Debt Advice
Deciding upon the most appropriate debt solution depends on how the debts arose, their size, what you earn and many other circumstances. It is essential to get good, impartial advice before taking any decisions.
Because we do not depend upon creditors for funding, and because we do not have to 'sell' a certain number of solutions each month, you can be sure that any advice is based on your own needs, not on creditors' targets.
Don't Live with Debt – Eliminate it
As an organisation, we are independent and so able to do whatever is most likely to solve debt problems for each individual. In general, an IVA will prove the best choice for people with serious debt problems. This is because an IVA has guaranteed interest forgiveness and debt forgiveness built in by law.
Our advisors are here to give you the best possible advice on how to move forward with your life and achieve financial stability. Call us today for free and impartial advice or complete our call back form to arrange for one of our advisors to call you directly.
Debt Relief Order (DRO)
This is an order granted by an official receiver. The purpose of the order is to help insolvent individuals become free of debt after just one year.
Who may be eligible for a DRO?
You may apply via an approved intermediary, usually online, if you meet the following criteria:
· You owe under £15,000
· You do not have an interest in any property
· You are unable to meet debt payments and have a monthly surplus income under £50
· Your assets do not exceed £300 (including any pension contributions made)
· Your vehicle worth less than £1,000
Benefits
· Your debt will be cleared after one year.
· Your creditors cannot take further action without a court’s permission.
· The fee is £90 which is less than the cost of filing for bankruptcy.
Draw-backs
· You will not be eligible if you are a homeowner even if there is no equity.
· Your employment could be affected depending on the nature of your job.
· Certain debts cannot be written off (such as student loans and fines).
County Court Administration Order (CCAO)
A County Court Administration Order is constructed by the court. Under the order you make payments from your income and the court will distribute the funds between your creditors.
Who may be eligible for a CCAO?
You may be eligible if you owe no more than £5,000, your debt is against at least two creditors and you have had a court judgment entered against you (e.g. CCJ).
Benefits
· Creditors listed on the order cannot take further action without the consent of the court.
· The court will distribute payments for you.
· Interest and charges are stopped.
· If your circumstances worsen you can apply to the court to make reduced payments.
Draw-backs
· Creditors could object and those who do can be excluded from the order.
· If you don't keep up with repayments the order can be withdrawn and creditors can pursue you again.
· If the court makes an Attachment of Earnings Order for them to collect payments from your income, your employer will be made aware of your circumstances.
For more information contact your local county court.
