Bankruptcy is a formal debt solution for those who have an amount of debt which they cannot repay.
In a bankruptcy, most debt types are written off. Deciding to go bankrupt is a very serious step that involves fees and can impact different areas in your life, such as your job or home.
What are Credit Cards?
If you are struggling with credit card debts there is UK legislation which can help you to write off up to 85% of debts* you cannot afford.
*Debt write off of between 25-85% is realistic, the write off amount depends upon your own individual financial circumstances and is subject to creditor approval
What is Debt Consolidation?
Thousands of people in the UK are struggling with debt, which can be very stressful. So getting the right advice should be very important to you.
All debt problems can be solved, so if you’ re struggling with debt, try not to worry, but do not ignore your problem it’s vital to take action now and get in control of your finances.
What is an IVA?
UK legislation allows you to write off up to 85%* of your debts with an IVA…
Individual Voluntary Arrangements (IVA’s) were introduced by the Government in the 1986 Insolvency Act as an alternative to bankruptcy. They were put in place to help anyone in serious debt finding it difficult to make their monthly payments. If you live in Scotland the equivalent solution is a Trust Deed
What is Debt Management?
A Debt Management Plan, or DMP, is an informal agreement between you and your unsecured creditors to pay back non-priority debts, reducing your monthly payments to a single affordable amount each month. There are both fee-paying and free-fee debt management plans available.
What is Sequestration?
It is the Scottish term for Bankruptcy, a formal arrangement to deal with debts that you are unable to repay with within a reasonable period of time.
To qualify, you must have debts of over £3000 and have a certificate for this debt plan. Charge for Payment or Summary Warrant. In addition you must not have been made bankrupt in the past 5 years.
What is Protected Trust Deed?
A Protected Trust Deed is a legal arrangement between you and your creditors, which gives you protection from creditors taking action against you to recover debts.
Once a Trust Deed has been established and is protected, creditors cannot add contractual interest or charges to any of your outstanding debt.
What is Debt Relief Order?
A Debt Relief Order is a way to have unmanageable debt written off if you have relatively low income and few assets.
A DRO can be used if you don’t own your own home and your debts are £20,000 or less. However, there are some kinds of debt that aren’t included in this limit, so it’s best practice to check whether you’re eligible before you decide.
What is Debt Arrangement?
A Debt Arrangement Scheme (DAS) is a government-run debt management tool for Scottish residents, that allows you to repay your debts through a debt payment programme (DPP).