Debt Solutions
How We Help
There’s no need to feel alone in this. We direct you to debt management solution providers with solutions tailored to you and your situation Contact the DH Finance Ltd team today.
Individual Voluntary Arrangement (IVA)
IVA works in two ways. You can choose to pay monthly amounts based on what you can afford, or you can opt to pay back what you owe in a lump sum (no set up fees to be paid before your IVA is agreed).
Benefits
- Pay monthly amounts based on what you can afford.
- Your remaining debts get written off after making you final payment.
- Interest, charges and debt collection stop meaning the amount you owe stops increasing.
- Your insolvency practitioner deals with creditors on your behalf and creditors included in the IVA cannot take legal action against you.
Risks Of IVA
- Your creditors could request that you reduce your living costs.
- You could have to sell any valuable assets.
- If you own any property, you may have to remortgage to pay the lump sum into the IVA.
-The IVA will be recorded on a public register and has an impact on your credit file.
Debt Relief Order (DRO)
This is a way of cancelling your current debts if they do not improve within 12 months. During this, any interest and charges will stop being added to your debts and you will not pay back what you owe and you won't need to deal with the people that you owe money to. You must meet the minimum eligibility criteria for a DRO, find out more here: https://www.gov.uk/guidance/how-to-get-a-debt-relief-order-dro
Benefits
- Any collections activity to those who you owe money to will stop.
- Your debts will be cancelled after 12 months.
- Interest charges will be cancelled, but can be added back on if your DRO fails.
- Your intermediary will deal with your application for you, meaning you don't have to go to court.
- You can keep your household goods.
Risks Of DRO
- This is kept on a public register for 15 months.
- If you're looking to get credit in the future, this could make it harder as it stays on your credit file for 6 years.
- If your financials get better during the moratorium period, this could result in your DRO getting cancelled. This last for 12 months and the people you owe money to could ask you to pay back the charges you owe including interest.
- If you break the rules of your DRO, it could be cancelled.
A one-off administration fee of £90 must be paid for a DRO.
Bankruptcy
This is a legal process that cancels most of your debts. It essentially gives you a fresh start, and you won't need to deal directly with whoever you owe money to.
Benefits
- Debt collection, interest and charges will stop.
- Debts can be written off after 12 months.
- You could be eligible to keep essential household goods.
Risks Of Bankruptcy
- Your assets such as your home or car may need to be sold.
- Monthly payments could be taken for 3 years, this will only be what you can afford.
- Whilst you've filed for bankruptcy you will find it hard to get credit.
- This will be on the public register and your credit file for 6 years.
- Your bankruptcy could be extended.
- It could affect your job.
A bankruptcy application costs £680.
Debt Arrangement Scheme (DAS) - Scotland only
In a DAS you only pay back what you owe based on what you can afford. The people you owe money to cannot take legal action against you during this time.
Benefits
- You make a single monthly payment to us which we use to pay the people you owe money to.
- We don't charge you fees, all payment go to the people you owe money to.
- The people you owe money to have to stop adding interest to your debts.
- Your debt payments will be reduced, making it easier to cover essential living costs.
- You will keep any assets including valuable items such as savings, vehicles and property.
Risks Of DPP
- It will take you longer to repay what you owe than if you were making contractual payments.
Protected Trust Deed (PTD) - Scotland only
If you owe more than £5000, a PTD can offer a fresh start. This is a formal agreement between you and your creditors. You pay what you can towards your debts, and once complete the rest of your debt is written off.
Benefits
- You pay single monthly payments based on what you can afford.
- Interest and any other charges are stopped once your PTD is accepted.
- PTD includes most non-priority or unsecured debts such as student loans and fines.
- Once your final payment is made, the rest of your debts get written off.
Risks Of PTD
- PTD is kept on the public register of insolvencies for at least 5 years.
- This stays on your credit file for 6 years.
- It could be harder to get credit.
- You may be asked to sell any assets over £1000.
- If property is owned, you might need to pay equity towards your debts.
- Items that are on hire purchase agreements can be affected meaning you may need to return them.
Sequestration (Bankruptcy)
This is a legal process that writes off your debts meaning you won't pay them back.
Benefits
- Interest and other charges stop.
- Debt collections stop.
- Debts are usually written off.
- There is no court action.
- We take care of everything for you.
- You keep your essential household goods.
Risks Of PTD
- You may need to sell assets like your home or property.
- You could be paying monthly for 4 years.
- Bankruptcy is on the public register of insolvencies for at least 5 years.
- This will show on your credit file for 6 years.
- It could impact your job.
- You'll have restrictions when borrowing.
- It can affect a rental agreement.
Minimal Asset Process (MAP) - Scotland only
This is aimed at people with low income with a small amount of assets. This is a cheap and straightforward process.
Benefits
- You will not need to appear in court.
- There is no fee to apply for MAP bankruptcy.
- This process is usually complete within 6 months, after this most debts will be legally written off.
- Once this approved your creditors can't chase you for any payments or add further charges during this process.
- Most unsecured debts are included in MAP bankruptcy.
Risks Of MAP
- Your credit rating will be affected for 6 years.
- Your bank are likely to close or freeze your accounts, meaning you may only get access to your basic bank account.
- This can affect your job.
- Some landlords may evict tenants or refuse to renew a tenancy agreement.
- Certain debts like student loans, child support and court fines aren't included.
- If you're self employed, this could make it harder for you to obtain credit for any goods and services.
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Suite 345, 50 Wellington Street, GLASGOW G2 6HJ
0141 264 2502