• Informal arrangements – these can be useful, particularly when you are dealing with only a handful of creditors. We can help you negotiate with creditors who will readily understand what their alternatives are if they see that we are involved.
• Debt management plans – managed by an outside agency these are informal agreements with your creditors to accept a lower monthly payment based on what you can afford and mainly deal with consumer debt. They are not legally binding and normally do not allow any of the debt to be written off. Used inappropriately they simply put off the inevitable and end in an IVA or bankruptcy.
• Individual voluntary arrangements (“IVA”) – these are formal arrangements with creditors that are legally binding on all creditors if 75% of your creditors agree. The arrangements need to be made via a licensed insolvency practitioner and are often based on monthly contributions, however they can involve one-off settlements or a better realisation of assets. They are not suitable for everyone and it is important that you take independent advice. Be very wary of so called IVA factories/specialists that can end up selling you the product they have on the shelf regardless of your needs.
• Bankruptcy – this occurs when a trustee is appointed by the Court to sell your assets and distribute them to your creditors. For most people bankruptcy lasts for one year but the consequences of bankruptcy can stay on your credit history for longer. It is important that you understand the implications of becoming bankrupt and if there are any alternatives. But for many people it is the best option.

Further specific advice on your personal circumstances call us on 0800 331 7417.