Personal Debt Management Plans

People get into debt for a number of reasons, in many cases it is not because they have been careless or even reckless with their spending. It is however often the result of a change in circumstances such as: loss of income through job changes, divorce or separation, illness and other life changing events. Most of our clients at Money Solutions contact us after attempting to keep up with repayments for long periods, and failing. There usually comes a point when the client realises that they have to take action towards getting debt free before it gets too late, and the final demands keep mounting up. The clients often have debts that are increasing on a daily basis with added interest and charges, effectively meaning their repayments are not reducing the overall balance. A Debt Management Plan from Money Solutions will put you back in control of your finances. We can help you do this without borrowing more money, with only one affordable monthly payment to make and a realistic possibility of getting any interest and charges frozen, your debts would then be repaid as quickly as possible.

Individual Voluntary Arrangements (IVA)

When a Debt Management Plan is not suitable, there are alternatives. An IVA (Individual Voluntary Arrangement) can be a realistic alternative to bankruptcy and allows you to become debt free relatively quickly (only five years in most cases). An Individual Voluntary Arrangement or IVA is a legally binding agreement between someone who is in debt and the creditors who are owed the money. Regulated by the Insolvency Act (1986) you will need the services or a licensed Insolvency Practitioner (IP) for an IVA. Money Solutions will refer you to an ethical provider of IVA services who can offer a fully licensed service for IVA�s. During the initial stages your Insolvency Practitioner will draw up legal proposals for you to make on offer in full and final settlement of you debts this could be in the form a lump sum or regular monthly payments over a period of (usually) five years. The arrangement need to be workable for the benefit of all those concerned.

Bankruptcy

Recent changes in the legislation covering bankruptcy laws have led to an increasing number of people choosing this option. The period of bankruptcy now usually lasts for a maximum of 12 months instead of the previous two or three years. However the restrictions on obtaining credit, being a company director or working in a certain professions still remain. Most people who have a regular income will also be required to make monthly payments for three years towards their debts based on what the official receiver thinks they can afford. If you own a property or other assets the Official Receiver will require you to sell there to pay back the money you owe. In relation to your home this could happen three years after the date of your bankruptcy, but without time limit for other personal assets.

Many of our clients are homeowners, either with or without significant equity in their property. For clients with no significant equity we can put you in touch with a leading provider of secured loan and mortgage services that can often find a much better deal and reduce your monthly repayments by hundreds of pounds a month without increasing your debt. In many cases this can give you the breathing space needed. If you have significant equity in your property but substantial unsecured debts, one option is to re-mortgage your property to take out a secured loan to raise money at a much lower interest rate. Once again this can be a way to reduce your monthly outgoings and remove the pressure from your unsecured creditors. You need to think carefully before taking this step and it is important to discuss the implications fully with a qualified financial advisor first. For immediate advice without anything to do with loans we can put you in touch with a leading provider of secured loans and mortgage services. YOUR HOME WILL BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINIST YOUR HOME.

Business Debts � Small Business

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