IVA stands for Individual Voluntary Arrangement and is an arrangement where you pay just one affordable monthly payment to your creditors over a period of 60 months. At the end of your IVA you will be debt free as any outstanding debt is written off. IVAs were introduced by the government as part of the Insolvency Act 1986, and are legally binding on all parties.
If you have a severe debt problem and are struggling to meet your monthly repayments, an IVA could be the best solution for you.
* Do you owe at least £15,000 of unsecured debt?
* Do you owe this to 3 or more creditors?
* After you have paid your household bills (including secured loans) do you have at least £200 per month left over which can be paid into your IVA?
* Are you sick and tired of being stuck in the vicious cycle of borrowing and then borrowing more but the problem never goes away?
* Do you want to avoid bankruptcy?
Because applying for an IVA is a complicated legal process and can only be undertaken by a licensed Insolvency Practitioner, the costs of setting up the IVA are quite high.(Don’t worry though as One Advice do NOT charge you a penny. Our service to you is totally free of charge. Your creditors pay our costs from your monthly payments.)
Because your creditors pay our fees, the final return (dividend) to the creditors is less than what you pay into your IVA. Your creditors will apply two basic rules in deciding whether or not to accept an IVA:
1: Where your debts are below £15,000 the cost of the IVA as a proportion of the debt is too high to be economically viableWhere the monthly payment is under £200, the cost of running the IVA would take up to much of the money coming in to make it economically viable.
2: So if your debts are low, say under £15,000 and you are only re-paying £8,000, after our costs the return to your creditors is not high enough for them to accept the IVA. For that reason, IVAs tend to start at £15,000.
Simply! We will do all the work for you. You don’t have to worry about a thing. And you haven’t paid a penny. Through a series of telephone meeting we will prepare a detailed IVA proposal, which once you have approved it will be issued to your creditors to vote. If they vote in favour of your IVA, it becomes legally binding on your creditors.
If you are in debt then you need to seek expert advice. One Advice can help you find the right debt solution for you. For free advice contact us on 0800 019 5870 or take the One Advice 1 Minute Debt Test to see if an IVA is the right solution for you.
No. Unlike in bankruptcy you will not be required to sell your share in your home nor sell other assets to be shared amongst your creditors. Under an IVA, your mortgage, and any other secured payments, will be prioritised, which means we will ensure that you repay them before your IVA contributions are taken. Therefore your home is protected.
An IVA is a repayment plan which allows you to make reduced payments to your creditors. This can only be done with unsecured debts. If you owe money which is secured against an asset, i.e. your home or car, and you fail to meet your repayment obligations your creditors can take various actions including forced sale of the asset, i.e. your home. Therefore no deal can be done with secured debts.
As explained above, an IVA will determine your secured debts and ensure you can afford to meet your monthly payments by prioritising them. Your IVA therefore only covers your unsecured credit commitments such as; credit cards, store cards, catalogues, personal loans, overdrafts etc.
The IVA process is legally and financially complex and is therefore only allowed by law to be undertaken by licensed Insolvency Practitioners. If you act promptly to supply us with information that we ask for, we should be able to process your IVA application in 4 to 6 weeks. Some cases are so highly complex that they can take a little longer.
A licensed Insolvency Practitioner is the only type of financial advisor that is seen as an ‘expert’ in insolvency procedures under law. No doubt you have spoken to other so called experts before; you know the type, those who have had 2 days training in a call centre! They are not experts. Even mortgage advisors are not defined as experts under legislation. Insolvency Practitioners study for years and years to pass very difficult exams, mostly after previously qualifying as a Chartered Accountant or Lawyer. These experts are then qualified to apply Insolvency Legislation and act as Administrators and Liquidators of companies. Some Insolvency Practitioners choose to provide their valuable expert service to help indebted individuals to sort out their financial problems without having to borrow more money.
Typically an IVA should last for a 60 month period.
Firstly, if your creditors are chasing you before your IVA is accepted, the Insolvency Practitioner can apply to a county court for an ‘Interim Order’. Once in place, your creditors cannot continue with or commence new debt recovery proceedings against you. The Order remains until your IVA proposal is proposed to your creditors.
Secondly, once your IVA has been accepted, providing that you maintain your monthly payments your creditors are not allowed to take any action against you. They are legally obliged to contact us, acting as your legal representative. They are not allowed to contact you. Sometimes it takes a few months for all the different departments in your creditors to know that you are in an IVA as the communication within these big companies is often very poor. Nevertheless, within a few months you should not hear from your creditors again.
An IVA is a private legal agreement between you and your creditors. IVAs are not published in the local papers so you should not suffer from adverse publicity
Yes, it is usually possible for you to keep your vehicle, especially if there is a set reason why you need it, such as family commitments or because of your job. However, you might have to sell your car for a lower value vehicle. If you car is on hire purchase then speak to one of our IVA advisors as you may have to sell it back to the finance company.
Yes. This is a complex matter so we will not discuss it in detail here. Self employed people can undertake IVAs and small companies can do CVAs. If this applies to you then we will discuss this in detail with you.
Yes, but in reality you probably will not want to. If you owe money to the bank where your salary is paid into, guess what they could do when they receive funds…..take it all! One of the many benefits of an IVA is that you can open a new ‘simple’ bank account (without a cheque guarantee card or overdraft facility) with a bank that you do NOT owe money to. This ensures that you are totally in control of your income.
Yes. Once you apply for your IVA, your Insolvency Practitioner will notify the appropriate authorities and courts. Your Insolvency Practitioner will argue on your behalf that an IVA is in the best interest of all parties. If this is accepted your Bankruptcy will be annulled once your IVA is approved
If any of your financial or personal circumstances change within the duration of your IVA then you must contact your Insolvency Practitioner immediately. It is possible to modify your IVA to reflect your new financial situation. If the problem is more of a short term nature, emergency payments breaks can be granted. Whatever you do, speak to your Insolvency Practitioner. If you miss any payments without the Insolvency Practitioners permission then there is the chance that your creditors can commence bankruptcy proceedings against you. Successfully completing your IVA is the only way that you can be protected from your creditors.
Yes, but don’t worry. Borrowing too much money is what got you into this over indebted financial state in the first place. A poor credit rating will affect your ability to borrow more debt, but the last thing that you should be thinking about is borrowing more money, whether unsecured or secured.
If you are making monthly payments that are lower than the contracted amount or have missed payments then your credit rating is already damaged.
An IVA will allow your credit rating to be repaired more quickly. As soon as you enter an IVA it is stamped on your credit file and lasts for 6 years. However, the IVA lasts for 5 years, so in reality you have just 1 year where you may want to borrow with a poor rating. After that year, the IVA is removed from your credit file and you are shown as having no debt.
If you qualify for an IVA, it is often your best way to become debt free without the risk of losing any of your assets. An IVA means that you can avoid any of the same stigmas or professional disqualifications associated with bankruptcy, for example details about your IVA will not get publicised. For more information please see the One Advice IVA or Bankruptcy page.
Your landlord does not need to know about your IVA as long as payments are kept up to date.
Our fees are detailed in the IVA Proposal that is agreed to by you and your creditors (the people you owe money to) at the Creditors Meeting.
In an IVA all you pay is the amount you can realistically afford each month for the period of your arrangement (usually 60 months) and that is all you have to pay as long as you keep up the payments. You will not be expected to pay fees directly yourself and you will not be asked to pay additional fees over and above your agreed monthly IVA payment.
In return for making your IVA payments each month, your creditors agree to write off the debt you can't afford to repay and pay our fees out of the payments you have made to them. As such Insolvency Practitioners state that it is actually your creditors that pay our fees thereby essentially making the IVA free to you.
This is an important point. We are not saying that your IVA is free. You will make the monthly payment that you can afford and there are no additional fees. Out of these payments, your creditors effectively pay our fees.
