Debt Guide

What Is Debt Management? What Is An IVA? Find out more here!

• Bankruptcy
• Debt Management
• Individual Voluntary Arrangements (IVA)
• Scottish Protected Trust Deeds

Bankruptcy

There are alternatives to going bankrupt as you can see from the Debt Management, IVA and Trust Deed information below. If you are still having problems please read the information about bankruptcy below.

What are the implications of bankruptcy?

1. You lose control of your assets.
2. You cannot obtain credit for over £250 without the permission from the lender.
3. You cannot act as a company director.
4. You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
5. You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.
6. You may not practice as a Charted Accountant / Lawyer.
7. You may not act as a Justice of the peace (JP).
8. You may not become an member of parliament.
9. You may not become a member of the local authority.
10. Your credit is affected for many years after the annulment.
11. You may be publicly examined in court.

What are the advantages of bankruptcy?

1. For the person involved, bankruptcy provides relative peace of mind and possible automatic discharge after one year (or less in some cases).
2. For the creditors, bankruptcy allows a full investigation of the debtor's affairs to be carried out.

 

Debt Management

Debt Management is just that. We manage your debts on your behalf. By finding out how much you can realistically afford to pay creditors, we negotiate on your behalf to have payments reduced to a more affordable level.

This may be the solution if you:

1. Are struggling with your debts
2. Have unsecured debts over £2,500 (including personal loans, excluding debts to your family/friends)
3. Have two or more separate creditors
4. Have credit card, store card or catalogue debt
5. Have a bank overdraft
6. Have default notices or CCJ's

What does debt management mean for me?

1. You won't have to borrow more money – we work with the income and debts you have to provide an affordable debt management solution that is unique to you.
2. You'll be able to maintain a reasonable standard of living and repay your debts.
3. We deal with your creditors directly on your behalf.
4. You make one affordable monthly payment to Immediate Financial and we do the rest.
5. We aim to have your interest and charges frozen.

 

Individual Voluntary Arrangements (IVA)

An IVA is a scheme which allows a debtor to petition their creditors for a formal arrangement to help them pay off their debts.

The main advantages of an IVA are:

1. At the end of the agreed IVA term you will be free of unsecured debt, whether or not you have paid your creditors in full (the effect on your credit rating will last for 6 years).
2. You only pay what you can afford over a fixed period of time, usually an IVA term is five years.
3. Interest on your debts will cease to accrue as creditors are required to prove their claims for an amount.

People often think an IVA is like going bankrupt - it isn't the same. However if the IVA fails this could lead to bankruptcy.

What does an IVA mean for me?

1. An IVA is not advertised in the regular press and your employers will not be told.
2. Details are published on the Insolvency Service register.
3. The IVA is binding. In other words, once it is set up, creditors cannot change their minds.
4. Creditors must deal directly with your insolvency practitioner rather than with you, so any threatening letters or telephone calls you may have been receiving will stop.
5. Your home may also be protected in an IVA.
6. In certain instances you may however be required to re-mortgage your property after 4 years in order to release any equity to pay off some or all of your debt.

 

Scottish Protected Trust Deeds

Instantly reduce your monthly outgoings and start living again!.

The main advantages of a Scottish Trust Deed is:

1. In almost all cases, Stay in your home and keep your car.
2. Be debt free in typically 36 months (Just 3 years!).
3. Incorporate all of your unsecured debt into the Trust Deed.

What does an IVA mean for me?

1. Only pay back what you can afford.
2. Creditors cannot take legal action once Trust Deed is protected.
3. A Trust Deed is a PRIVATE arrangement between you and your creditors No-one else will be involved.