What are the
Benefits?
1
Write off unaffordable Debts
2
Freeze all interest and charges
3
One affordable low monthly repayment
4
No upfront costs
5
Protect your assets
6
Stop lenders contacting you
Mon - Fri 8.30am - 8pm
Write off unaffordable Debts
Freeze all interest and charges
One affordable low monthly repayment
No upfront costs
Protect your assets
Stop lenders contacting you
Let's say you owe | |
---|---|
Bank Loans | £4000 |
Payday Loans | £2500 |
Catalogues | £2000 |
Phone Bills | £500 |
Credit Cards | £5000 |
Store Cards | £1500 |
Overdraft | £1750 |
Debt Collectors | £3500 |
Total cost £20, 750 |
Per month
Per month
*An Individual Voluntary Arrangement ('IVA') is subject to the customer meeting qualifying criteria and gaining creditor acceptance. Monthly IVA payments include fees and may differ to the example provided, based on the assessment made of your own personal circumstances - these fees will be clearly explained to you in writing by your IVA company. Debt write off amounts are subject to creditor acceptance and vary by individual customer based on their own financial circumstances, and are applied upon successful IVA completion.
Debts You Can Include in an IVA or TD are |
Credit cards |
Personal loans |
Store cards |
Payday Loans |
Catalogues |
Debt collectors |
Bailiffs |
Old car finance |
Previous years council tax(subject to area) |
Old utility bills |
Old phone bills |
HMRC Debt |
Debts you can't include in an IVA or TD are |
|
---|---|
Child Maintenance | |
Child support deficit | |
Student loans | |
Magistrates’ court fines | |
Bank Loans | |
Secured loans | |
Current car/bike finance | |
Mortgage arrears | |
Guarantor Loans | |
Criteria |
Owe more than £5000 |
Can afford a minimum of £80 per month |
Owe money to two or more creditors |
Are financially struggling to meet |
Repayments or in arrears |
IVA is for residents in England, Wales and Northern Ireland
Trust Deed for residents of Scotland
Free debt counseling, debt adjusting and credit information services are available from the
Money Advice Services.
An Individual Voluntary Arrangement (or ‘IVA’) is a legal agreement between a debtor and their creditors, suitable if you have a minimum of £5,000 of qualifying unsecured debt, owed to two or more creditors, and are struggling to keep up with debt payments. It enables you to prepare an offer (known as a ‘Proposal’) of what you can realistically afford to repay over an agreed period of time, typically five or six years. This offer needs to be agreed/approved by 75% of your creditors (by value) in order to be put in place.
On completion of an IVA, remaining balances on your included debts are written off.
Call us today and we will provide you with confidential, friendly and non-judgemental debt advice that is tailored to you and your own individual circumstances.
Protected Trust Deeds, or ‘PTDs’, are exclusively available to residents of Scotland who are finding it difficult to repay their unsecured debts of over £5,000 (if you live elsewhere in the UK, an IVA is a similar solution). The solution offers a structured repayment plan and way out of unmanageable debt situations, but applicants need to meet specific criteria in order to qualify.
A Protected Trust Deed is a legally binding agreement made with your unsecured creditors to make reduced monthly debt repayments at an affordable rate over a set period (generally 4 years). Outstanding balances on debts included in your PTD are usually written off at the end of the term.
A Protected Trust Deed has two stages – ‘unprotected’ and ‘protected’. During the application stage of the process, you remain ‘unprotected’, which means that your creditors can still pursue you for payment of debts. Once a Trust Deed gains creditor approval, the creditors of the included debts must stop pursuing you for repayments.
If after our financial assessment you feel that a Protected Trust Deed is the most appropriate debt solution for you, we will refer you to an Insolvency Practitioner. Only a licensed Insolvency Practitioner can arrange and supervise a Protected Trust Deed, and he/she will prepare the documents necessary. Your case will then be prepared and presented by the Insolvency Practitioner to your creditors. If your creditors agree to the terms presented, the Trust Deed will be approved and become a Protected Trust Deed.
To qualify for a PTD:
If you would like help and professional debt advice, please contact one of our specialist debt advisors here at National Debt Help. We can review your circumstances to provide advice tailored to you and your needs, helping you to find the most appropriate solution for your individual situation.
Are you struggling to keep up with your monthly unsecured debt repayments? One solution to resolve this issue may be a Debt Management Plan, also known as DMP, to help reduce monthly unsecured debt payments to a manageable and affordable level.
Your living costs may have increased or your financial situation may have changed since taking out your credit commitments, resulting in you having less money available each month to maintain debt payments. No matter what the reason for your difficulties, a Debt Management Plan may be a suitable option to help you to regain financial control. However, DMPs don’t include any secured loans such as your mortgage, and you would have to pay for those separately.
Debt Management Plans (DMPs) help those who are struggling to repay their monthly non-priority debt payments (such as loans, store cards and credit cards). A DMP is an informal arrangement, so payment levels can be changed if your financial situation alters, and you can cancel at any time if you wish to take over the management of your debts yourself.
The initial stages of a DMP involve your DMP company reviewing your income and expenses, working out how much you can actually afford to contribute towards your debts each month and then creating a realistic ongoing payment plan. They will contact your creditors to negotiate with them on your behalf to reduce your monthly payments to a rate that you can afford, though this will usually extend the term of your contracted repayment plan. Creditors will usually agree (and sometimes will also agree to reduce or even freeze interest and charges) to a DMP as this means they are more likely to receive a regular payment from you and to receive repayment for your debts in full. Some DMP companies are fee-charging, while others are fee-free – it is important that you understand which type of DMP company you sign up with.