There is not a magic figure that your creditors will look for in making the decision whether to accept you IVA proposal or not. This is a two way decision that must be in the interest of both parties; you and your creditors.
Firstly you: Your creditors want to see that you are proposing to make a fair payment that is affordable to you and is therefore sustainable for the duration of the IVA.
Secondly, your creditors: Your creditors will in turn agree to freeze all interest and charges and write off a large proportion of your debt. They will cease all collections and recovery activity, legal action, telephone calls and letters.
We will detail your household income (take-home pay and benefits) and expenditure (the cost of living i.e. food, utility bills and secured lending). No account has been taken to repay your unsecured debts at this stage. By deducting your expenditure from your income you are left with an amount (often called ‘Residual’ or ‘Disposable’ income) which is all you have left to service your unsecured debts. In the example below, we would expect you to make a monthly contribution to your IVA of £250 to repay your unsecured creditors.
| Monthly Income | Monthly Expenditure | ||
| Your take home pay (inc. overtime) | £1,200 | Mortgage/Rent | £700 |
| Partner’s take home pay | £690 | Council Tax | £100 |
| Other income (Benefits, maintenance etc) | £100 | Water/Gas/Oil/ Electricity/Phone/Mobile | £100 |
| Food/Household/Clothing | £600 | ||
| Car Expenses/Finance | £190 | ||
| TV Licence/Rental/Sky | £30 | ||
| Public Transport | £20 | ||
| Total household income | £1,990 | Public household expenditure | £1,740 |
| Monthly Disposable Income | £250 | ||
Each case is different and what your creditors will accept depends on your personal circumstances. No doubt you have heard of IVA cases where up to 80% of the debt is written off. These are true cases but they are also exceptional cases. The norm is much lower at around 60%.
Example of Debt Write Off:
| Your Unsecured Debts | £30,000 | |
| Contracted monthly payment | £750 | |
| Disposable Income | £250 | (from the above example) |
| Number of months in your IVA | 60 | |
| Contributions into your IVA | £15,000 | (£250/month x £15,000) |
| Debt Written Off | £15,000 | (£30,000 - £15,000) |
| Debt Written Off | 50% | (£15,000 / £30,000) |
Insolvency Practitioners are recognised in law as experts and are licensed to practice by one of the following bodies who ensure their compliance and regulate their service.
Yes. If you wish to pay a lump sum into your IVA, then we can arrange a variation meeting with your creditors to offer it and confirm any final settlement.
Under normal circumstances this will not happen, but it may be that you inherit a large sum or win the lottery. This is usually called a ‘windfall’. There will be a ‘windfall’ clause in your IVA contract that will require you to pay the money into your IVA. As your creditors have agreed to freeze interest and charges and write off a large proportion of your debt, it is only fair that you should come to a new arrangement with your creditors.
Your proposal needs 75% of the creditors (by value of debt owed) to vote in favour for it to be accepted. For example, if you owe £40,000, and every creditor voted, then you would require £30,001 of your creditor votes to be in your favour.
If the creditor (or group of creditors) that refuses your case is/are owed more than 25% of your debt then your IVA application has failed.
One of the most important tasks of the Insolvency Practitioner is to ensure that they obtain enough votes to get your IVA accepted. Insolvency Practitioners would not normally proceed with a case that would not get sufficient votes as it reflects badly upon them. If your Insolvency Practitioner decides to go ahead with your IVA proposal to your creditors, there is a good chance that it will be accepted.
In effect nothing, because we are one of the longest established and largest debt solutions companies in the UK. One Advice specialises in IVAs and we are very successful at getting them accepted by creditors. Therefore we can afford to absorb the cost risk of the very few rejections that occur and unlike most Insolvency Practitioners do not need to charge you upfront fees.
No, as an IVA is as legal process it means that once it has been set up it cannot be cancelled.
This might happen whilst your IVA is going through, but as soon as it has been approved then they cannot take any further action.
For an IVA you will probably have three or more.
As soon as your IVA proposal is prepared then the court will be notified, which is usually sufficient to stop proceedings. If this does not happen then your advisor will write to the court and the creditors.
Providing that all the terms of your proposal have been carried out, then your creditors will have no further claim against you and any outstanding debts will be written off.
This is dependant on your circumstances. It is important that you are able to keep up regular monthly payments so that your creditors will not feel the need to cancel any agreements. This is why we will work out a tailor made payment plan which is based on your earnings and expenditure.
You will have to continue to make payments until all your debts have been repaid in full.
Your monthly payments will be proportioned based on how much each creditor is owed. You will receive a statement showing how much each creditor will be issued, and from then on you will receive a quarterly statement showing all the transactions that have been made from us, as well statements from your creditors.
A Debt Management Plan and a Debt Consolidation loan do a similar thing, they both offer you one single payment to make to your unsecured creditors. A debt consolidation loan means that you will have to take out a loan to pay off your creditors. A debt management plan does not require any further borrowing, as One Advice will negotiate with your creditors so that they accept a lower payment to your debts.
Your first month’s payment will go towards our implementation costs of setting up the programme and negotiating with your creditors. From there we have an ongoing administration cost which is included as part of your monthly payment – not taken in addition.
No, it is a way of consolidating your repayments into one affordable payment without further borrowing.
With a Debt Management Plan, you make one lower monthly payment to us instead of unaffordable monthly payments to your creditors. One Advice will do our best to try and get your creditors to freeze any interest and charges on the account, but this cannot be guaranteed. You can forward any creditor correspondence to us and we will deal with it on your behalf.
Although a Debt Management Plan is able to include most of your existing creditors, there are those which cannot be included. These are called “priority debts”, meaning that if they are not paid then there will be serious consequences, such as not paying your mortgage could result in your house being repossessed.
Taking out a debt management plan will mean that you will be breaking the terms and conditions of your initial repayment agreement with your creditors. This means that it is likely to have an adverse affect on your credit record. However if you are currently failing to make your monthly payments then your credit rating will already be poor.
No, as we are not lending you any money we will not need to credit check you.
A Debt Management Plan means that you are defaulting on the original terms and conditions that you agreed with your creditors. Your Creditors are therefore entitled to issue a Default Notice.
As a debt management plan is not a legal procedure, there is no guarantee that your creditors will accept. However it the agreement is beneficial to both parties then it is likely to be accepted.
This is possible, but it is important to remember that instead of struggling with your debts now, you will be paying a smaller monthly payment. It is also possible that creditors may freeze interest and other charges on your account so that you are able to pay your debt off at a quicker rate.
Yes, you will be able to get a Debt Management Plan if you have any existing CCJ’s (County Court Judgements), and may be able to use your Plan to make repayments.
You do not have to be a tenant or a homeowner to be eligible for a Debt Management Plan, and as long as you have a surplus of income then it does not matter about your employment status.
If you find yourself in a situation where you are able to pay off more than you were previously, then we will be able to replace it with an alternative arrangement.
A Debt Management Plan is designed to make your monthly creditor payments much more affordable to you. But as you will be paying a smaller monthly amount, it will take you longer to clear your debts.
You do not have to tell anyone about your Debt Management Plan, if you so wish. We will also not disclose any information about your plan, unless you give us permission to do so.
If you find yourself struggling with large amounts of debt, there are solutions out there to help you. The One Advice website gives you an overview, but the best thing you can do is to contact one of our advisors on 0800 019 5870.
A Debt Management Plan offers you a way to make reduced repayments to your creditors. But if you qualify for an IVA (Individual Voluntary Arrangement) then any unaffordable debt can legally be written off as part of the agreement. Bankruptcy is a very serious route to take and you should consider all other options first.
It is likely that your creditors will no longer wish to continue to support you on your Debt Management Plan and may withdraw any previous help. However, there is more flexibility than with an IVA. If you are struggling to make your payment, talk to your case handler who will advise you.
Bankruptcy is a legal process for those who can no longer afford to pay back their debts, if you owe more than £750. A Bankruptcy Trustee is assigned to sell your assets and distribute the funds accordingly. Once this process has begun, creditors can not process any further claims against you. For more information please see our What is Bankruptcy page.
Anyone can declare themselves Bankrupt as long as they are a resident of the UK and the debts were occurred in the UK.
You will have to present your Bankruptcy application documents at your local County Court. You will also need to pay a court fee and appear at Court in person. For more detailed information about how to declare yourself bankrupt, please see the Declaring Bankruptcy page.
As soon as the bankruptcy is declared, all your assets will become the possession of your Trustee in Bankruptcy. They have the authority to sell them in order to pay some of your debts, and this can be done without your consent. You may lose high value assets such as jewellery, shares and any interest you have in your property.
If the Trustee or Official Receiver determines that you have surplus monthly income, they will apply to court for an Income Payments Order which will force you to pay a monthly sum for 3 years. The only items that you will be able to keep are basic household amenities and any tools associated with your employment. You may keep your car if it can be shown to be essential for work or domestic purposes, but if it is of high value then you may be required to trade it in for something cheaper and hand over any surplus.
Once you have been declared bankrupt, your credit reference agencies will be notified. The bankruptcy order will remain on your file for six years. Even after this time you may still have to declare your bankruptcy status when applying for credit, such as a mortgage.
There are many negative consequences which are connected to Bankruptcy which are sometimes flippantly disregarded, as it can be seen as the 'easy' option to write off all your debts. It still has a social stigma attached to it, as your details would be advertised in your local newspaper and are available online. It will be difficult to apply for future credit or bank accounts, and certain career prospects will be closed to you.
Bankruptcy can be defined as:
The legally declared inability or impairment of ability of an individual or organisations to pay their creditors. An insolvent person can be legally relieved of of their financial obligations.
There are often a number of alternatives which should be considered. Examples of these include an IVA, which will be able to write off a large proportion of your debt and you pay a set amount back, typically over 60 months. A Debt Management Plan may also be a viable option.
For more details please contact our free phone number: 0800 019 5870. Alternatively fill in the online Quick Enquiry form and we will call you back.
There are many implications in Bankruptcy which cannot be avoided, which include a Trustee being in charge of your assets and to gain credit of more than £500 you must declare your bankrupt status. For more information please see the One Advice After Effects of Bankruptcy page.
Whether or not your home is solely or jointly owned, it may have to be sold to help pay off your debts.
This may be dependant on your tenancy agreement, as if you fail to make payments to your rent then the landlord can take action against you. If you keep up on your repayments then the Official Receiver will not have much interest as they cannot sell your rented home to make repayments to your creditors, but it is always best to seek professional advice so that you are aware of your legal rights.
It depends on the sector that you are in. If you are a member of a professional body then you may have to resign, but check your contract Terms of Employment which should provide you with more information.
It is possible that the Court fees can be reduced if you are in receipt of certain benefits. For more information about this, please contact your local County Curt.
Although bankruptcy does clear most of your earlier debts, there are still those which are not written off. These include Court fines, Child support, Debts connected with fraud, Student Loan Company debts and Secured creditors.
The right debt solution for you is dependant on a number of factors. There are many reasons why people opt for an IVA over Bankruptcy, and visa-versa.
One Advice would always recommend that you seek expert debt advise before you declare yourself bankrupt. For free bankruptcy advice, contact our professional bankruptcy advisors on 0800 019 5870.
Bankruptcy ensures that your creditors will all get paid fairly, but there is a certain order in which this happens:
Yes, there are alternatives to Bankruptcy and One Advice would recommend that you seek other debt solutions before declaring yourself bankrupt.
Take the 1 Minute Debt Test to see which debt solution is right for you.
