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Debt Centres - Nationwide Support



UK Legislation could reduce your debts by up to 70%*
Use UK legislation to write off up to 70%* of your debts with an IVA...

Individual Voluntary Arrangements (IVA’s) were introduced by the Government in the 1986 Insolvency Act as an alternative to bankruptcy. They were put in place to help anyone in serious debt finding it difficult to make their monthly payments. If you live in Scotland the equivalent solution is a Trust Deed

An IVA is a formal agreement with your creditors (the people you owe money to) where you agree to pay only what you can realistically afford, taking into account your living expenses and monthly income. This is paid as a single monthly payment, usually over a period of sixty months. At the end of the period any remaining debt is written off and you owe nothing.

On average, clients have had 25% and 85% * of their debt written off with an IVA!

Provided you maintain your repayments as agreed, an IVA protects you from further legal action from your creditors. In addition to this, all interest and charges are frozen at the time the IVA is agreed.

  • Available to everyone – Individuals, couples and businesses.
  • Remaining debt legally written off.
  • Interest and charges frozen.
  • Keep your house and other assets, such as your car!

It is very important that you understand your legal rights and responsibilities if you are in debt. Expert debt information can make an enormous difference to the outcome of any debt problems you are currently facing.

Speak to one of our expert advisers today to discuss whether an IVA is the best option for your circumstances.

Are there any disadvantages to an IVA?

Although the advantages of an IVA are significant, undertaking an IVA is a serious matter. As such, there are some things that you must bear in mind when thinking about an IVA:

  • Credit Rating Effected
  • The IVA will be recorded on your credit file. This means that you will not be able to take further unsecured borrowing for the period of the IVA. Once the IVA is completed (normally after 5 years), you can borrow again. However, it may take some time for your credit rating to repair.

  • Home Equity Must be Released
  • If you are a home owner, during the course of the IVA you may have to release available equity from your property to increase the overall settlement offer to your creditors. If you do have to remortgage to release equity you may then find the rates available to you become higher. If you are unable to contribute the equity from your home your IVA could be extended by a further 12 months.

  • Name included in Insolvency Register
  • Whilst your name is not published in the newspaper, it should be pointed out that the IVA will be entered onto the government insolvency register, which is a searchable public database.

  • Failure may result in bankruptcy
  • If you fail to adhere to the terms of the IVA, bankruptcy proceedings may be taken against you. As such, your home and other assets may be at risk.

  • Only Unsecured Debts can be written off
  • Debt write off applies to unsecured debts and those not included will remain outstanding.*

  • Expenditure Restrictions
  • There are also restrictions on what expenditure is usually permitted when you are on an IVA. For example creditors will not usually allow extravagant or luxury purchases. However these are considered on a case by case basis.

  • Creditor Acceptance
  • An IVA propsal is presented to your creditors, this must be accepted by 75% of the creditors (by debt value).

 

About Debt Centres

We're here to help, we will introduce you to one of our authorised debt solutions partners. A quick, informal chat to a fully trained UK based debt specialist will enable them to find the right help and information for you and help you to become debt free.

  • Nationwide coverage from UK based debt specialists.
  • Reduce your debt by up to 70% with UK Legislation*
  • There is help available you even if you have low income, previous bad credit or CCJs
 
IVA Example
Here's an example of how an IVA can make your debt affordable
How your finances may look...
Unsecured Loan:
£12,000
Credit Card:
£10,000
Store Card:
£4,000
Total Owed:
£26,000
Current monthly
payment:
£680
With an IVA...
60 monthly
payments:
£206
Total debt
paid back:
£12,360
Total debt
written off:
£13,640
Debt written
off:
62%
 
Debt Management Example
Here's an example of how a Debt Management Plan can make your debt affordable
How your finances may look...
Unsecured Loan:
£6,000
Credit Card:
£3,000
Store Card:
£2,000
Total Owed:
£11,000
Approx. Monthly
payment:
£385
With a Debt Management Plan...
Approx. Monthly
Payments:
£150
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Debt Solutions
There are many debt help options available if you are struggling with debt. To learn more about each option click on the buttons below.
  • Debt Management

    A debt management plan is designed to help people who are struggling with their debts. If you owe at least £1,000 of unsecured debt and can afford to pay at least £80 per month or £20 a week then this could be an option for you.



  • IVA

    If you owe more than £5,000 and can afford at least £80 per month or £20 per week an IVA might be an option for you. An (IVA) is a Government Scheme to help those with unaffordable debts. An IVA lets you repay all your debts in a single monthly payment at a rate you can really afford.

  • Bankruptcy

    Bankruptcy is when you admit legally that you can't pay off what you owe to your creditors. You can do this as either a private individual or a business. You can also have bankruptcy imposed upon you, usually by creditors who are trying to recover money that you owe them.


  • Trust Deed

    A Trust Deed is help for those with unmanageable debt, exclusively for Scottish residents. It enables you to repay as much of your unsecured debt as you can within an agreed timeframe (usually 4 years). On completion, any remaining unsecured debt will be legally written off.

Fees & Key information

These debt solutions are designed to help you find the most affordable way out of debt. Fees maybe payable dependent on the solution recommend to you. By law Debt Solutions Companies must be clear about any fees payable. Click here for more details on Fees and Key Information

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