Direct Gov on informal arrangement

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/Debtrepaymentoptions/DG_187449

An informal arrangement (IA) is a way of dealing with your debts. You agree to make regular payments over a period of time to your creditors (people you owe money to). Find out how an IA works, how it affects you and where to get help setting one up.

How does an IA work?

An IA is one way to help you deal with your debts. You contact your creditors (people you owe money to) and ask them to agree to accept regular lower repayments towards all or part of your debts. Your creditors don’t have to accept your IA and can cancel it at anytime.

Get free help and advice about debt

You can get free and independent advice about IAs and if they are the best way to deal with your debt problem from organisations like the National Debtline.

• Debt - where to get free help and advice

• Dealing with debt problems - a guide

Your IA responsibilities

You are responsible for making all the agreed repayments and keeping your creditors up to date about your finances.
If your financial situation gets worse, for example, you lose your job, you can try to negotiate another arrangement. If your circumstances improve, your creditors may expect you to increase your repayments.

Cost of an IA

There is no cost to set up an IA, but small repayments may not cover any interest or charges. If this happens, the amount of debt you have to repay and the time it takes to pay it off can increase.

Steps to get an IA

Get free and independent advice to help you find the best way to deal with your debts

You can set up an IA yourself, but you should make sure that it is the right way to deal with your debts. To set one up and make sure it’s the right way to deal with your debts, get free help and advice from organisations like Citizens Advice or the National Debtline.
Other organisations can help you set up an IA, but they may charge a fee. You should get them to confirm their costs before asking them to help you with the IA.
Step one: work out a budget. This will show you how much you can afford to pay your creditors each month after you have paid essential living expenses (like your rent, mortgage and household bills).
Step two: write out your IA, showing what you can reasonably afford to repay and over what period of time.
Step three: write to each of your creditors explaining your situation and asking them to accept your IA.
You can get free advice from organisations like Citizens Advice and the National Debtline if your creditors don’t accept your IA.

• How to work out a budget

Useful contacts

• Money, tax and benefits contacts

In this section...

• Debt repayment options - a guide
• Administration Orders - ways out of debt
• Consolidating debts
• Debt management plans - ways out of debt
• Individual voluntary arrangements (IVAs) - ways out of debt
• Debt relief orders - ways out of bankruptcy
• Fast-track voluntary arrangements - ways out of bankruptcy

Was this information useful?

fee charging debt management industry

http://www.moneyadvicetrust.org/content.asp?ssid

Friday 28^th January 2011

FIT FOR PURPOSE?

Commenting on today’s announcement from the Office of Fair Trading (OFT) regarding debt management companies, Joanna Elson OBE, Chief Executive of the Money Advice Trust, said:

The news that 50 debt management companies have failed to meet the OFT’s requirements to keep their licence is further evidence that the fee charging debt management industry is not fit for purpose. The OFT originally investigated 143 companies, more than a third of which have been unable to respond to the OFT’s concerns about their poor practices. It will be difficult for consumers to put their faith in this type of company knowing just how widespread these poor practices are.

“We have heard fee charging debt management companies claim their industry is necessary because not-for-profit providers are unable to meet  the demand for help. But the OFT’s investigation makes it crystal clear that much of the fee charging industry is not in a fit shape to be trusted to fill that gap.

“We are also concerned that many people turn to fee charging debt management companies from a position of forced ignorance, unaware of free independent debt advice such as National Debtline or Citizens Advice since charities don't have the advertising budget of the fee-chargers. That's why we believe that all licensed debt management companies should be obliged to inform customers of free, independent alternatives.

“Dealing with unmanageable debt is a difficult problem that leaves many people vulnerable. It is vital that people who take the brave step of trying to repay their debts and get on top of their finances are helped back to financial health, rather than preyed on by commercial organisations eager for a quick profit.

“I would advise anyone with concerns about their financial circumstances to seek free, independent advice from agencies such as National Debtline, Citizens Advice or CCCS.”

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National Debtline Debt Management Plan

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=29_debt_management_plan

Factsheet | Debt Management Plan (DMP)

Quicklinks

1. What is a debt management plan (DMP)?
2. Who can use the service?
3. How does it work?
4. Is it the best option for me?
5. What do I do next?
6. Your credit reference agency file

Help

Are you struggling to pay credit cards, loans, store cards or catalogues? Would you like someone to help sort out your payments and talk to creditors for you? Would you like to be able to pay one affordable amount to all your creditors each month? If this sounds like you, a debt management plan may be just the thing.

