FAQ’s (Frequently Asked Questions) About Debt?
Here are some frequently asked questions about debt, if you have a question that is not listed below, feel free to contact us either via email or phone, or the contact form.
Yes. There are other debt solutions for people with that level of debt, a debt management plan (DMP) may or may not be one of them or there may be other debt solutions more appropriate for you, get in touch with us to find more information about how we may be able to help you.
You can contact us for a free debt assessment to see if you are suitable for either an IVA or A DMP (Debt management plan), all contact with us is no obligation and we are here to offer free debt advice to people in need. There is no fee for our advice.
An IVA is a more formal debt solution that is legally binding on all parties (including the creditor(s)), a DMP (Debt management plan) is an informal solution which consolidates monthly repayments but doesn’t legally bind the creditor or the debtor, both are effective solutions but there are certain debts that can only be put in an IVA.
An IVA has more legal protections and power to protect you from creditor and bailiff hassle and CCJs and a wider range of debt can be included in an IVA.
Your monthly bills are consolidated and you make a commitment to your creditors of a monthly repayment that is affordable.
You make every effort to keep to the repayment schedule and notify your debt manager if you run into difficulties.
Your debts are managed by a debt specialist who deals with your creditors on your behalf
The best way to find out in this instance is to contact us for a free debt assessment, for an IVA you need a minimum of £5,000 and two creditors, however we still may have a solution for you if your debt level is lower. Contact us for a free assessment.
Not necessarily but there must be a form of income, this can be benefits, and generally a minimum disposable income of £100 per month.
YES. An IVA can stop bailiff visits, calls and general hassle stop, any liaison with the bailiffs once on an IVA is handled by the Appointed Representative, there is no requirement for the person in debt (debtor) to handle contact with the bailiffs.
YES. On an IVA you have what we can an appointed representative who deals with all communication between you and the people you owe money to so you don’t have to.
This is fully managed on your behalf.
A “Credit report” is a credit reference record of your previous activity during the last 5 years, so items older than five years are naturally removed from your credit report as part of the normal course of proceedings.
Technically yes but only because you would be making reduced payments towards debt at a rate at which you can afford, but if you were not on a DMP or an IVA there would usually be issues making payments towards debts anyway, so usually if anything the credit file in the longer term would benefit due to the debts, being resolved or at least action taken to make contributions towards paying it off.
It would be misleading to say the IVA or the Debt management plan hurt your credit file.
There is no maximum amount of debt that can be placed in an IVA, people have used Individual voluntary arrangements (IVAs) to clear away debts in excess of £250,000. There is no upper debt limitation, however for an IVA you need at least £5,000 of debt.
For people with less debt you may wish to consider a DMP (Debt management plan) or other debt solutions, contact us to find out more about these.
YES. Just contact us for a free debt assessment and we would be happy to help you with any queries and explain it to you and how it may be able to help you with your situation.