Although you will be struggling with financial problems, if you petition for your own bankruptcy, then yes it will cost you to go bankrupt. The Court fee is currently: £345 towards the administration of your bankruptcy order, £150 court fee and £7 for swearing of the statement of affairs in High Court or before a solicitor.
Bankruptcy offers you a fresh financial start, so it is important that you take stricter control over your finances. Bankruptcy will only deal with your debts before the date of the bankruptcy order. New debts after this date will not be included, and could result in further bankruptcy order and prosecution..
No, all of your bank accounts will be closed and any money will be used to pay your creditors. You will only be allowed to open a new bank account with permission from your Trustee. If you have a joint bank account then only half the funds will be taken.
Yes, bankruptcy orders are advertised in your local newspaper and your details are placed within the public domain on the bankruptcy register, which is maintained by the Department of Trade and Industry and the Insolvency Service.
This is in addition to anyone which you have a financial relationship with, such as a landlord or mortgage company.
Yes, there is a process where a person can be discharged from Bankruptcy which means that they are released from any of the restrictions imposed on them by their Bankruptcy Order.
You can only include your Student Loan Company debt if it was taken out before 1st September 2004. If it was after this point then you will still have to continue making payments from your salary until it has been paid off in full.
We would strongly advise that you are honest with all your financial dealings to your partner. If you do not have any joint debts then it will not make any difference, however a mortgage is considered to be one. If you live together, then the bankruptcy order will be held against your residential address which may affect them. If you have equity to your home this will be dealt with in the bankruptcy and this will obviously involve your partner.
As long as there is no joint debt then your partner will not be directly affected by your Bankruptcy Order, such as having to make contributions from their own wage/income.
However, if you have joint debts, such as a mortgage then you are both liable for these debts. So creditors will often want the partner to pay in full any debt that is included in the bankruptcy order.
Once your order has come to County Court, you will be given a date which you must attend. The hearing will involve a number of detailed analyses over your financial status, and it will end with a decision on whether or not bankruptcy will be granted, or it will perhaps offer other alternatives.
It is dependant on the situation on which you have been made bankrupt, but the average period is 12 months. The Official Receiver could shorten this period if they have completed their enquiries earlier and file a notice to that effect in court.
Other ways that the bankruptcy duration can be reduced are if the court annuls the order as the debt has been paid or that it should not have been declared in the first place. Even though you Order may end early you should still remember that there are some effects of bankruptcy which cannot be cleared.
You should take this matter very seriously if you find yourself in the position to declare yourself bankrupt again. The minimum bankruptcy discharge period is 5 years, and may continue for 15 or more.
Unfortunately, your Trustee will have the ability to take your home, unless your partner can purchase your share of the equity. Any available equity will be passed over to the creditors.
Any pension payments during your bankruptcy order will be considered as an income, so it will be paid to your Trustee.
It is dependant on each individual case, and our trained staff will help you through the process and come to a decision.
We will detail your household income (take-home pay and benefits) and expenditure (the cost of living i.e. food, utility bills and secured lending). No account has been taken to repay your unsecured debts at this stage. By deducting your expenditure from your income you are left with an amount (often called ‘Residual’ or ‘Disposable’ income) which is all you have left to service your unsecured debts. In the example below, we would expect you to make a monthly contribution to your Trust Deed of £250 to repay your unsecured creditors.
| Monthly Income | Monthly Expenditure | ||
| Your take home pay (inc. overtime) | £1,200 | Mortgage/Rent | £700 |
| Partner’s take home pay | £690 | Council Tax | £100 |
| Other income (Benefits, maintenance etc) | £100 | Water/Gas/Oil/ Electricity/Phone/Mobile | £100 |
| Food/Household/Clothing | £600 | ||
| Car Expenses/Finance | £190 | ||
| TV Lisence/Rental/Sky | £30 | ||
| Public Transport | £20 | ||
| Total household income | £1,990 | Public household expenditure | £1,740 |
| Monthly Disposable Income | £250 | ||
You will be dealing directly with a licensed Insolvency Practitioner. An Insolvency Practitioner is the only type of financial advisor that is seen as an ‘expert’ under law. No doubt you have spoken to other so called experts before; you know the type, those who have had 2 days training in a call centre! They are not experts. Even mortgage advisors are not defined as experts under legislation. Insolvency Practitioners study for years and years to pass very difficult exams, mostly after previously qualifying as a Chartered Accountant or Lawyer. These experts are then qualified to apply Insolvency Legislation and act as Administrators and Liquidators of companies. Some Insolvency Practitioners choose to provide their valuable expert service to help indebted individuals to sort out their financial problems without having to borrow more money.
