An IVA (Individual Voluntary Arrangement) is a popular debt solution for people who cannot afford their unsecured debts but want to pay as much as they can realistically afford to them. Its growth as a solution for unmanageable debts has been significant over the last 10 Years.
Put simply it is a legally binding proposal of payment to your debts based on what you can realistically afford to pay over usually just 60 months. It allows you to put forward a fair and equal offer of repayment to your debts were there is no ability for you to repay them in full. It freezes interest and charges to ensure your debt cannot increase and protects you and your essential assets such as your home or car against any further collection activity by your debts.
If you are a Scottish Citizen and have debts over £5,000 you may be eligible for a Trust Deed. A Trust Deed is a formal agreement between you and your creditors that allows you to pay back what you can afford – at a rate that suits you. Whilst you are under a Trust Deed your Insolvency Practitioner or ‘Trustee’, will communicate directly with your creditors on your behalf so you don’t have to worry about dealing with them.
A Trust Deed will freeze any interest rates and charges and will stop your creditors from taking any further action against you so long as you maintain regular payments. It typically takes around 4 years to complete and when you pay off your agreed amount, any remaining debt will be written off!
A Debt Management Plan is an informal agreement designed to allow someone who is struggling to meet their monthly debt repayments. It can only be used on unsecured debts but is designed to move all your payments into one new affordable monthly payment
Debt Management offers you a layer of protection between you and your creditors. By taking away the potential strain of dealing with your debts direct as this will be handled by DFH’s customer service teams. They will also handle all your creditor post and any negotiations regarding your offers of payment.
Bankruptcy - For people with extreme levels of debt and repayment problems, it could be the only option. However, Bankruptcy is publicly advertised, which can be distressing. We would only recommend this solution for you after we have explored all other options
Debt Relief Order - It is designed to help debtors who have less than £20,000 of debt, a monthly disposable income of £50 or less, assets worth less than £1,000 and a vehicle worth less than a £1,000.
Debt Arrangement Scheme - The Debt Arrangement Scheme was introduced to provide Scottish residents with a solution to paying back debts without going insolvent. The DAS allows you to repay your debts at a slower, more affordable rate
Administration Order - A County Court Administration Order is available to individuals who owe no more than £5,000 to at least 2 creditors. They must also have a County Court judgement against them by one of their creditors which they can’t repay in full.
NationalDebtService.co.uk is an independent website created to help users find a solution to their debt problems. Our service is free to use and you are under no obligation to accept any of the recommendations you receive. An IVA (Individual Voluntary Arrangement) is subject to acceptance.
Debt write off applies to unsecured debts and on completion of an IVA. A debt write off amount of between 20% and 80% is realistic, however the debt write off amount for each customer differs depending upon their individual financial circumstances and is subject to the approval of their creditors.
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At National Debt Service, we do not give advice. On completion of our form, we will introduce you to one of our authorised IPA regulated companies. We use the contact details you have given us on the form to make this introduction. A debt advisor will contact you by telephone. During that telephone call, the debt advisor will discuss your options in more detail. During this call, and other subsequent communications, you will be dealing with a debt solutions partner and not National Debt Service. We may receive commission from the company we introduce you to.
Free money help and advice can be found at the MoneyAdviceService.org.uk