What are the alternatives to bankruptcy?
If you’re considering bankruptcy but not sure if it’s the best way to manage your debts, don’t worry. Choosing a debt solution can feel overwhelming, especially when there are several options available to you.
It’s always good to take time to understand how each solution could affect you so that you’re confident that you’re making the right choice.
Other Solutions You Might Want to Consider
Individual Voluntary Arrangement (IVA)
This insolvency solution is a legally binding agreement between you and your creditors. You’ll make affordable monthly payments for an agreed amount of time, usually five to six years.
After this, any outstanding unsecured debts included in your plan will be written off. Any assets you own will be protected, and interest and charges will be frozen.
The creditors included in your IVA won’t be able to chase you for payments or take any legal action against you.
Debt Management Plan (DMP)
This solution is an informal arrangement. In a DMP, you’ll pay back everything you owe until you’ve repaid all of your debts.
You’ll make an affordable monthly payment once you’ve covered all your essential expenses. Normally, your creditors will agree to freeze your interest and charges.
They may also reduce the amount of contact you receive from them, but as it’s an informal plan, they don’t have to.
Debt Relief Order (DRO)
There are strict eligibility criteria for this insolvency solution. An approved intermediary will submit your application on your behalf.
If it’s approved, your DRO will begin, and you won’t need to make any payments into it. After a year, any outstanding unsecured debts will be written off.
Contact Us to Learn More
Learn more about the different options available to you and how each could affect you. Talk or type, we’re here to help.
Call us on 0800 316 1833 or complete our simple online form.