Debt Solutions

When you are in the middle of debt, it can feel like the end of the tunnel is still way out of sight. We are here to tell you that all is not lost. From individual voluntary arrangement to debt relief orders, there is a debt solution out there regardless of your financial circumstances. 

Not sure where to begin? Here is a mini introduction to the different forms of debt solutions and why they might suit you and your situation.

If you feel an IVA could help you, click below to talk to one of our team.

An IVA may not be suitable in all circumstances.
Fees apply. Your credit rating may be affected.

Solutions to Get Out of Debt

Individual Voluntary Arrangement

What is it?

An individual voluntary arrangement (or IVA) is a legally binding agreement between you and your creditors to ensure you repay your debt within a certain period of time. You will need 75% or more of your creditors at the decision procedure to approve the proposals for the arrangement to be made.

Once the agreement has been made, it is legally binding on all parties, which means both you and your creditors will have to abide by its terms.  It is available to people in England, Wales and Northern Ireland.  

The IVA will only bind unsecured creditors that would be included in your bankruptcy, such as credit cards, loans, mortgage shortfalls, and similarly, will not include creditors that would be excluded in bankruptcy, such as student loans, court fines and social fund loans. 

A debt solution company like NDH Financial employs insolvency practitioners who will speak to the creditors on your behalf to secure your monthly payment plan.

Your IVA will usually last for 5 to 6 years. The payments are made directly to the insolvency practitioner.  The insolvency practitioner is authorised by creditors to draw a fee from the money paid in, and the remaining funds are paid to creditors. 

At the end of the IVA, provided you have complied with the terms, any remaining, qualifying debt will be written off. 

Who might an IVA be suitable for?

If you have debts that add up to more than £10,000 or have to deal with numerous smaller creditors - a prospect that can feel, well, daunting - an IVA may be the option for you. 

We may be able to help

IVAs are our bread and butter, it is what we specialise in. Our Insolvency Practitioner has over 15 years experience in personal insolvency, providing IVA’s to people who are struggling with their debts.  

To find out more, book a free consultation today and visit our learning hub to find out more.

Debt Management Plan

What is a Debt Management Plan?

A debt management plan is an informal agreement between you and your creditors. The basis of the agreement is to confirm a set monthly payment you can pay to your debt management provider who will distribute it to your creditors. 

The benefit of using a debt management provider to do this means you do not have to worry about dealing with the creditors directly. The provider will do this for you.  A debt management provider will usually charge you fee for administering the plan, although there are some charitable and non-profit organisations who will provide one without charge.

The debt management plan is not a legally binding document, which means if you miss a few payments, the creditors will be able to cancel the agreement at any time. The duration of a debt management plan depends on the size of your debt. The larger the debt, the longer the plan will be in place. 

Who might a Debt Management Plan be suitable for?

If you are someone who struggles with their credit card debts, personal loans and store card payments, a debt management plan might be the best debt solution for you. It is available to people who live in England, Wales, and Northern Ireland.

If you are in the position to afford monthly payments and find it daunting dealing with multiple creditors, this may be the most suitable debt solution for you.

Debt Relief Order

What is a Debt Relief Order?

Having a debt relief order means you do not have to pay anything towards your qualifying, unsecured debts for a year, and at the end of the year, all of the qualifying, unsecured debt is written off. While the debt relief order is in place, no creditors will be able to contact you and request payment for said debt.

The application costs £90 and requires the help of a debt relief order advisor who will guide you through the process free of charge. The fee can be paid in instalments, however, your application will not be processed until the fee is paid in full.

What debts can be included in a Debt Relief Order?

Can be included

The debts you can request a debt relief order for are non-priority debts, including:

  • Credit card debt
  • Overdraft debt
  • Benefit overpayments
  • Buy now, pay later schemes
  • Debts you owe friends and family

Can't be included

You cannot request a debt relief order for priority debts such as:

  • Magistrates’ court fines
  • Child support
  • Student loans

Who might a Debt Relief Order be suitable for?

If the below resembles your financial situation, chances are a debt relief order is worth considering. It is available to people who live in England, Wales, and Northern Ireland.

