Debt Management Assistance
Please complete this form and we will call you back with a plan that best suits your circumstances.
You will be under no obligation to take our advice, this is free of charge.
Individual Voluntary Agreements
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a formal agreement between you and your creditors which could help you become debt free within 5 years.It is a legally binding agreement that allows a formal proposal to be made to creditors to clear your unsecured debts without resorting to bankruptcy.
IVAs were devised by the Government as part of the Insolvency Act in 1986 and provide a realistic way to clear debt without the manifold downfalls of bankruptcy.
Due to the formal nature, an IVA has to be set up by a licensed professional – an Insolvency Practitioner.
Monthly payments are based on an affordable disposable income. Once the final payment is made, any outstanding debt is legally written off. The arrangement can write off up to 65% of your debts (subject to your circumstances).
How does it work?
Debt Management Advice can negotiate a formal IVA on your behalf in a number of easy steps.
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After filling in our simple form, Debt Management Advice will assess your financial situation, and if it’s feasible you will be put forward for an IVA.
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A ‘proposal’ will then be drawn up, based on information you provide us, regarding your current financial situation. A repayment amount, agreed with you, will be decided.
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Creditors will be called upon to either accept or reject the proposal. An IVA will be approved if 75% or above of creditors vote in favour of the agreement. Once accepted, the IVA will be legally binding on all creditors.
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Repayments will then begin and As long as you keep up the repayments, when the term of your agreement is finished, you will be free from these debts regardless of how much has been paid off.
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Your plan will be reviewed regularly to allow for changes that may arise, providing a considerable amount of flexibility.
Advantages of an IVA
• Debt free in potentially 5 years
• Telephone calls and payment demands stopped
• Interest and late payment charges frozen
• Single monthly payment
• Repaired credit rating
• Fixed, legally binding agreement
• Protection from court action
• A private agreement http://www.insolvency.gov.uk/eiir/
Disadvantages of an IVA
• Possible release of home equity
• Minimum level of debt
• No unsecured borrowing during the arrangement
• Stick to a regimented regime for 5 years
• Damaged credit rating
• Longer than bankruptcy
• You must include all creditors
Trust Deeds (Scotland Only)
What is a trust deed?
A trust deed, the Scottish equivalent to an IVA, is a legally binding agreement with your creditors and a licensed Insolvency Practitioner (the Trustee), used in Scotland, to enable Scottish residents with a means of repaying their debts based on what they can afford. Any remaining debts are written off.
How does it work?
Similar to an IVA, the Trustee will assess your financial situation and put together a proposal to present to your creditors for approval and administer the Trust Deed.
A trust deed is an informal form of sequestration (bankruptcy), though it is still regulated by The Bankruptcy (Scotland) Act 1985.
Advantages of a Trust Deed
• Write off large % of your debt
• Dramatically cut your monthly outgoings with one affordable payment
• Creditors will be unable to add interest and charges to your debt
• You won't receive letters or phone calls from your creditors
• A Trust Deed is more flexible than bankruptcy and costs less to administer.
• In most cases you will be able to remain self-employed
• Trust Deeds are tailored to suit you. Only pay what you can afford
• You could be totally debt free in 3 years
• The information is not published (unlike sequestration)
Disadvantages of a Trust Deed
• You are required to stick to a budget for the length of the Trust Deed (usually 3 years)
• You must declare all assets and liabilities and any assets of value may need to be sold for the benefit of the creditors.
• Any material equity in your property will need to be realised for the benefit of your creditors
• Any windfalls, inheritance or bonuses must be declared to your trustee and may need to be surrendered to the trustee for the benefit of the creditors
• You may find it more difficult to obtain credit in the future