Debt Solutions

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.

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. 

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.

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.

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.

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.

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: