Debt Solutions | Restructuring | Services

Debt Solutions |  Restructuring |  Services

The debt solutions are as follows:

  • Individual Voluntary Arrangement (IFA)
  • Debt management plan
  • Debt Relief Order (DRO)
  • Bankruptcy
  • Informal arrangement

1. Individual Voluntary Arrangement

  • Legally binding agreement between you and your creditors
  • Prevents further legal action against you by creditors
  • Avoid the stigma and restrictions of bankruptcy
  • Offer to pay an affordable monthly amount (within guidelines) for up to five years
  • Interest and fees on unsecured debt are frozen
  • You may be able to keep your house
  • You may be able to continue your activity
  • Your IVA will be approved by creditors if more than 75% vote for acceptance
  • Once the duration of your arrangement has been successfully completed, the balance of your debts will be written off

2. Debt management plan

  • Informal agreement negotiated with creditors
  • Monthly management fees
  • A reduced monthly payment
  • Longer repayment term
  • Interest and fees may or may not be frozen
  • Not legally binding
  • Suitable for lower debt levels (
  • Must have disposable income

3. Debt relief order

Similar to bankruptcy but suitable if you:

  • You owe less than £15,000 in total to your creditors
  • Own assets worth less than £300 (excluding a motor vehicle worth £1,000)
  • Have less than £50 per month of disposable income
  • The DRO will last 12 months
  • The cost to apply is £90
  • You must not have had a previous DRO within six years

4. Bankruptcy

  • Court process where a bankruptcy order is made
  • Appointed trustee to control your assets and look after your estate
  • Interest and fees are frozen on unsecured debt – direct payments cease
  • Ownership of your assets passes to the trustee (including your home)
  • Assets will be sold to raise funds to pay your creditors
  • If you have disposable income per month, you may need to make payments for up to three years
  • Bankruptcy can have an impact on your profession if you are, for example, a business manager, an accountant, a lawyer, etc.
  • Your bankruptcy may be advertised in the local newspaper
  • Bankruptcy usually lasts 12 months
  • The cost of a petition for your own bankruptcy is around £500

Robert P. Matthews