Debt Advice Options

Overview

Please find below the range of debt options to consider to manage your problem debt. You might find that some of these debt options have eligibility criteria that mean you need to dismiss them, but please do not panic, there is usually a debt option(s) to suit most people's individual circumstances.

Some debt options have an application fee to pay, your debt adviser will let you know if this is the case, how much you have to pay and when. In some circumstances, you might be able to apply for charitable help to pay for any fees.

Read more to check the pros and cons of each debt option according to your individual circumstances.

Administration Order

An application made through the County Court for people with debts under ยฃ5000, an unpaid CCJ & 2 or more debts. An Admin Order provides a formal, legally binding agreement between you & your creditors, usually with partial write off.

Bankruptcy

This is an online insolvency solution that writes your debts off if you can't afford to repay them. It's a legal process suitable if you're unable to repay your debts in a reasonable amount of time, & you don't have assets of value to protect.

Debt Management Plan

An informal arrangement to repay an affordable, pro-rata amount to your credit debts until they are repaid. There are organisations that provide free debt management plans to make monthly payment distributions for you.

Debt Re-organisation

More lending used to repay all or a proportion of your debts. The interest rate charged can be high on these loans & may stretch your debt over a longer period. This type of loan is often secured. For over 55's, equity release or a lifetime mortgage may be an option.

Debt Relief Order

An online insolvency solution that writes off debt & suits individuals that do not own a property. To apply, you must satisfy eligibility criteria, including total debts under ยฃ20,000 & less than ยฃ50 pcm disposable income.

Debt Write Off

If you can evidence that you are suffering exceptional financial circumstances with poor long-term prospects, you can appeal to your creditors for full or partial write-off of your debts. A long hold. or moratorium may be possible too. If you have council tax arrears in this position, you might be able to apply under Section 13a Council Tax Relief for a reduction or write-off.

Full and Final Settlement Offers

A full and final settlement agreement is a way of giving an agreed lump sum payment to a creditor against the full balance of a debt. The remaining balance will then be written off.

Individual Voluntary Arrangement

An affordable insolvency proposal to your creditors. The proposal is voted on by your unsecured creditors & if accepted by a majority, all are bound in. You must either have a one -off lump sum to offer or a repayment plan lasting 5 or 6 years (this can vary if you need a non-protocol IVA due to complex income).

Informal Offers

These are regular repayments offered to your creditors based on your income & expenditure & available disposable income You can administer these payments yourself & may be able to negotiate a freeze on interest & charges.