It’s most appropriate for those who have debts of more than £6,500 and cannot afford to meet repayments, who see missed payment charges incurred, interest increasing and their debt spiraling.
However, a debt specialist will be able to shed more light on this and discuss whether it is the right option for you. We can tell you, without obligation, how best to get on a stable financial footing.
You agree to repay as much as you can towards your unsecured debts – normally for four years – and at the end of that time, any remaining unsecured debt is written off. During your trust deed, you’ll also be protected against further action from lenders included in the agreement – so they won’t be able to make you bankrupt or demand higher payments.
It stops any legal action again you, stops creditor and bailiff contact and hassle.
To qualify for this help you cannot:
- Have any assets worth more than £1,000
- Have any Debts of £20,000 or over
- Have a disposable income more than £50
- Live in Scotland
- Have had a DRO within 6 years.
If your debts are particularly high and / or your income is low, you may need to think about declaring yourself bankrupt.
Like an IVA (Individual Voluntary Arrangement), bankruptcy is a form of insolvency: it’s a legal process that will share out your assets fairly among your creditors, protect you from further legal action and upon successful completion (normally after 1 year), write off your outstanding debt allowing you to make a new start.
Debt management plans are usually used when either:
- You can only afford to pay creditors a small amount each month
- You have debt problems but will be able to make repayments in a few months
- You do not qualify for debt relief due to assets you may have
This includes all non-priority debts ie Credit Cards, Loans, Pay day loans etc
A DMP will be based on you disposable income, the payment will continue until your debts have been paid off in full
- Like a Trust Deed, bankruptcy is a form of insolvency: it’s a legal process that will share out your assets fairly among your creditors, protect you from further legal action,. The full term will normally last 4 years, however you are generally discharged after 1 year.
If you have decided you want to make yourself bankrupt and you do not meet the conditions set out in the Minimal Asset Process then you must meet the following conditions under full administration:You must owe a total debt of £3,000 or more
- You must be living in Scotland or have lived in Scotland sometime during the last year
- You must not have been made bankrupt in Scotland in the last five years
- You must pay the application fee of £150
- You have received money advice from an approved money advisor
10+ Years Industry Experience
Dedicated & Specialised Staff
Item added to cart