What is a debt management plan (DMP)?

• A DMP is an affordable repayment programme set up by National Debtline and managed by an independent company.
• We help you work out what you can afford to pay each month.
• You pay this amount to the debt management company.
• The debt management company pays your money to all your creditors for you.

Back to top Phone us for advice 0808 808 4000

Who can use the service?

Anyone who answers yes to these three questions.

• Do you have debts of £5,000 or more?
• Do you have at least two or more debts with either the same or different creditors?
• Do you have £100 or more available income per month?

Back to top Phone us for advice 0808 808 4000

How does it work?

First you need to put together a personal budget sheet to see whether you have enough available income. You can use our pack ‘Dealing with your debts’ which includes a budget sheet and a guide on to how to complete it.

• Add up all your household income. Then add up all your essential expenses, like rent, mortgage, household bills, food, travel, child care.
• Take the second figure from the first.
• What you have left over is your available income to pay your credit debts.

Information

If your available income is £100 or more, a DMP might be a good option for you.

Back to top Phone us for advice 0808 808 4000

Is it the best option for me?

A DMP is a good option for people who can afford to make regular payments to their creditors and want an easy, hassle-free way to pay. At National Debtline we look at all your options with you so that you can make the best choice.
We can give you more information about DMPs, as well as advising you on bankruptcy, individual voluntary arrangements (IVAs), debt relief orders (DROs) and self-help options for dealing with your debts.

Warning

Creditors do not have to freeze interest under a DMP. You have to persuade each creditor that it makes sense for them to freeze interest and charges to avoid the debt increasing.

Information

Under the rules in the Consumer Credit Act 1974, your creditors will usually have to keep sending you annual statements, as well as arrears and default notices in a set format. This will happen even when you are in a debt management plan. Don't worry, this does not mean that there is a problem with your debt management plan. If you receive other letters from your creditors demanding payment, phone us for advice.

Information

If you would like more information on anything about your debts, phone us for advice.

Remember

Our advice is free, independent and completely confidential.

Back to top Phone us for advice 0808 808 4000

What do I do next?

If you are interested in a DMP with National Debtline and you are a first time caller, phone us now on our freephone number 0808 808 4000. When you ring, select Option one to speak to an adviser who can give you more information about DMPs and advise you on your options.
If you have called us before and we have advised you that a DMP is a good option for you, please call our freephone number and select Option four to speak to the Referrals Team who can help you with your application. They will then send you our DMP application pack.

Back to top Phone us for advice 0808 808 4000

Your credit reference agency file

Warning

If you miss payments on a credit debt, this will be recorded on your credit reference file by your creditor whether or not you then set up a DMP. This will usually make it harder for you to get credit. Some creditors may also ask for a note to be put on your credit reference file to say you are on a DMP.

Advice

If you need further information on how to obtain a copy of your credit reference report, phone us for advice.

Back to top Phone us for advice 0808 808 4000

Remember

You can always phone us for advice about any difficulty you are having in dealing with your debts.

Freephone: 0808 808 4000 Website: www.nationaldebtline.co.uk
© Copyright National Debtline 2002 (updated June 2010).
Whilst we endeavour to keep the content of our website as up to date as possible, National Debtline cannot be held responsible for any changes in legislation or for developments in caselaw since this information was published.

Money Advice Trust

http://www.moneyadvicetrust.org/

Welcome to the website of the Money Advice Trust

We are a charity formed in 1991 to increase the quality and availability of free, independent money advice to people with debt problems.

Independent money advice is proven to help people who are struggling to manage their debts.

