Financial help is available in the form of five main debt solutions. If you have serious financial problems and owe over £15,000, the three most common solutions are an IVA (Individual Voluntary Arrangement), Debt Management Plan and, as a last resort, Bankruptcy. Call Debt Free Direct for expert, impartial advice on which debt solution might be most appropriate for you.
An IVA is often the fairest way forward for both you and your creditors if you owe more than £15,000 and are struggling to meet your repayments. A Re-mortgage or a Consolidation Loan could also be an option if an IVA is not suitable. Talk to us to find out more about each of the options.
Call us free on 0800 083 1433 to find out more.
If you are calling from a mobile just let us know and we will call you straight back.
Debt Solutions Guide
Hello and welcome to Debt Free Direct, the UK provider of debt help, advice and solutions.
Today we're taking a look at the different types of debt solutions on the market and this short guide is designed to help you choose the right one from the many options available.
If you owe more than £15,000, then an IVA or Individual Voluntary Arrangement can be an effective way of clearing your debt over a five year period, by only paying off what you can afford.
An IVA is a legally binding debt solution available to those in England, Wales and Northern Ireland.
For those in Scotland who are facing serious debt problems, then a Protected Trust Deed is the equivalent to an IVA.
Bankruptcy is another possible debt solution, but it's worth bearing in mind that even for very serious debts, bankruptcy should be viewed as your last resort, as it's the most drastic solution, with the longest lasting consequences.
When you are made bankrupt, all your debts will be cleared, with the exception of student loans, however your house and all of your assets could all be sold off to pay your creditors.
An alternative option for some people may be Debt Relief Orders.
These allow those with low incomes and little assets to file for bankruptcy, but without the associated costs.
They can also help insolvent individuals to become debt free after just one year.
However to qualify you must owe up to £15,000 and must not own property or have assets worth over £300.
Your disposable income, after all essential costs have been taken off, must also not exceed £50.
The final option available is a Debt Management Plan, or DMP, which is a debt solution used to reduce your monthly repayments on all of your unsecured debt.
Your creditors are asked to accept lower payments and to make other concessions too, such as freezing interest.
A Debt Management Plan is likely to be the best solution for people who find themselves in short-term financial difficulties, or have debts of less than £15,000.
Choosing the best debt solution
When you call Debt Free Direct you'll be able to speak directly with one of our fully trained advisors. Using our Best Advice Model, we'll make a full assessment of your situation in complete confidence and then recommend possible debt solutions which could help you overcome your financial problems.
Clearing serious debt
If your situation is serious enough, we may well recommend an IVA as an option. If an IVA is not suitable, we'll recommend other options worth considering. We'll give you all the advice you need so that you understand the choices open to you.
Call us free on 0800 083 1433. Our phone lines are open 8:00 am to 9:00 pm Monday to Friday, 9:00 am to 5:00 pm on Saturday and 10:00 am to 4:00 pm on Sunday. You can call free for an initial chat about your own financial situation.
If you are calling from a mobile just let us know and we will call you straight back.
Debt Relief Order (DRO)
This is an order granted by an official receiver to help insolvent individuals become free of debt after just one year.
What sorts of people apply for a DRO?
You can apply online through an approved intermediary if you meet the following criteria,
- owe less than £15,000
- do not have an interest in any property
- unable to meet debt payments and have a monthly surplus income less than £50
- assets do not exceed £300 (including any pension contributions made)
- vehicle worth less than £1,000
Advantages
Debts written off after one year.
Creditors cannot take further action without courts permission.
Fee of £90 is less than the cost of petitioning for bankruptcy.
Disadvantages
Not eligible if a homeowner even if there is no equity.
As with bankruptcy your employment could be affected.
Certain debts will not be written off (e.g. student loans and fines).
County Court Administration Order (CCAO)
A County Court Administration Order is made by the court under which you must make payments from your income directly to the court. The court then distribute funds between your creditors on your behalf.
What sorts of people apply for a CCAO?
You can apply to the court for an order if you owe no more than £5,000 to at least two creditors and you have had a court judgement entered against you (e.g. CCJ).
Advantages
No creditors listed on the order can take further action without the consent of the court.
The court will distribute payments for you.
Interest and charges are stopped.
If your circumstances worsen you can apply to the court to make reduced payments.
Disadvantages
Creditors can object and be left out of the order.
If you don't keep up with repayments the order can be withdrawn and creditors can pursue you again.
If the court makes an attachment of earnings order to collect payments, your employer will find out about your money troubles.
For more information please contact your local County Court.
Need more information on our Debt Solutions?
Debt solutions by their very nature are a way of taking an individual from a position of serious debt to being debt free and in control of their finances. Working out what the best option for you is a different matter and something we have been doing for over a decade.
We pride ourselves in our approach to finding the right solution for every one of our clients, which is honest, free and always the 'best advice' based on your individual circumstances. It is this approach of guiding people who need debt help that has enabled us to grow to become a brand synonymous with helping people become Debt Free.
The solutions we are able to provide access to are as you would expect, numerous, with IVAs (Individual Voluntary Arrangements) often being a good solution in certain circumstances. Debt Free Direct is in fact the UK's number 1 IVA provider.
If you need a solution to your debts and want advice from a company you can trust. Call us today.