  • You do not have the ability to pay off your debts. 
  • Your total debt is less than £30,000.
  • After you have paid your household expenses, you have less than £75 in the bank. 
  • You do not own your own property. 
  • You have assets worth less than £2,000.
  • You have not had a debt relief order within the last six years. 
  • You have not filed for bankruptcy.
  • You are not in an active individual voluntary arrangement (IVA).
  • You have lived and worked in England or Wales over the past three years.

Can NDH help?

While we do not offer debt relief orders as a financial solution, we are more than happy to review your circumstances if you wanted to propose an Individual Voluntary Arrangement to your creditors instead.


What is Bankruptcy?

Bankruptcy is the legal process that allows you to write off any existing unsecured debts. It allows you a clean slate so that you can start your financial journey from scratch. It is available to people who live in England, Wales, and Northern Ireland.

It is a legal procedure to help you get out of a financial position that is not changing, where you are unable to make your payments. Your existing assets, such as your home, will be sold in order to pay off your debts.

The fee is £680, however, it can be paid in instalments, although the application will not be processed until the fee is paid in full.

You can apply for bankruptcy online. Once you have completed the application and paid the fee, the bankruptcy order will be made.

If you own significant assets, you will want to carefully consider whether bankruptcy is an appropriate solution. When the bankruptcy order is made, the fees charged by the Official Receiver and Trustee will be significantly higher than other solutions.

What debts can be included in a Bankruptcy Order?

Can be included

Bankruptcy will deal with all unsecured creditors that are not specifically excluded in legislation. For example, it will include:

  • Credit card debt
  • Overdraft debt
  • Benefit overpayments
  • Buy now, pay later schemes
  • Debts you owe friends and family

Can't be included

The bankruptcy will not include certain debts, as these have been specifically excluded by the legislation. These debts include:

  • Magistrate court fines
  • TV Licence arrears
  • Student loans
  • Debts arising from fraud
  • Social Fund loans

Get in touch today

NDH Financial can help free you from the shackles of your debt.

Call us on 0800 002 9051 or apply below.

If you're an existing client, please call us on 0800 002 9061.


Protected Trust Deed

What is a Protected Trust Deed?

A protected trust deed is similar to an IVA and is only available in Scotland. A protected trust deed (“PTD”) is a legal agreement between you and your creditors so you can make a reduced payment towards your debts. 

The deed will last three to four years and the remaining debts will be written off once the required payments have been made into the PTD. The PTD will be supervised by a trustee who will be a qualified insolvency practitioner, who is regulated by law.

When taking part in a PTD, you transfer the rights of the assets you own to a trustee. The trustee has the right to sell these items as a contribution toward the debt repayments. You may be able to exclude specific assets from the PTD by offering creditors suitable compensation for the asset. You will then also make a monthly contribution to your creditors, usually for 36 to 48 months, although this can vary, and the contribution will be based on your disposable income.

In order for a protected trust deed to be approved, half of your creditors need to accept the proposal. Once the deed becomes protected, the creditors are no longer able to take legal action against you to collect your debt. 

Payments to the creditors will go through your trustee who will distribute the payments to your creditors on your behalf.

Debt Arrangement Scheme

What is a Debt Arrangement Scheme?

A debt arrangement scheme (or DAS) is a scheme overseen by the Scottish government. It allows you to repay your debts by making a monthly payment you can afford over time. 

An affordable payment will be paid into the scheme and will be shared between the creditors to whom the debt is owed.

The amount is completely up to you, as long as the full repayment is made within a reasonable period of time. 

If the debt cannot be repaid within an acceptable time period, then this is not the debt solution for you.

Who might a Debt Arrangement Scheme be suitable for?

It is a suitable option for you if you:

  • Live in Scotland 
  • Hold debts with more than one creditor or individual 
  • Have some disposable income remaining after paying your essential bills


What is Sequestration?

Sequestration (also known as a form of bankruptcy) is the legal process that writes off your debts if you live in Scotland. Sequestration is different to the way bankruptcy works in England, Wales and Northern Ireland and has different features associated with it.

To apply for sequestration, you need to have a certificate of sequestration that confirms a declaration of bankruptcy is the best option for you. A debt advisor will be able to assist you with this.