The Money Advice Trust works with its partners to make sure people with debt problems have access to the money advice they need.
LATEST
13 April 2011MAT comments on April's unemployment figures
Click here for more information 13 April 2011BDL comments on difficult times for pub landlords
Click here for more information 28 March 2011BDL comments on the launch of StartupBritain
Click here for more information 28 March 2011MAT launches research into men and debt
Click here for more information 23 March 2011MAT comments on the 2011 Budget
Click here for more information
23 March 2011Business Debtline comments on the 2011 Budget
Click here for more information
28 January 2011MAT comments on the OFT's update regarding the crackdown on debt management companies
Click here for more information
28 January 2011MAT comments on the 2010 reposession figures from the CML
Click here for more information
19 January 2011MAT comments on January's unemployment figures
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MAT News

To view the latest edition of MAT News please click on the link below

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Wikipedia on Bankruptcy

http://en.wikipedia.org/wiki/Bankruptcy_in_the_United_Kingdom

Bankruptcy in the United Kingdom does not have a singular law. There is one system for England and Wales, one for Northern Ireland and one for Scotland.
Across the United Kingdom, bankruptcy refers only to insolvency of individuals and partnerships. Other procedures, for example liquidation, apply to insolvent companies.

Contents [hide] 1 Bankruptcy in England and Wales 2 Insolvency statistics for England and Wales 3 Bankruptcy in Scotland 4 See also 5 External links

[edit] Bankruptcy in England and Wales

Bankruptcy in England and Wales is governed by Part IX of the Insolvency Act 1986 (as amended) and by the Insolvency Rules 1986 (as amended). The term bankruptcy applies only to individuals, not to companies or other legal entities.
An individual may be made bankrupt only by court order following the presentation of a bankruptcy petition. An individual may present his own petition on the ground that he is insolvent, i.e. unable to pay his debts. A creditor or creditors may also petition for a bankruptcy order to be made against an individual debtor.
Before a creditor presents a bankruptcy petition he must usually first serve on the debtor a statutory demand in the prescribed form requiring the debtor to pay the sum claimed within 21 days of service of the demand. The debtor may apply to the court to set aside the demand on the basis that the debt is disputed on bona fide grounds or that he has a counterclaim, set off or cross-demand which equals or exceeds the amount of the debt claimed by the creditor. If the debtor fails to pay the sum claimed in the demand or to apply to set aside the demand or if his application to set aside the demand is dismissed by the court, the creditor may present a bankruptcy petition. Alternatively, a creditor may petition without first serving a demand if execution on a judgment has failed. In either case the debtor must owe the creditor at least £750 and the claim must be for a liquidated sum, i.e. a fixed sum of money (not, for example, damages).
A bankruptcy petition must generally be served on the debtor personally, but if he evades service the court may order substituted service, i.e. service by post or some other method which is likely to bring the demand to the debtor's attention.
At the hearing of the petition the court may make a bankruptcy order if the debt is undisputed or not capable of being disputed, dismiss the petition (for example if the debt has been paid) or adjourn the petition to give the debtor time to pay.
If a bankruptcy order is made the administration of the bankrupt person's affairs is handled by a trustee in bankruptcy who must be either the Official Receiver (a civil servant) or a licensed insolvency practitioner appointed either by the Secretary of State or by the creditors at a meeting called for that purpose. The bankrupt's assets (excluding tools of his trade and other essentials) vest in his trustee who is obliged to realise them (generally by selling them) to pay a dividend to creditors.
A bankrupt person is subject to certain restrictions, principally that he may not raise credit without informing the person from whom he is borrowing that he is a bankrupt, and that he may not act as a director of a company. He is also subject to obligations to give information to his trustee and to cooperate with him in the administration of his affairs. Extensive powers are available to enable the court to compel the bankrupt to do so. Similarly the court has power to undo a range of transactions entered into by the bankrupt with a view to dissipating or reducing the value of his assets in the period before his bankruptcy.
Following the coming into force of the Enterprise Act 2002's bankruptcy provisions in April 2004, an England & Wales bankruptcy will now normally last no longer than 12 months and maybe less, if the Official Receiver files in Court a certificate that his investigations are complete. At the end of that period the bankrupt is discharged and he ceases to be liable for his bankruptcy debts. However, in cases where the bankrupt is considered culpable for his or her insolvency, a bankruptcy restrictions order may be made to extend some of the restrictions of bankruptcy for up to 15 years.
As an alternative to bankruptcy a debtor may propose an Individual Voluntary Arrangement (IVA) to his creditors (see Part VIII of the Insolvency Act 1986) or a Debt Relief Order if debts do not exceed a certain threshold. An IVA takes the form of a proposal to creditors to pay some or all of the debtor's debts over a period of time by selling assets or making payment out of income or a combination of the two. The proposal must be approved by a licensed insolvency practitioner who will convene a meeting of creditors to consider it. Approval requires a majority vote in value in excess of 75%. If the proposal is approved it binds all the debtor's creditors whether or not they have voted in favour of it.
In theory it is also open to a debtor to make a proposal to his creditors by deed of arrangement under the Deeds of Arrangement Act 1914, but this procedure has fallen into disuse since the introduction of voluntary arrangements under the Insolvency Act 1986.

