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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.
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 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.
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