When you are struggling to make repayments on credit cards, loans, overdrafts and other borrowings you are classed as being insolvent. There is legislation available which allows you to put an offer to your creditors to make repayments based on what you can afford.
In order to qualify for this solution you must be able to show that you cannot afford your debts as they fall due. This is done by showing that you do not have enough money left each month to cover your living costs and your debt repayments together.
We will help you to identify a figure that you can afford, one that will allow you to pay for your essential living costs before making repayment towards your debts.
We will then put together a proposal to your lenders asking them to accept you onto the plan.
The amount of debt written off will depend entirely on your circumstances, how much you can afford to repay over the duration of the agreed plan and how much your total debts are at the beginning of the plan.
On completion of the plan, any remaining unpaid debt will be legally written off.
There are no rules on how much can be written off. It depends on getting your creditors to agree to the plan and to accept your offer. On average our clients generally write off between 60% - 70% of their debt on completion of the plan. You could however see more or less than this. Every plan is uniquely catered to your individual situation.
You need to be struggling with repayments on debts of at least £10,000 to 2 or more creditors. You also need to be able to offer a monthly repayment of at least £100 or offer a one off lump sum to your creditors.
If you have debts of less than £10,000 we can still help. Just fill in the form and we will contact you to explain your options.
You could have 1 affordable monthly debt repayment based on what you can afford.
The fees we charge for the plan are included in your monthly repayment and will be agreed by you and your creditors. Unlike a number of other companies offering the same service as us we do not charge you any hidden extra fees. If you are not successful in your proposal you pay us nothing whatsoever.
You will have full protection from your creditors . Any creditor harassment or pressure will be stopped and your case supervisor will deal with your lenders directly.
Most plans last for 5 years, sometimes a little longer. However, some plans can last as little as a few months where you can afford to offer a lump sum, for example.
Your interest and charges will be frozen.
The plan is suitable for tenants or homeowners, individuals or couples and even business owners.
We can set up your plan quickly
Only 75% of your creditors (by debt balance) need to accept your proposal to make it legally binding on all your other creditors.
If you are a homeowner or have property you may be required to introduce part of the equity (if there is any) in the final year of the arrangement. A remortgage may be restricted and on less favourable terms. If you cannot get a remortgage your arrangement can be extended for another year.
If you have a change in circumstances and need your plan amended, it is up to your creditors on whether they will accept the amended terms or not. We will do our utmost to negotiate with them on your behalf. If they do not accept the terms then your plan could fail and you will owe your creditors the full amount of your debt, minus what you have paid into the plan.
If your plan fails, your creditors may request that you be made bankrupt. This will be discussed before you commence the plan.
Your credit rating may be impacted for up to six years from the beginning of your plan.