[edit] Insolvency statistics for England and Wales

Individual insolvencies in England and Wales, 1997 to 2007

Year	Total	Bankruptcies	IVAs
1997	24,441	19,892	4,545
1998	24,549	19,647	4,901
1999	28,806	21,611	7,195
2000	29,528	21,550	7,978
2001	29,775	23,477	6,298
2002	30,587	24,292	6,295
2003	35,604	28,021	7,583
2004	46,650	35,898	10,751
2005	67,584	47,291	20,293
2006	107,288	62,956	44,332
2007	106,645	64,480	42,165

• Source: The Insolvency Service [1]

[edit] Bankruptcy in Scotland

Main article: Sequestration

Bankruptcy in Scotland is called Sequestration and the organisation responsible for administering these processes is the Accountant in Bankruptcy. There are alternatives to bankruptcy that can help individuals deal with debt problems, these include a scheme run by the Scottish Government called the Debt Arrangement Scheme. Other options include Trust Deeds, these are types of agreement arranged between the individual in debt and his or her creditors. There are organisations that give free professional advice to individuals experiencing problems with debt, these include Citizens Advice Scotland.

[edit] See also

• Protected Trust Deed (Scotland)
• UK insolvency law
• Enterprise Act 2002
• Debt Relief Order

[edit] External links

• British Household Indebtedness and Financial Stress: A Household -Level Picture [PDF] Quarterly Bulletin, Personal Sector Articles, Winter 2004 (Report for Bank of England)
• National Debtline Bankruptcy Information Document
• UK Bankruptcy In-depth Details
• Piggy Bankrupt - popular bankruptcy information portal

National Debtline Alternatives tro Bankruptcy

http://www.nationaldebtline.co.uk/

Alternatives to bankruptcy

Individual voluntary arrangements

An individual voluntary arrangement (IVA) is a formal arrangement to repay your creditors part of what you owe and can be a way of avoiding bankruptcy. You need to be able to raise a lump sum to pay the creditors or to make regular payments from your income to your creditors.
To arrange one you need to find an insolvency practitioner prepared to work for you. The insolvency practitioner prepares a proposal to put forward to your creditors. If the creditors who are owed 75% in value of your debts, who choose to vote, agree to accept the proposal then the IVA is put in place.

Information

An IVA will usually last for three to five years. If the arrangement is not kept to, the insolvency practitioner or your creditors can apply for a bankruptcy order to be made instead.

Insolvency practitioners’ fees can be expensive and they will usually want some payment in advance. It is worth asking them for an initial free meeting to discuss whether an IVA is appropriate.

Information

If you are interested in setting up an IVA, phone us for advice. We may be able to refer you on to an insolvency practitioner from a list of providers that have agreed to follow special guidelines (called the ‘IVA protocol’) from the Insolvency Service. We will be able to discuss an IVA with you, as well as advising you on what other options you may have for dealing with your debts.

Warning

Be careful of companies who offer to put you in touch with an insolvency practitioner for an up-front fee. You can contact an insolvency practitioner yourself without paying a fee to a third party.

Fact sheet

We have a fact sheet on ‘Individual voluntary arrangements’ which may be of assistance to you. Phone us for a copy.

Fast track individual voluntary arrangements (FTVA)

Even if you have been made bankrupt it is still possible to have a special form of IVA called a fast track individual voluntary arrangement (FTVA). If you get a FTVA it means your bankruptcy order can be reversed (or annulled). You have to put forward a payment proposal to your creditors through your official receiver that would mean they will be paid more than they would under your bankruptcy.
The official receiver runs the FTVA for you if it is set up. The FTVA is cheaper then an ordinary IVA as there are set fees and costs. If it fails then your creditors could try to make you bankrupt again.

Warning

You need to carefully weigh up the advantages and disadvantages of asking for an FTVA. Phone us for advice.

