The main solutions
Debt Management is a potential financial solution that could allow you to reduce your current monthly payments to your unsecured creditors to a more affordable amount without having to borrow more money.
A client can enter into a debt management programme immediately.
Individual Voluntary Arrangement (IVA)
If the client has 3 or more creditors and owes more than £15,000 in unsecured debt, it is likely that this solution may be the most suitable for the circumstances. In addition, the client must be employed or self employed (able to prove income) and have surplus income of £275 per month after taking into account all expenses. An IVA is a legally binding agreement and normally runs up to 60 months. The IVA is managed by an Insolvency Practitioner who needs to obtain agreement from a minimum of 75% of the creditors before proceeding.
Full and final settlement