{"id":1187,"date":"2013-12-16T11:22:24","date_gmt":"2013-12-16T11:22:24","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=1187"},"modified":"2019-02-12T16:10:36","modified_gmt":"2019-02-12T16:10:36","slug":"debt-solutions-compared","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/debt-solutions-compared\/","title":{"rendered":"Debt Solutions Compared"},"content":{"rendered":"\n

Different Debt Solutions and How they work<\/h3>\n\n\n\n

The contrast between Bankruptcy<\/a> and a Debt Management Plan<\/strong> is startling in terms of what creditors can expect to receive from borrowers who encounter financial difficulties. <\/p>\n\n\n\n\n\n\n\n

People who enter a Debt Management Plan can expect to be making payments to their creditors for many years if they are to repay the debt in full, although some creditors may agree to reduce or forego interest and penalties. Nevertheless although a Debt Management Plan can be a relatively attractive solution for creditors the long duration can be a disadvantage for the hard-pressed borrower.<\/p>\n\n\n\n

Borrowers who become insolvent and who declare themselves bankrupt or\n who are bankrupted by a creditor on the other hand can expect to be \ndischarged from bankruptcy within one year although they may have to \nmake contributions for up to three years via an income payments order. \nCreditors however will frequently receive little or nothing from the \nestate of a bankrupt when the fees and costs of bankruptcy are paid.<\/p>\n\n\n\n

The alternative to Bankruptcy and Debt Management: The IVA<\/h3>\n\n\n\n
\"Insolvency\"<\/figure><\/div>\n\n\n\n

Although it looks like a case of all (in a Debt Management Plan) or \nnothing (in Bankruptcy) for creditors, there is a third way. An \nIndividual Voluntary Arrangement (IVA) will usually yield a reasonable \ndividend for creditors who can expect a substantial portion of the \nborrower\u2019s debts to be repaid in a reasonable time frame. Most IVAs last\n for five years but the term can be considerably shorter if a lump sum \nsettlement is agreed. In a minority of cases the IVA may run for a bit \nlonger than five years but this is exceptional. Interest and penalties \non debts are frozen by law and repayment of between 20% and 40% of the \ndebt frequently occurs although in certain circumstances creditors may \naccept repayment of less than 20% and in a small number of cases up to \n100% of the debt may be repaid.<\/p>\n","protected":false},"excerpt":{"rendered":"

Different Debt Solutions and How they work The contrast between Bankruptcy and a Debt Management Plan is startling in terms of what creditors can expect to receive from borrowers who encounter financial difficulties. <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[2,4,7],"tags":[],"class_list":["post-1187","post","type-post","status-publish","format-standard","hentry","category-bankruptcy-articles","category-debt-management-articles","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=1187"}],"version-history":[{"count":4,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1187\/revisions"}],"predecessor-version":[{"id":2001,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1187\/revisions\/2001"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=1187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=1187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=1187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}