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IVA’s
An IVA is a legally binding agreement between you and your creditors. At the end of the IVA, usually lasting 5 years, all remaining debts are written off this is often up to 70%.
The debt management company will negotiate to freeze interest and charges. The debt management company will deal with all correspondence with your creditors during the course of the IVA.
Debt Management Plans
A Debt Management Plan is an informal agreement with your creditors to pay back what you owe them.
It designed to help people struggling to pay their debts and payments can be made in more affordable amounts.
Trust Deeds
A Trust Deed is a legally binding agreement between you and your creditors.
It is suitable for people with at least £10,000 unsecured debt who are struggling to meet there monthly repayments. You must be employed and be a resident in Scotland.
Debt Relief Orders
A Debt Relief Order was introduced by the Government in April 2009 as a cheaper alternative to bankruptcy for people on low incomes.
During the 1 year term no action can be taken against you by your creditors, at the end of the 1 year term you will be debt free.
Bankruptcy
Bankruptcy is a legal process that enables you to clear your unmanageable unsecured debts and can be a last resort if you are unable to pay your debts as the fall due.
There are two aims of bankruptcy, firstly to free you from pressure from your creditors and enable you to make a fresh start, secondly to ensure that your assets are distributed fairly among your creditors.
What are the advantages of a Debt Management Plan?
What are the Disadvantages of a Debt Management Plan?
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