Debt relief orders

A debt relief order (DRO) is a new way of dealing with your debts. A DRO may be able to help you if you do not own your home, have assets worth less than £300 in total, and have less than £50 a month spare income to pay your creditors. Your total debts must be under £15,000.
If your DRO application is successful then most of your creditors will be unable to take action to recover your debts for 12 months. The debts are then written off after the 12 months are up.

Fact sheet

We have a fact sheet on ‘Debt relief orders’ which may be of assistance to you. Phone us for a copy.

Informal arrangements and debt management plans

If bankruptcy or an IVA are not suitable options you may be able to make informal arrangements with your creditors. Our self-help pack ‘Dealing with your debts’ goes through how to negotiate with your creditors. If you have not had a copy of our pack, phone us for advice.
If you would like an organisation to act on your behalf to negotiate affordable payments you might want to consider a free debt management plan (DMP). This is a repayment schedule for unsecured debts.

Fact sheet

We have a fact sheet on ‘Debt management plans’ which explains more about this. Phone us for a copy.

My Money Steps

My Money Steps is a secure and confidential online debt advice service that is available from the National Debtline website www.nationaldebtline.co.uk. If you would like to use My Money Steps you will need to enter some details about your circumstances, including your income and expenditure. My Money Steps can help you to work out a budget and give you personalised advice about what options you might want to consider to help you deal with your debts.

Payplan Glossary of Debt terms

http://www.payplan.com/glossary-debt-terms.php

Glossary of Debt Terms

A | B | C | D | E | F | G | H | I | J | L | O | P | R | S | T | U | V | W
Click debt term for information.
 

A

Administration Orders

Assignment

Arrears

Assets

Attachment of Benefits

Attachment of Earnings

 

B

Bailiffs

Balloon payment

Bankruptcy

 

C

Certificate of Satisfaction

Charge for Payment

Charging orders

Company Voluntary Arrangement

Contractual payments

County Court Judgment

Court Claim Form

Credit file

Creditors

 

D

Debt collection agency

Debtor

Default Notice

Deficit

Dependent

Distress

 

E

Earnings Arrestment

Equity

Ex parte (also known as 'without attendance')

 

F

Final discharge

Fraud

 

G

Guarantees

 

H

Hire Purchase

 

I

Income Payments Order

Informal Arrangement

Insolvency

Insolvency practitioner

 

J

Joint & Several Liability

 

L

Lender

Levy

Liabilities orders

Liquidation (also known as "winding-up")

 

O

Official Receiver (or Trustee in Bankruptcy)

 

P

Proof of debt form

Property restriction

Pro-Rata

Proxy

 

R

Right to Off-Set

 

S

Secured Debt

Statutory demand

Surplus Income (Available Surplus)

 

T

Time orders

Token Payments

Transactions at an Undervalue

Trustee

 

U

Unsecured Debt

 

V

Variation orders

 

W

Warrant of Arrest

Warrant of execution

Windfalls

Payplan Full and Final

http://www.payplan.com/debt-library/debt-management-full-and-final-settlements.php

Full and Final Settlements or Full & Final Offers

A full and final settlement is a partial offer of repayment to your debts. It is made under the condition that your creditors (the companies or people to whom you owe money) agree to write-off the remainder of the debt.

---

When can Payplan make a Full and Final Offer on my behalf?

If you are already a Payplan client and have been in receipt of a lump sum of money, Payplan can advise you on how to make a fair (pro-rata) payment to all of your creditors in writing.
Once we have worked out together how much you can offer for a full and final settlement for each creditor, they can be contacted with your proposal. If your creditors accept the amount, and payment is made, the debt is then settled or satisfied.

What guarantees are there of my Full and Final Offer being accepted?

Unfortunately, there are no guarantees that your Full and Final Settlement offer will be accepted by any of your creditors. As a Payplan client however, you will benefit from our experience of dealing and negotiating with creditors on your behalf.

What happens to my credit rating if my offer is accepted?

Even though you will have come to a satisfactory arrangement with your creditors, any Default Notices or court action (eg CCJs) taken against you will still remain on your credit file for 6 years from their point of entry.
However, your creditors should mark the debt as 'Satisfied', so that future searches on your credit file will show that you have dealt with your debt successfully and owe no further debt to those creditors.

