 2: Tell us more about yourself, so we can find an advisor to assist you.
- Step 3: We'll introduce you to a qualified advisor who will deal with your creditors on your behalf.
- Free Initial Advice
- No Obligation
- Secure Application
- Privacy Assured
IVA - Individual Voluntary Arrangement
DescriptionAn IVA is an arrangement with your creditors. It's entered into with the assistance of an Insolvency Practitioner, who will work to secure the agreement of your creditors to a payment proposal.
EligibilityTypically carrying consumer debts of £15,000 or more, you will be struggling to meet current repayments to your creditors. You may be able to pay a certain reduced amount per month towards your debt, or you may be able to release a lump sum through remortgaging your home or sale of another asset.
Advantages- Takes the pressure off
- One affordable payment per month to your creditors
- A large amount of your debt can be written off
- Fixed repayment period (normally 60 months or less)
- Creditors freeze future interest and charges
- Less stigma and publicity than normally caused by bankruptcy
- You are involved in the choice of assets made available to creditors
- Usually only suitable if you have £15,000 of unsecured debt or more
- During the IVA active period you will be unable to borrow further funds without the permission of the arrangements supervisor
- The IVA may appear on your credit file and affect your future credit rating
- Should the IVA fail, you may still be made bankrupt
- 70%, in value, of your creditors who vote (on the proposal) must agree to your proposed arrangement.
Trust Deed (only available in Scotland)
DescriptionA Trust Deed is an agreement with creditors. It's entered into with the assistance of an Insolvency Practitioner.
EligibilityTypically carrying consumer debts of £5,000 or more, you will be struggling to meet current repayments to your creditors. You may be able to pay a certain reduced amount per month towards your debt, or you may be able to release a lump sum through remortgaging your house or the sale of another asset.
Advantages- Takes the pressure off
- One affordable payment per month to your creditors
- A large amount of your debt may be written off
- It may be possible to make more favorable arrangements than under sequestration to retain assets such as the family home
- Fixed repayment period (normally 36 months)
- Your creditors cannot take further action against you, arrest your earnings, or continue to charge interest
- Trust Deeds are usually more flexible and cost less to administer than sequestration.
- Home owners may be forced to sell if creditors cannot be paid from other sources
- Debtors cannot trade on their own account or hold directorships of a limited company
- Existing arrestments and other diligence continue to be effective
- The arrangement is binding on you as well as your creditors
- If you were to default on the arrangement then the Insolvency Practitioner can petition for your sequestration
Debt Management
DescriptionYour monthly income and outgoings will be assessed. Based on your surplus income available to pay creditors, your debt management advisor will negotiate with them to arrange a lower regular payment. Your debt management advisor also deal with correspondence from your creditors on your behalf. You make one affordable payment per month which is distributed to your creditors.
EligibilityYou will be struggling to meet current repayments to creditors. Your debt level may be below the amounts usually required to enter an IVA (or Trust Deed in Scotland). You must have a certain amount that you can pay on a regular basis to clear your debt.
If you can afford to pay £100 per month or more, a debt management plan might be a good option for you.
Advantages- Takes the pressure off
- Your debt management advisor will attempt to negotiate to reduce or freeze your interest payments
- Good option for people who can afford to make regular payments to their creditors and want an easy, hassle free way to pay
- If you miss payments on a credit debt, this will be recorded on your credit reference file by your creditor. This will usually make it harder for you to get credit in the future.
- Some creditors may ask for a note to be put on your credit reference file to say you are on a Debt Management Plan
- A Debt Management Plan requires long term commitment from you to pay off all outstanding debt which can take many years dependent on the amount of debt and disposable income
Get Out Of Debt Guide
Debt can cause no end of stress and worry. It can have even more devastating consequences if you bury your head in the sand. It will get out of control and before you know it you'll feel like a prisoner of debt with no means of escape. Debt is not a life sentence. There is a way out...
Get Out Of Debt Guide to Financial Recovery
Useful Contacts
Samaritans - 08457 90 90 90 in the UK and Northern Ireland, 1850 60 90 90 in the Republic of Ireland
CCCS - tel. 0800 138 1111,
http://www.cccs.co.uk/
Citizens Advice Bureau -
http://www.citizensadvice.org.uk
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Based on your circumstances we will find the best solution for your debt problems: IVA, Debt Management or Debt Consolidation Loan. Your credit record may be affected by the service offered to you - make sure you receive a full, personalised illustration before proceeding.
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