If you are struggling with debt and are based in the United Kingdom (UK), then you have several options to help with your problem.
The type of help you can receive depends upon the amount of money you owe and the assets you have. They type of debt help you can receive in the UK also depends upon where you currently reside; Scottish residents have their own debt solutions.
There are several options to help with your debt. You can repay your debts in installments with solutions such as a debt management plan or individual voluntary arrangement. If you can’t repay your debts there are options such as a debt relief order or bankruptcy.
In Scotland there are debt arrangement schemes, protected trust deeds or sequestration that accomplish the same things.
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“Help Me With My Debts”
This is a question we hear a lot. If you are looking for help with your debts then you can talk to our our trained advisers. They are all extremely friendly and knowledgeable and no matter your problem, they have heard it all before (and helped), so don’t worry. We know it can be scary asking for help with your debts, but once you do, you won’t believe the pressure that it can remove. We are regulated by the Financial Conduct Authority (FCA), so you can be sure that you are getting the best advice, and there is completely no obligation to use any services we suggest to you, so why not just contact us and see if we can help?
Debt Help UK
- Debt Management Plan
A debt management plan (DMP) is an informal agreement between you and your creditors. We talk with your creditors and agree with them an affordable repayment rate. You simply make a monthly payment to us and we distribute the amount on an agreed pro-rata basis (the people you owe the most to, get the biggest percentage and so on proportionally). A debt management plan can only be used to repay your unsecured debts and the plan can cancelled if you don’t keep up repayment.
- Individual Voluntary Arrangement
An individual voluntary arrangement is a step between a debt management plan and bankruptcy. It is a legally binding agreement between you and your creditors to repay your debts on a monthly basis. As it’s legally binding, an individual voluntary arrangement means that your creditors must obey certain rules, including agreeing to stop chasing you for payments, so all those annoying calls and letters should stop! However, this also means that there can be serious consequences if you don’t stick to your agreed payments.
- Debt Arrangement Scheme
A debt arrangement scheme allows residents of Scotland to repay their debts in full, but over a longer time-period. It gives you a bit of space to breath as you repay at a rate you can afford. Also, all interest and charges are frozen, meaning you only pay what you actually owe.
- Protected Trust Deed
A protected trust deed is a debt help solution designed by the Scottish government to help its residents with debt troubles. A protected trust deed allows you to repay your debts at a level that you are comfortable paying. If accepted, your creditors can no longer chase you for payment, and they can’t try to push you into bankruptcy.
Sequestration is simply a word often used in Scottish law to describe bankruptcy. It’s the best known, but also (maybe because of) the harshest, form of debt help in the UK. With some severe and and long-term consequences.