{"id":12460,"date":"2012-01-25T10:17:51","date_gmt":"2012-01-25T10:17:51","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=12460"},"modified":"2019-11-11T12:08:50","modified_gmt":"2019-11-11T12:08:50","slug":"solutions-for-debt","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/solutions-for-debt\/","title":{"rendered":"Solutions for Debt"},"content":{"rendered":"\n

Seven Solutions for Dealing with Personal Debt Problems<\/h2>\n\n\n\n

There are many solutions for dealing with problems of personal debt \nbut in the UK or specifically in England, Wales and Northern Ireland, \nthe top seven solutions probably account for over 98% of solutions. The \nlegislation in Scotland is somewhat different to the rest of the UK so \nit is excluded from consideration for the purposes of this article.<\/p>\n\n\n\n\n\n\n\n

In no particular order, the seven solutions can be summarized as follows:<\/p>\n\n\n\n

Negotiate with creditors<\/h2>\n\n\n\n

Firstly, you can seek to reach a negotiated agreement<\/strong> between you and your creditors to repay some or all of your debts. This is sometimes called a self administered debt management plan where you do all the negotiations with your creditors without the assistance of a third party.<\/p>\n\n\n\n

\"Applying<\/figure>\n\n\n\n

Loan<\/h2>\n\n\n\n

Secondly, you can seek to reorganize or clear your debts<\/strong> by obtaining a loan<\/strong> from a lender. This is sometimes called debt consolidation where you clear all or most of your debts from the funds borrowed in a single new loan. Now you usually have just one debt to service.<\/p>\n\n\n\n

Debt Management<\/h2>\n\n\n\n

Thirdly, you can engage the services of a debt management company<\/strong> to negotiate with your creditors on your behalf and to manage your payments to them. This is usually called a Debt Management Plan or a DMP.<\/p>\n\n\n\n

Administration Order<\/h2>\n\n\n\n

Fourthly, provided your debts total no more than \u00a35,000 and are owed to at least two creditors and provided that you have a court judgment entered against you by one of those creditors that you cannot pay in full, you can ask the court to make a County Court Administration Order<\/strong>, known as a CCAO. Under such an order you make weekly, monthly or quarterly payments to the court, which shares the funds among your creditors in proportion to the amounts you owe them.<\/p>\n\n\n\n

IVA<\/h2>\n\n\n\n

Fifthly, provided that you are insolvent and have regular income or assets or both, you can engage the services of an insolvency practitioner to prepare, negotiate and administer an arrangement for you to voluntarily repay your creditors some or occasionally all of the monies you owe them. Such an arrangement is called an Individual Voluntary Arrangement or an IVA<\/strong>.<\/p>\n\n\n\n

Debt Relief Order <\/h2>\n\n\n\n

Sixthly, if you have a low income, assets of no more than \u00a3300 and debts not exceeding \u00a315,000 in total, you can, without going to court, on payment of a fee of \u00a390, seek for a Debt Relief Order<\/strong> (DRO) to be made and if granted, your debts will be cleared in twelve months, without your having to make any further payments.<\/p>\n\n\n\n

Bankruptcy<\/h2>\n\n\n\n

Finally, if none of the six solutions above are suitable for your \ncircumstances, then the seventh option in this shortlist may appeal to \nyou. This of course is bankruptcy<\/strong>, which can be \ninitiated by you or indeed by one of your creditors to whom you owe at \nleast \u00a3750. Your assets are sold and you may also have to make payments \nfrom your surplus income for up to three years, to help clear your \ndebts.  <\/p>\n\n\n\n

Each of these solutions has some merit but they differ very much from\n each other. The best option for you will depend on your own personal \npreference, your current and future circumstances and those of your \nfamily. The amount you owe, your income and your assets will also have a\n major bearing on which options are available to you. To help you to \ndecide, you should look up the website of The Insolvency Service where \nyou can find a publication entitled \u2018In Debt \u2013 Dealing with your \nCreditors\u2019. This provides a detailed summary of the pros and cons of \neach solution and it compares and contrasts the various solutions with \neach other. It also provides contact details for various government \nfunded advice agencies where you may obtain free advice.<\/p>\n","protected":false},"excerpt":{"rendered":"

There are many solutions for dealing with problems of personal debt but in the UK or specifically in England, Wales and Northern Ireland, the top seven solutions probably account for over 98% of solutions.<\/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":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[6],"tags":[],"class_list":["post-12460","post","type-post","status-publish","format-standard","hentry","category-general-debt-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12460","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=12460"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12460\/revisions"}],"predecessor-version":[{"id":12482,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12460\/revisions\/12482"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=12460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=12460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=12460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}