Alternatively, you can apply for sequestration without a certificate, if a creditor has demanded payment in full from you, and you are unable to pay it, as you will be deemed “apparently insolvent”. For example, you have been sent a notice that states “statutory demand” and you do not pay it within 21 days.

Once you have fulfilled the criteria, you can make the application, and once processed, your debts will be written off and you will no longer have creditors chasing you for payment. The fee for the application is £150, although this may be reduced to £0 if you are in receipt of certain benefits.

Who might Sequestration be suitable for?

You can apply for sequestration if you tick the following boxes:

  • Your total debt exceeds £3,000
  • You are a resident of Scotland or have lived in the country for over a year
  • You have not been made bankrupt within the last five years

Debt Consolidation Loans

What is a Debt Consolidation Loan?

Debt consolidation loans are a good debt solution for those whose debt is spread across multiple creditors, as it combines all of your payments into one monthly payment. In consolidating your debts, you are essentially borrowing money to make these repayments and, as a result, now owe money to just one lender. 

There are two ways in which you can consolidate your debt:

Secured debts

This is where you secure assets, such as your home, against the amount of money you have borrowed. If you have a poor credit history or the amount of debt you are in is high, there is a chance that this is the option that will be offered to you.

Unsecured debts

This is where the loans are not secured against your home or other assets. This means the lender is not able to use your assets to recover their payments. 

Before you take out any further credit, you should carefully consider your affordability. If taking out a secured loan, if you fall into arrears, the creditor will have a right to enforce the security against the equity.


Apply Today

Get in touch with NDH Financial for a free consultation about your debts to see if an IVA could help you.

Call us on 0800 002 9051 or apply below.

An IVA may not be suitable in all circumstances.  Fees apply. Your credit rating may be affected

Equity Release

What is Equity Release?

An equity release allows you to access the equity (money) tied up in your home if you are of retirement age. The equity you will receive will depend on how much your home is worth and the remaining amount you owe on your mortgage. 

You can choose to have the money released all at once or access the money in instalments. The money can be used for home improvements, supplementing income or paying for any long-term care. It can also be used to help you repay any debts you owe. 

There are four equity release plans to choose from:

Home reversion plans

This allows you to sell your home or a part of your home in exchange for a large sum of money. This option will allow you to live in your home rent-free. 

Retirement mortgage

A retirement mortgage is secured against your home and is only repaid after the property has been sold.

Interest-only lifetime mortgage

This means you can borrow money against your home while still living in it. Once your home is sold, the mortgage will be repaid.

Lifetime mortgage

With a lifetime mortgage, you can borrow money against your home without worrying about making repayments. The interest built up goes towards your mortgage. 

You can use an equity release calculator to confirm the amount you would receive to see if it is a viable option for you.


What is a Remortgage?

Remortgaging your property means switching mortgage providers and moving from one mortgage to another.

There are two reasons why this would be a viable debt solution option:

  • You can release the equity you receive in a lump sum to repay your debts.
  • You can reduce your monthly mortgage payments, redirecting the extra money towards repaying your debts. 

If you fail to keep up with your mortgage payments, the lender will be able to take recovery action against your property.

Secured Loans

What is a Secured Loan?

A secured loan is made by putting the loan against assets such as a home or a car.

This means if you fail to make a payment, the lender has the power to take control of the assets. Once the debt has been paid back in full, the ownership of the assets will revert back to you. 

There are three types of secured loans you can choose from: 

Mortgage loan (where you put your property up for collateral)

Vehicle loans (where your mode of transportation is put up for collateral)

Secured credit cards (where you make a cash deposit for your collateral)

Start your debt solution journey today 

There are lots of factors to consider when it comes to choosing the right debt solution for you. There is no one-size-fits-all solution, which is why it can be quite overwhelming when deciding which way to go. 

At NDH Financial, our IVA assessors are able to offer you a no obligation consultation where you can discuss your situation so you can begin your journey to become debt-free**. 

Take the first step, apply now.

An IVA may not be suitable in all circumstances.  Fees apply. Your credit rating may be affected.

Do You Have More Questions?

Our IVA Learning Hub Can Help

We know you might have questions and that’s fine.

We can answer most of those on our call.

But we’ve also built our learning hub so that you can learn more about an IVA and see if one is right for you.

Click below to check it out.