3 step process to take control of your debts
Alex, my advisor, was so kind and helpful, she informed of everything I need to know in detail and help me to take the right decision in order to get debt free.
Professional and extremely helpful I couldn’t fault the service I received from my advisor.
The whole process went along smoothly and now am ling with less stress and have total control over my finances
I dealt with the same adviser until my case had been finalised. I was very nervous about dealing with my debt, Connor made me feel at ease and was very easy to communicate with.
Absolutely fabulous company, I delt with Chris who talked me through everything step by step, please if anyone is struggling get in contact with these guys 10/10
Everyone who I’ve spoke to and asked questions has been polite and took the time to explain every last detail to me, what you guys do is really life changing, Thank you again.
To find out more about managing your money and get free debt advice, visit Money Advice Service
Frequently Asked Questions
Will my interest and charges get frozen?
Depending on which solution(s) you qualify for, they may include benefits such as guarantees to freeze interest and charges. If you qualify for these solutions you will have them explained to you in full, including their advantages and disadvantages and any costs or fees so you have a balanced and thorough understanding of the solutions you qualify for. You can then make your own informed decision on how you would like to proceed. Everybody’s individual circumstances are different, so get in touch today for free, no obligation support and advice.
Is it really this simple what's the catch?
There is no catch but dealing with debt means you have to budget. For a solution to succeed in clearing your debt you must make sure that you don’t promise to pay more than you can realistically afford. You might be surprised to learn that your creditors are likely to agree to accept less than you expected once they understand you are taking advice and action to sort your debts out.
Would I qualify if on a low income?
All we can do is see. We understand that everybody has different circumstances, which is why we encourage you to always get in touch and let us know your story. Let us see if we can help. We will focus on what you can actually afford rather than what your creditors are demanding. Most people qualify for at least one form of debt help and you will always be given information on whatever you qualify for, including debt solutions which may result in your debts being written off completely.
Would my lenders accept less than I owe?
We will recommend to you the amount you should offer to your creditors. Your creditors are obliged to allow you to keep enough of your income so that you have a reasonable standard of living. We will advise you how much you should offer as a fair payment towards your debts while making sure you keep enough of your income to cover payment of your living expenses. Even though this may mean that your creditors will end up receiving less than you owe them, your creditors are still likely to accept the payment offer we recommend.
What about my assets etc?
Most debt solutions will allow you to keep your assets; in fact some even protect them! If you become bankrupt most of your assets will be automatically transferred to the Official Receiver. You will be allowed to keep household furniture and equipment and your car provided it is not worth more than £1,000. If you are a homeowner your interest in your house, i.e. the amount you would expect to receive after payment of your mortgage and the costs of sale will be transferred to the Official Receiver. A Debt Expert can help you by explaining the advantages and disadvantages of the various solutions so that you can choose the solution that is best for your individual circumstances
What is an IVA?
An IVA- Individual Voluntary Arrangement is a legal agreement that allows you to repay only what you can reasonably afford to your creditors over a pre-determined period of time – typically around five years. These payments are made in monthly sums and are split between your creditors after paying the costs of the IVA.
As a formal insolvency solution and an alternative to bankruptcy, every IVA is established and overseen by a Licensed Insolvency Practitioner – who acts as the mediator between you and your creditors.
What options do I have?
Debt Management Plan (DMP)
Available to residents of the UK
- Have just one monthly payment as little as £75 for all your debts
- Pay only what you can afford
- Your credit file may be affected for up to 6 years
- Cannot help with secured or current household debt (gas, water, etc)
- Will last until debts are repaid in full
- Not legally binding
Paying less over a longer period of time may increase the total amount repayable and also interest and charges may not be frozen
Individual Voluntary Arrangement (IVA)
England, Wales and NI customers
- Write off up to 85% of your debt
- Unsecured debts included within in the IVA will be written off at the end of the agreement
- Stops letters and collection calls
- Consolidate all debts into 1 payment
- Your details will be recorded on the insolvency register
- Homeowners may need to release equity from their homes
- Failure to comply with the IVA terms may lead to bankruptcy
- Your credit file may be affected for up to 6 years
- Expenditure may be restricted
Subject to creditor approval
Protected Trust Deed
Scottish residents only
- Consolidate your debt into one monthly payment
- Have a fixed term, usually 4 years
- Write off all your remaining unsecured debts that were included in the Trust Deed, at the end of the term
- PTDs are listed on the public insolvency register
- Your credit file may be affected for up to 6 years
- Homeowners may need to release equity from their homes
- Failure to pay the Trust Deed could result in further action being taken like Bankruptcy
- Expenditure may be restricted
Subject to creditor approval
Equity Release
- Release tax-free cash from your home to pay down your debt
- Take the money in a lump sum or over several smaller payments
- Must be 55 or older to qualify
- You will be required to pay set up and/or arrangement fees
- May be early repayment charges
- Equity release is expensive
- May hurt your ability to save enough money for retirement
Bankruptcy
- Get a fresh financial start
- Be debt free in just 12 months
- You may need to give up assets including your home & car
- Income in excess of that needed for basic needs is paid to your lenders
- Your bank accounts will be frozen
- Can affect current and future employment
- You may have difficulty obtaining credit in the future
Debt Relief Order
England Wales and Northern Ireland
- Debts frozen for 12 months and then 100% written off if you can’t afford to pay them.
- Low cost alternative to bankruptcy
- Stops letters and collection calls
- Only available if you owe less than £20,000 and have minimal assets
- Not available to homeowners
- The DRO will be recorded on a public register
- Your credit rating may be affected for up to 6 years
Who is UK Debt Advisory?
UK Debt Advisory is a trading style of Adams Pickard Limited also trading as Bennett Jones Insolvency. We specialise in providing and administering Individual Voluntary Arrangements (“IVAs”) for people from England, Wales and Northern Ireland. We do not administer Debt Management Plans, Debt Relief Orders, or other debt solutions. To qualify for debt write off in an IVA with Bennett Jones Insolvency you must have a minimum of £6,000 of qualifying unsecured debt owed to 2 or more creditors.
Do I pay a fee?
Fees are payable for IVAs These fees are included in the affordable monthly amount you pay. All fees are fully explained at the outset and during qualifying periods. You will be given all the information on fees so that you can make an informed decision before you proceed.
Example of typical debt solution & fees*
Monthly Payment – £149, Number of monthly payments – 60, Total repaid by you – £8,940, Nominee’s Fee – £1,900, Supervisor’s Fee – £1,750, Total paid to Creditors – £5,290, Total debt level included – £21,105, Total debts written off – £15,815 (74.94% of total debts).
*Figures are based on IVA’s approved by Bennett Jones Insolvency in the last 12 months
How much do I have to pay per month?
A Debt Counsellor will help you determine this. When convenient we will review your income and your expenditure together. We will assess a fair and realistic amount you can afford after making sure you can pay priority bills like rent, gas, council tax etc. Then we will review what you pay towards normal everyday costs. Once we have done that we will be able to see what’s available to pay to your creditors. We will always aim to make sure you have a reasonable standard of living. This means we will never recommend that you pay an amount you couldn’t afford or sustain, which could later result in problems such as stress because you missed payments. More often than not we are able to arrange a payment, which is a lot more affordable for you than you may have previously thought possible.