Getting help with debt
Debt Relief Order
– Debt-Free after 12 Months –
100% of Unsecure Debt Written Off
No Monthly Repayments
Stop Creditors Chasing you
£90 Receiver Fee to be paid
DRO Added to Individual Insolvency Register
Restrictions to follow
IVA
– Reduce Monthly Payments –
Unaffordable debt written off
Lower Single Monthly Repayments
Stop Creditors
Legal Protection
You may not be approved by the creditors
The IVA is recorded on a public register
There are fees and charges payable within an IVA solution. These are agreed upon with your creditors as part of the proposal. The fees are incorporated into your affordable monthly payment.
May not be suitable in all circumstances. Your credit rating may be affected. Fees apply on successful applications which will be advised and built into your payment plan.
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More details on Debt Solutions
Debt Relief Order
About DROs (Debt Relief Order)?
A Debt Relief Order (DRO) is a method of debt relief for those that have a relatively small amount of debt and very few assets
Debt-Free after 12 Months
DRO Benefits
Lasts for 12 months in total at the end of which your debts are written-off.
Creditors can no longer proceed with legal action once the Debt Relief Order has been approved.
You are not required to make any monthly repayments.
Interest and charges are frozen once the Debt Relief Order is approved.
DRO Considerations
The Debt Relief Order will be recorded and have a negative impact on your credit file for a period of 6 years.
Your personal details will be recorded on the Insolvency Register which is a public record.
If your circumstances change during the 12-month period and you no longer meet the eligibility criteria, it is likely that the application will be canceled, and you will need to make alternative arrangements to pay your debts.
A Debt Relief Order may impact upon your employment; therefore, you should always check the terms of your employment contract before making an application. You are also unable to be a company director unless you have permission of the court.
Individual Voluntary Arrangements (IVA)
About IVAs
An Individual Voluntary Arrangement (IVA) is a legally binding agreement between an individual and their creditors. It is a solution that allows a person to only repay a percentage of their unsecured debt to their creditors in affordable monthly payments, usually over a fixed term of five or six years.
IVA Benefits
If you are a homeowner, your home will be protected and not put at risk of being sold.
One affordable, monthly repayment which makes your finances much easier to manage.
A set time period (usually 5 or 6 years), giving you a countdown to becoming debt free.
Once approved, creditors can no longer proceed with legal action against you.
Creditors are no longer able to contact you regarding your debts.
Interest and charges are frozen once your proposal has been approved.
IVA Considerations
There are fees payable for the work completed in setting up and managing your IVA, however, these fees are taken out of your monthly repayments and are NOT in addition to the payments made to your creditors.
An IVA will be recorded and have a negative impact on your credit file for a period of 6 years.
Your personal details will be recorded on the Insolvency Register which is a public record.
If you are a homeowner, you may be required to release equity from your home in order to help repay your debts. If you are unable to remortgage, the IVA may be extended for 12 months instead.
If you receive a windfall such as an inheritance or a lottery win, you are required to pay a proportion of this into the IVA.
Creditors may decide not to approve the proposed Arrangement.
Bankruptcy
Bankruptcy is a legally binding debt solution to resolve a debt problem that cannot be resolved. In Scotland, this is sometimes called sequestration.
Bankruptcy Benefits
Bankruptcy often lasts for only 12 months in total.
Once approved, creditors can no longer proceed with legal action against you.
Creditors are no longer able to contact you regarding your debts.
Interest and charges are frozen once the bankruptcy application has been approved.
Bankruptcy Considerations
If you own a home or possessions of significant value, these items could be sold to help repay your debts.
There is an application fee of £680, although this can be paid in installments.
You could be asked to make payments towards your debts for a period of up to 3 years.
Bankruptcy will be recorded and have a negative impact on your credit file for a period of 6 years.
Your personal details will be recorded on the Insolvency Register which is a public record.
Bankruptcy may impact your employment; therefore, you should always check the terms of your employment contract before making an application. You are also unable to be a company director unless you have permission from the court.
If you wish to see if you are eligible for Bankruptcy, our expert team of Advisors are here to help.
Debt Management
A Debt Management Plan (DMP) is an informal agreement between you and your creditors that has been negotiated, usually by a third party, to lower the monthly payments being paid to your creditors. A DMP is arranged on your behalf by a third party which can either be a debt charity or a fee charging company. If you chose to use a fee charging company, there will usually be set up fees and a monthly management fee which will normally be included within your monthly payment.
DMP Benefits
One affordable monthly repayment which is then distributed between each of your creditors.
Most contact from creditors will be dealt with by the Debt Management company on your behalf.
Creditors may agree to reduce or freeze interest and charges, although this is not guaranteed.
Debt charities offer a Debt Management Plan free of charge. Find out more from the Money Advice Service.
DMP Considerations
One affordable monthly repayment which is then distributed between each of your creditors.
A debt management company may charge fees for their services.
Such as rent, council tax and utility bills are unlikely to be included in the plan.
A Debt Management Plan is likely to have a negative impact on your credit rating, making it more difficult to obtain credit in the future.
Creditor can choose to continue with their debt collection process, which can lead to further action such as a default or County Court Judgment.
If you wish to see if you are eligible for a Debt Management Plan, our expert team of Advisors are here to help.