Debt Advice Foundation is a registered national debt advice and education charity

http://www.debtadvicefoundation.org/

Free, confidential debt advice from a UK charity

Debt Advice Foundation is a registered national debt advice and education charity offering free, confidential support and advice to anyone worried about loans, credit and debt. Because we're a debt charity, you can be sure that the advice we provide is impartial and based solely on what is best for you.

If you have a debt problem, Debt Advice Foundation can help you understand which options are available to you and will recommend the debt solution that is right for your situation. Our aim is to help you regain control of your finances by:

• Reducing monthly repayments to an realistic and affordable level
• Stopping creditors taking enforcement action against you
• Protecting important assets such as your home

If you are struggling to keep up with credit card, loan or debt consolidation repayments, have arrears or are facing legal action from lenders as a result of being unable to repay your unsecured or secured debts, our debt helpline advisors are standing by waiting to help.

We advise on the full range of debt solutions including Bankruptcy, Debt Relief Orders, Free Debt Management Plans, IVAs, Trust Deeds, LILAs, Debt Arrangement Scheme, Administration Orders and Debt Consolidation.

If you require debt help or you need to talk to someone in confidence about your options, there's no need to wait or book an appointment, our free debt advice helpline is open Monday to Friday 8am to 8pm and Saturday 9am to 5pm on 0800 043 40 50.

Read what others have said about their debt advice helpline experiences.

For your own peace of mind you will want to know that Debt Advice Foundation is a registered debt charity (1095705) and has a consumer credit license (0628156).

The charity is a member of AdviceUK, the UK's largest support network for free, independent advice centres and all of the charity's advisors are associate members of the Institute of Money Advisors, a charitable body that aims to promote free money advice and develop professional standards.

Debt Education

As well as providing free debt advice and support to those that need help today, we also aim to prevent future debt problems through our research and financial education initiatives (Money Diaries) in UK schools.

The Money Diaries series of education guides for children has been awarded the PFEG quality mark, which shows that they have met the PFEG quality standards.

We have also launched the UK’s first dedicated Money Education Centre for children, which has been awarded PFEG’s Centre of Excellence accreditation.

Debt Advice Resources

• Budgeting
• Debt Calculator
• Money Advice
• Debt FAQs
• Benefits

Debt Solutions

• Bankruptcy
• Debt Relief Orders
• Debt Management
• IVAs
• Trust Deeds
• Administration Orders
• Debt Consolidation

Find out more about your options

Bankruptcy

All your qualifying debts are forgiven

After 12 months (typically) you are discharged from bankruptcy

The court can enforce an ‘Income Payments Order’ for a further three years

Your home is at risk

IVA

50% to 60% of debt is typically written off

Interest is frozen

Legally protects you and your home from your creditors

Lasts for 5 years and fees are payable

You will have to keep to a fixed monthly budget

Debt Management

A single, affordable monthly repayment

Some of your creditors will agree to freeze interest

It is not legally binding

Some companies charge 15% of your monthly payment

You are required to repay the debt in full

Debt Consolidation

Lower monthly repayment

Easier to manage one monthly payment

Credit rating less likely to be affected

The repayment period will increase

The total amount that you owe is likely to increase

Consumer Credit Counselling Service

http://www.cccs.co.uk/

Need debt help? Get free anonymous debt advice from the UK's leading debt charity

Free debt help is available online now with no commitment and a completely private consultation about your debt problems with CCCS Debt Remedy.

We are the UK's leading debt help charity and each year our debt counselling experience helps over 500,000 people with their debt problems, with over 100,000 on a
debt management plan.

Need free debt advice?

We consider your whole situation before recommending the best solution for your debt problems. Our free debt advice is proven and now you can complete this process online in under 20 minutes, anonymously and with no commitment by using CCCS Debt Remedy.

Non-profit debt management plans

Unlike the many debt management companies, we are a registered charity with a commitment to help you, rather than make profit from your problems. Our debt management advice is free and our plans have no fees. Find out if you qualify for a debt management plan with CCCS Debt Remedy

Credit card debt problems

If you're struggling with credit card debt we can provide you with practical advice to help you become debt free with CCCS Debt Remedy.

Debt consolidation loans

A debt consolidation loan doesn’t always resolve your debt problems. CCCS Debt Remedy considers all your debts and circumstances.

Bankruptcy help

Making yourself bankrupt is a big step to take. Before committing to bankruptcy, take free professional advice from CCCS Debt Remedy.

