What are the alternatives to bankruptcy?
If you are unable to repay your debts and believe that bankruptcy may be the only option for you, you may be pleasantly surprised to learn that you could still be eligible for a number of other debt solutions that could help you to avoid the serious consequences of bankruptcy.
Alternative debt solutions include:
Individual Voluntary Arrangement (IVA ): This is a legally binding arrangement between you and your creditors that allows you to make affordable debt repayments across a set period, normally five to six years, after which time any outstanding debts are written off. An IVA allows you to keep your assets such as your house and vehicles.
Debt Management Plan (DMP): This is an informal arrangement allowing you to make reduced payments to your creditors based on your level of disposable income after your priority payments and living costs are taken into consideration. The DMP lasts until you have paid all of your debts in full. It’s worth bearing in mind that because this is a voluntary agreement on both sides, your creditors could still take legal action against you to try and recover outstanding debts.
Debt Relief Order (DRO): If you have assets of less than £1,000, and a surplus of less than £50 per month, and debts less that £20,000, this is a similar alternative to bankruptcy. A DRO lasts for a year, after which time any outstanding debt is written off.
Our expert, impartial advisors are specifically trained to assess which debt solution is most appropriate to your specific needs. Talk to us today on 0808 274 2303 or complete our simple online form and we will call you back.