What are the alternatives to bankruptcy?

If you’re 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 several other debt solutions that could help you avoid the severe consequences of bankruptcy.

Alternative debt solutions include:

Individual Voluntary Arrangement (IVA ): This legally binding arrangement between you and your creditors allows you to make affordable debt repayments across a set period, usually five to six years, after which any outstanding debts are written off. An IVA will enable you to keep assets like your house and vehicles.

Debt Management Plan (DMP): This informal arrangement allows you to make reduced payments to your creditors based on your level of disposable income after your priority payments and living costs are considered. The DMP lasts until you have paid all of your debts in full. As this is a voluntary agreement on both sides, your creditors could still take legal action against you to try to recover outstanding debts.

Debt Relief Order (DRO): If you have assets of less than £2,000, a surplus of less than £75 per month, and debts less than £30,000, 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.

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