If your financial situation becomes too difficult to sort out on your own, then the following options may be available to you.
For more details and for information on how to go about these, we strongly suggest you seek professional advice from the useful contacts shown on the Financial difficulties page.
This is an arrangement set up via one of the advice providers shown under Useful Contacts on the Financial difficulties page. Your budget is carefully calculated and the money you can afford to pay is then divided up fairly amongst your creditors, based on how much you owe to each.
Your adviser may also help you to negotiate having your interest frozen for a period of time to prevent your debt from increasing.
This is usually the first step you should take, and by setting a proper budget you can avoid any problems in the future.
Important information about Temporary Repayment Plans:
This is an alternative to bankruptcy and is a formal agreement to pay an agreed amount off your debts over a set period. This is not suitable for everybody and is usually only worth looking at if you have money spare each month to pay your creditors.
You will need to use an Insolvency Practitioner to set this up for you and all Insolvency Practitioners charge a fee - the average fee being £7,000.
Important information about IVA's:
You can either declare yourself bankrupt or be made bankrupt by one of the people you owe money to. Whilst you are bankrupt your assets, such as electrical equipment or your car, can be sold to pay off your debts. Your property might also be sold if you have any equity in it.
After a period of time, usually 1 year, all your outstanding debts are written off. The cost of bankruptcy is currently £450 deposit plus a £150 court fee.
Important information with bankruptcy: