If your creditors don’t accept the settlement offer, you can still use your lump sum to reduce your debts and explore other debt solutions.
It depends on the type of settlement you do. A full settlement will appear as “fully satisfied” on your credit file. Partial (or short) settlements will be marked as “partially satisfied” and remain on your credit file for six years. Your creditors will update your credit file after the settlement is completed.
No – our debt settlement service is completely free. Some third-party providers charge a fee, so be sure to check before deciding how you want to proceed.
Yes, our team will work with you to create a budget based on your current circumstances.
You can use this to help you complete your DRO application.
Your budget must be realistic and sustainable, and cover all essential household living costs.
The DRO intermediary will discuss with you, prior to submission, any areas of your essential living costs that the Official Receiver may consider high or low to ensure that your budget is realistic.
The Official Receiver has budget guidelines they consider when approving or declining a DRO application.
If your situation changes after you enter a DRO, including your income or expenses, you’ll need to notify the Official Receiver as soon as possible.
Yes, a Debt Relief Order (DRO) can stop bailiffs, but only from taking control of goods for debts included in the DRO. However, if bailiffs have already taken control of goods, or if there’s a controlled goods agreement (CGA) in place, a DRO may not stop them. It’s important to discuss your situation with your debt advisor to ensure all steps are taken to protect you.
If you have surplus income and aren’t on state benefit-only income, you may need to make payments toward your debts for up to four years. Your Trustee will assess your income and essential living costs to determine if payments are required.
Sequestration can impact your finances. It will be recorded on your credit file for six years, which may make it harder to get credit, loans, or a mortgage. You may face restrictions applying for credit over £2,000 without disclosing your sequestration.
Usually, you’ll be discharged from sequestration after one year. If you’ve entered sequestration through the MAP (Minimal Asset Protection) route, you’ll be discharged after six months.
No, once you enter a MAP, your debt management advisor usually handles communication with your creditors. This can take the pressure off you and reduce the stress of dealing with phone calls, letters, or debt collectors.
Yes. A MAP stays on your credit file for six years after approval. This may make it harder to borrow or result in higher interest rates if you apply for credit in the future.
Applying for a second Trust Deed is possible if you‘ve been discharged from the first one. There are no time limits for applying for another Trust Deed, but creditors will still need to approve it like your first arrangement.
If you own a home, you may need to release some equity to contribute towards your Trust Deed. Keeping up with mortgage payments is essential since your mortgage is a secured debt. If you’re planning to get a mortgage while in a Trust Deed, it may impact your ability to borrow.
Sometimes, creditors object to the Trust Deed if they feel they could get more of their money back another way. If your Trust Deed doesn’t get protected, your Trustee will look at other options for you. In the event that your creditors object to what’s in your proposal, our team will discuss other debt solutions to help manage your debts.
If you live in England, Wales or Northern Ireland and are struggling with unsecured debts, an IVA could be a suitable solution. To be eligible, you need to have a consistent surplus income after covering your essential living costs, which can be used to make monthly payments. Alternatively, if you have access to a lump sum, you may be able to offer this to creditors as part of a Full and Final IVA.
There are no upfront fees to enter an IVA with PayPlan. The costs associated with setting up and managing the arrangement are included within your agreed monthly payments. These fees are clearly outlined in your IVA proposal, so you know exactly what to expect. Learn more about IVA fees and how they work.
You can include a wide range of unsecured debts in an IVA.
This includes:
- Bank account overdrafts
- Loans from finance companies
- Credit or store card balances
- HMRC debts, such as outstanding tax and VAT
- Personal loans from family and friends
- Shortfalls on hire purchase agreements where the goods are no longer in your possession
Secured debts, such as mortgages, still need to be paid separately. Other debts that typically can’t be included are child maintenance arrears and student loans.
An IVA is an individual agreement and doesn’t directly affect your partner. However, if you have joint debts, your partner will remain fully liable for the entire balance. Your IVA will cover your share, but creditors may still pursue your partner for the repayment of the joint liability.