Yes, but don’t worry. Borrowing too much money is what got you into this over indebted financial state in the first place. A poor credit rating will affect your ability to borrow more debt, but the last thing that you should be thinking about is borrowing more money, whether unsecured or secured.
If you are making monthly payments that are lower than the contracted amount or have missed payments then your credit rating is already damaged.
A Trust deed will allow your credit rating to be repaired more quickly. As soon as you enter a Trust Deed it is stamped on your credit file and lasts for 6 years. However, the Trust Deed lasts for 3 years, so in reality you have 3 years where you may want to borrow with a poor rating. After that, the Trust Deed is removed from your credit file and you are shown as having no debt.
In principle, a Trust Deed is the Scottish equivalent of an IVA.
We have tried to provide some more information on this website, but the best route to take is to contact one of our advisors who will be able to talk you through your options.
You will not necessarily lose your house, but any equity may be released to help pay off your debts.
It will cover most of the debts that you have, but there are some which will not be written off. These include mortgages, secured loans, student loans or fines.
It is very important that you contact your Insolvency Practitioner immediately if your financial arrangements change for any reason.
If you do not keep up your repayments then your creditors may start bankruptcy (sequestration) proceedings against you.
Any remaining debt will be written off.
Secured debt works against the assets that you own, so if you fail to keep up on repayments then these may be at risk, items include your car or house. Unsecured loans are not held against any items.
On average it should take about 6 weeks.
One Advice advisors are here to help you with any debt solution plans.
No, it is a legal process that is agreed with your current creditors to repay your debts.
On average a Trust Deed will last 36 months.
No, any interests or charges on your accounts will be frozen from the commencement date of your Trust Deed.
This basically means that no further action will be taken on your account by the creditors.
No, your account must be handled by a qualified Insolvency Practitioner.
Lenders can apply for repossession when you account goes into default But most commonly lenders will take you to court with a minimum of three months mortgage arrears, which do not have to be consecutive,
If you have mortgage arrears then it is important that you seek help as soon as possible. Make sure that you contact your lender asap and explain the situation and the steps that you are going to take to resolve the matters.
You may find that you are struggling to pay your mortgage because you are over committed to your unsecured debt, this is where One Advice can help. We can offer you free advice on a number of leading debt solutions, including debt management plans and IVAs.
It is sometimes possible to stop repossession. One Advice are here to help with all repossession questions, so please contact us on 0800 019 5870.
The most common ways to stop repossession are that you have a buyer for your home, you can now afford the mortgage payments or you can pay off your mortgage by selling assets.
When your home has been repossessed, it will be passed to a third party company who have been employed by the lender. This company will prepare the property for resale and for an estate agent to find a buyer for the home.
If you owe money to both your unsecured debts and your mortgage, it is important that you make payments to your priority debts, which is your mortgage. Failure to pay your mortgage means that you risk losing your home. If you find that you are struggling to stay on top of your debts, call One Advice on 0800 019 5870 to see how we can help.
A Postponed Possession Order is granted by the court when they are convinced that you are taking active steps in paying off your mortgage arrears and that you will soon be in a position to clear them.
A Suspended Repossession Order means that you have agreed a payment schedule with your lenders which will reduce your mortgage arrears. Failure to keep to the terms of this Order means that lenders can apply for a Repossession Order.