There are several debt solutions available to help you clear your debts and the most common options are outlined below. The team at Michael Alan are here to help find the best solution for you and provide free expert advice, so get in touch with us today.
Debt Solutions We Can Help With
There are a number of debt solutions that can help people become debt free. Dependant on your circumstances and your financial situation, we can look at certain debt solutions that are tailored around you and suit your needs best.
Please find below a number of debt solutions that are available for UK residents.
An IVA (Individual Voluntary Arrangement) is an agreement between you and your creditors to address your debts – you make an affordable monthly payment each month for a period (usually 5 years) and once the IVA is successfully completed, the remaining debt is written off.
A debt management plan (DMP) is an agreement between you and your creditors to help pay off all your debts. Any debts managed through the plan will be paid off in full, but charges, interest and payments may be frozen or reduced depending on your creditor.
Debt Relief Order (DRO) is a quick and simple alternative to bankruptcy and is a solution for those who have limited means. The debts in a Debt Relief Order are written off after 1 year.
A Trust Deed is only available to Scottish residents and is an agreement between you and your creditors – you agree to an affordable monthly payment over a given period (usually 4 or 5 years) and creditors agree to write off any outstanding debt at the end.
Bankruptcy may be considered when your debts outweigh your existing income and assets. It involves applying to the court to clear your debts, however, it may negatively affect your long-term plans so it should be carefully considered.