IVA

What is an IVA? Can you become debt free with an IVA? Find out if an Individual Voluntary Arrangement is the answer to your debt problems.

Welcome to CCCS Debt Remedy, our online debt counselling service

If you’re worried about debt, CCCS Debt Remedy will help you find the best solution. Our service is completely free, you don’t have to provide your name and all the advice you receive will be based on your situation. Once you have completed your CCCS Debt Remedy we will provide you with:

• Tailored advice from our expert debt counsellors
• A personal budget showing your income and outgoings
• Practical help to make the most of your money

All you need to do is answer a series of questions about your household, income and outgoings. It will take about 20 minutes, and if you need to you can save your information and come back to it for up to 60 days.
Please be aware that when you start CCCS Debt Remedy you are accepting the terms and conditions of the site.

Login to your account

Returning to CCCS Debt Remedy? Enter your web number in the box below and click 'Login'

What our clients say

"This is one of the most helpful and concise web applications I have ever used."
"What an amazing service. It is not always easy to call for help on the phone and the advice given to me was very private and very helpful."
"Excellent impartial service. I would be happy to recommend CCCS to anyone in a similar situation."

Legal Notices

© Consumer Credit Counselling Service 2011

Foundation for Credit Counselling (registered charity 1016630)

Alternatives to Bankruptcy (Ist doch ernst!)

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

Alternatives to bankruptcy

Individual voluntary arrangements

An individual voluntary arrangement (IVA) is a formal arrangement to repay your creditors part of what you owe and can be a way of avoiding bankruptcy. You need to be able to raise a lump sum to pay the creditors or to make regular payments from your income to your creditors.

To arrange one you need to find an insolvency practitioner prepared to work for you. The insolvency practitioner prepares a proposal to put forward to your creditors. If the creditors who are owed 75% in value of your debts, who choose to vote, agree to accept the proposal then the IVA is put in place.

Information

An IVA will usually last for three to five years. If the arrangement is not kept to, the insolvency practitioner or your creditors can apply for a bankruptcy order to be made instead.

Insolvency practitioners’ fees can be expensive and they will usually want some payment in advance. It is worth asking them for an initial free meeting to discuss whether an IVA is appropriate.

Information

If you are interested in setting up an IVA, phone us for advice. We may be able to refer you on to an insolvency practitioner from a list of providers that have agreed to follow special guidelines (called the ‘IVA protocol’) from the Insolvency Service. We will be able to discuss an IVA with you, as well as advising you on what other options you may have for dealing with your debts.

Warning

Be careful of companies who offer to put you in touch with an insolvency practitioner for an up-front fee. You can contact an insolvency practitioner yourself without paying a fee to a third party.

Fact sheet

We have a fact sheet on ‘Individual voluntary arrangements’ which may be of assistance to you. Phone us for a copy.

Fast track individual voluntary arrangements (FTVA)

Even if you have been made bankrupt it is still possible to have a special form of IVA called a fast track individual voluntary arrangement (FTVA). If you get a FTVA it means your bankruptcy order can be reversed (or annulled). You have to put forward a payment proposal to your creditors through your official receiver that would mean they will be paid more than they would under your bankruptcy.

The official receiver runs the FTVA for you if it is set up. The FTVA is cheaper then an ordinary IVA as there are set fees and costs. If it fails then your creditors could try to make you bankrupt again.

Warning

You need to carefully weigh up the advantages and disadvantages of asking for an FTVA. Phone us for advice.

Debt relief orders

A debt relief order (DRO) is a new way of dealing with your debts. A DRO may be able to help you if you do not own your home, have assets worth less than £300 in total, and have less than £50 a month spare income to pay your creditors. Your total debts must be under £15,000.

If your DRO application is successful then most of your creditors will be unable to take action to recover your debts for 12 months. The debts are then written off after the 12 months are up.

Fact sheet

We have a fact sheet on ‘Debt relief orders’ which may be of assistance to you. Phone us for a copy.

Informal arrangements and debt management plans

If bankruptcy or an IVA are not suitable options you may be able to make informal arrangements with your creditors. Our self-help pack ‘Dealing with your debts’ goes through how to negotiate with your creditors. If you have not had a copy of our pack, phone us for advice.

If you would like an organisation to act on your behalf to negotiate affordable payments you might want to consider a free debt management plan (DMP). This is a repayment schedule for unsecured debts.