The Debt Arrangement Scheme (DAS) is a way to manage your unaffordable and unsecured debts. DAS is a formal scheme that’s only available to residents of Scotland and it isn’t applicable anywhere else in the UK.
DAS was introduced by the Scottish Government in 2004 as an alternative to formal insolvency, and was created for those who are finding it difficult to meet current debt repayments, but feel that they could repay their debts in full if they had more time. The DAS involves a Debt Payment Programme (‘DPP’) which extends the term of included debts over a reasonable period (usually a maximum 12 years), reducing and combining the monthly payments of these debts into a single, affordable amount each month.
To qualify for a DAS, you must meet the criteria below:
Do you want to apply for DAS (Debt Arrangement Scheme) as a couple? Then, you must both agree to the DAS proposal, though you do not need to have any joint debts. You will be considered as a couple if:
Our advisors can provide you with advice on Debt Arrangement Schemes (DAS) and other solutions appropriate to your individual financial situation. Please contact us for friendly, discreet and non-judgemental tailored debt advice.
A Debt Relief Order is designed to help those in England, Northern Ireland or Wales (Scottish residents have a similar process called MAP Bankruptcy) with few assets and less than £50 spare income each month to regain control of unmanageable debt. If you don’t own a home, don’t have much spare income, your car is worth £1000 or less and your debt total is under £20,000, a Debt Relief Order (DRO) may be the right option for you.
To qualify for a DRO, you must meet the below criteria:
You are required tocan only apply for a Debt Relief Order through an Insolvency Service Service-accredited intermediary. To see if you are eligible for this solution, contact us for a full review of your financial situation is conductedand to ensure that this is definitely the most suitable solution for you. If this is the case, Then, an application is send sent to the Official Receiver, along with your £90 fee.
Once your Debt Relief Order is granted, you will stop making any payments towards the debts included. Creditors may still continue to apply interest and charges throughout your DRO, but these will not matter (unless your DRO is cancelled) as these will be wiped off at the end of your 12 months.
However, yIou must inform the Official Receiver, if you have a changen improvement to in your financial situation in this 12 monthsperiod, e.g. for example, an increase in income/benefits or a windfall such as an inheritance, receipt of compensation funds or, a pay rise, lottery win, you MUST inform the Official Receiver etc. Then, it will beThey will decided whether you still qualify for a DROthe or if you can now afford to contribute more than £50 per month towards your debts. If this is the case, your DRO should continue or not. A DRO it will be revoked and you will be required to pay your creditors yourself., if you no longer qualify for it.
During your Debt Relief Order, though you will not need to contribute towards your included debts, you must still continue to pay for your essential household bills like mortgage/rent, council tax, utilities and any debts which aren’t included in a DRO.
If you are finding it difficult to keep up with your debt payments, please contact one of our friendly, non-judgemental specialist debt advisorsContact us today, if you’re facing troubles to repay your debts.
Important Note: DRO is only available in England, Wales and Northern Ireland. who can assess your financial situation and help you find the most appropriate debt solution for your needs.
Are you immersed in the sea of debts and finding it really difficult to repay? One of your options for resolving your debt problem is to report for bankruptcy. Apart from you, even your creditor can apply to make you bankrupt, even if you don’t want them to do it. You must owe at least £5,000, if a creditor wants to make you bankrupt.
Bankruptcy can be defined as a formal insolvency process that may have critical and long-lasting effects on a person. It needs to be considered only after serious thoughts and discussions with an expert. Bankruptcy becomes an option in cases where existing debts exceed your existing income and assets. Also, there’s little possibility of repaying it within a specific time.
Your debts will be written off after you file for bankruptcy, but your long term financial plans may get affected negatively. There’s a high possibility that you may lose control of valuable assets, and have to make contributions from your income for up to 3 years.
You can make a fresh start after the bankruptcy order gets completed. In many scenarios, this can happen in a year. Here are some other benefits of applying for bankruptcy:
You’ll need to pay a fee to apply for bankruptcy. Here are a few other drawbacks of going bankrupt:
Normally, after a year your bankruptcy period will end. When it is over, you’ll be notified by the Official Receiver. Most debts that weren’t paid will be written off, however a few debts such as student loans and court fines can never be written off.
Sequestration is a type of bankruptcy that is applicable only in Scotland. Bankruptcy and sequestration are very similar to each other. Sequestration is a way for Scottish residents with unmanageable or out of control debt situations to end the pressure. If you’re living in Scotland and facing significant financial troubles, sequestration may be an option for you.
You (or your creditors) can apply for sequestration if:
Usually Sequestration lasts for just one year (but not in every case), but it can have a major effect on your life.
Sequestration is a court-based insolvency procedure in which the control of your assets is given to a ‘Trustee’ who will be fully authorised to sell any of your assets (such as your home, vehicles or other high value items), with some exceptions. These steps are taken in order to help pay for the cost of managing your case and to repay your creditors as much as possible towards your outstanding debts. Remember, you may still be asked to contribute towards your debts by making a payment from your income, even after the sequestration period is over (generally a one-year timescale). As well as applying for your own sequestration, your creditors can also petition the Sheriff Court or Court of Session for your sequestration.
At National Debt Help, we offer advice on all Scottish debt solutions, making sure that you are fully aware of all the options available to you based on your individual financial circumstances. So, what are you waiting for? Contact us today to start regaining control of your finances.