Other Debt Solutions
If neither Debt Management or Debt Consolidation is right for you, there are a few other ways to tackle your debt problems;
IVA
An IVA (Individual Voluntary Arrangement) is similar to debt management. The differences are that they last 5 years, and are legally binding. There are several other differences which may involve homeowners releasing equity in their property in order to make a contribution to the debt. Your account would be administered by a qualified, licensed insolvency practitioner.
Trust Deed
A Trust Deed is similar to an IVA and applies to residents of Scotland. Debts usually need to be more than £10,000 to qualify. Repayments are made for 3 years, after which time any remaining debts are written off. All interest is frozen.
Bankruptcy
Bankruptcy laws changed from 1st April 2004. The bankruptcy can now be discharged after just one year, but the chances of obtaining credit can be affected for many years afterwards.
You can either be made bankrupt by a creditor (if you owe them at least £750) or it can be a voluntary process. There are many implications of bankruptcy - if this is the best option for you, our advisors will discuss these with you at length.
Debt Sorter can talk you through all these kinds of arrangements and help you decide the best way forward to ease your debt problems.
© 2008 Debt Sorter
