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Getting help with debt 

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Debt Relief Order

– Debt-Free after 12 Months –

DRO Benefits

100% of Unsecure Debt Written Off
No Monthly Repayments
Stop Creditors Chasing you

DRO Disadvantages

£90 Receiver Fee to be paid
DRO Added to Individual Insolvency Register
Restrictions to follow

IVA

– Reduce Monthly Payments –

IVA Benefits

Unaffordable debt written off
Lower Single Monthly Repayments
Stop Creditors 
Legal Protection

IVA Disadvantages

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.

– Elegibility Check –

You could include the following debts:

Stop Creditors Contacting You

Unaffordable Debts Written Off

Consolidate & Reduce Repayments

Interest & Charges Frozen

If a plan is agreed then fees will apply with full transparency. Your credit rating may be affected. May not be suitable in all circumstances.

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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
Duration

Lasts for 12 months in total at the end of which your debts are written-off.

Legal Protection

Creditors can no longer proceed with legal action once the Debt Relief Order has been approved.

Payments

You are not required to make any monthly repayments.

Interest & Charges

Interest and charges are frozen once the Debt Relief Order is approved.

DRO Considerations
Fees

There is a one-off fee of £90 to process your application through an Approved Intermediary.

No homeowners
Not available to homeowners
Credit Rating

The Debt Relief Order will be recorded and have a negative impact on your credit file for a period of 6 years.

Public Register

Your personal details will be recorded on the Insolvency Register which is a public record.

Change in Circumstances

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.

Employment

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
Assets Protected

If you are a homeowner, your home will be protected and not put at risk of being sold.

Affordable Payment

One affordable, monthly repayment which makes your finances much easier to manage.

Timeframe

A set time period (usually 5 or 6 years), giving you a countdown to becoming debt free.

Legal Protection

Once approved, creditors can no longer proceed with legal action against you.

Peace of Mind

Creditors are no longer able to contact you regarding your debts.

Interest & Charges

Interest and charges are frozen once your proposal has been approved.

IVA Considerations
Fees

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.

Credit Rating

An IVA will be recorded and have a negative impact on your credit file for a period of 6 years.

Public Register

Your personal details will be recorded on the Insolvency Register which is a public record.

Equity Release

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.

Windfalls

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.

Approval

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
Duration

Bankruptcy often lasts for only 12 months in total.

Legal Protection

Once approved, creditors can no longer proceed with legal action against you.

Peace of Mind

Creditors are no longer able to contact you regarding your debts.

Interest & Charges

Interest and charges are frozen once the bankruptcy application has been approved.

Bankruptcy Considerations
Assets

If you own a home or possessions of significant value, these items could be sold to help repay your debts.

Fees

There is an application fee of £680, although this can be paid in installments.

Payments

You could be asked to make payments towards your debts for a period of up to 3 years.

Credit Rating

Bankruptcy will be recorded and have a negative impact on your credit file for a period of 6 years.

Public Register

Your personal details will be recorded on the Insolvency Register which is a public record.

Employment

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
Affordable

One affordable monthly repayment which is then distributed between each of your creditors.

Peace of mind

Most contact from creditors will be dealt with by the Debt Management company on your behalf.

Interest & Charges

Creditors may agree to reduce or freeze interest and charges, although this is not guaranteed.

Free Service

Debt charities offer a Debt Management Plan free of charge. Find out more from the Money Advice Service.

DMP Considerations
Timescales

One affordable monthly repayment which is then distributed between each of your creditors.

Fees

A debt management company may charge fees for their services.

Priority Bills

Such as rent, council tax and utility bills are unlikely to be included in the plan.

Credit Rating

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.

No Legal Protection

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.