Debt Solutions

When your debt starts to get out of control, it is important that you find a solution that is right for your circumstances. One Advice can offer you free advice and information on a number of debt solutions available, including:

• Debt Management: An informal agreement with your creditors where you make one low monthly payment to your debt.
• IVA: The only debt solution that can write off part of your debt, without declaring you bankrupt! An IVA is a legally binding creditor agreement where the you pay a fixed monthly payment for 60 months, then an debt is written off.
• Trust Deed: The equivalent to an IVA for residents of Scotland.
• Bankruptcy: An extreme debt solution. If you are thinking about declarig yourself bankrupt, please contact One Advice to see if there is another solution.

To help you understand the options available to you in more detail, simply fill in the enquiry form so that we can contact you or call us on 0800 019 5870.

Comparing the Debt Solutions:

Below you will see a simple table detailing the features and benefits of the four main debt solutions. Put simply, the more ‘Yes’ answers the better!

	Debt Management	IVA	Consolidation Loan	Bankruptcy
Will my debts be cleared within an agreed period?	No	Yes	Yes	Yes
Will interest be frozen?	Possibly	Yes	No	Yes
Are my creditors likely to accept less than I owe?	No	Yes	No	Yes
Will my debts be reduced?	No	Yes	No	Yes
Will this stop my debts from increasing?	No	Yes	No	Yes
Is the service Free?	No	Yes	No	No
Will I be able to avoid selling my home?	Probably	Yes	Yes	No
Am I protected from my unsecured creditors?	No	Yes	No	Yes
Will my creditors stop pursuing me for repayment?	Possibly	Yes	Yes	Yes
Will I be seen to be trying to do the right thing by my creditors?	No	Yes	Yes	No
Do I retain control of the situation?	No	Yes	Yes	No
Is it a confidential procedure?	Yes	Yes	Yes	No
Will I avoid the stigma of bankruptcy?	Yes	Yes	Yes	No
Will the procedure be administered by a licensed Insolvency Practitioner?	No	Yes	No	Yes

 

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)