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If you are struggling with your debts and have no way of paying them back, then you might qualify for a Debt Relief Order.
As a UK resident you have the right to debt relief through a variety of solutions and you could be eligible to write off part of what you owe.
A Debt Relief Order is a legally binding solution that allows you to stop making debt repayments and is designed to be an alternative to bankruptcy.
With a DRO you do not need to make any payments to your lenders for 12 months, and the debt within your DRO is usually written off after the 12 months if your situation doesn’t improve.
After our initial debt assessment, if an IVA is not a viable option for you, but it looks like you might qualify for a DRO, then we can refer you to our partner company who are an approved DRO assessor and can make all the arrangements for you.
Credit Score Pop Up Wording : An Individual Voluntary Arrangement (IVA) is a formal agreement with creditors to repay a portion of your debts over time, but it does have an impact on your credit score and it will be difficult to obtain further credit whilst on an IVA. Once an IVA is approved, it is recorded on your credit report and will typically remain there for six years from the date it starts.
However, it’s important to note this is the case for most debt solutions and your credit score will likely already have been affected by being in debt in the first place.
Once your IVA is complete you will get a fresh start to begin rebuilding your credit rating.
IVA costs are charged for the preparation of your proposal and the administration of the arrangement for the full term (usually 5 years) these costs are charged from the monthly contributions you make into the IVA and are not in addition. Costs will only be recovered on approval of your arrangement and once you commence making payments to it. The fees for preparation of the proposal to creditors and calling the meeting for creditors to vote on its approval are called nominees fees, the fees for running the arrangement once approved are called supervisors fees. There are also some expenses incurred in the running of the arrangement such as the registration fee and the statutory insurance that needs to be taken by law, these are called disbursements. For our arrangements, the total of all of these is £3,650 although this may be adjusted by creditors when they vote on whether to accept. No matter what the end total of costs come to, you can be rest assured that these will be taken from the monthly payment we agree with you.
For free, independent advice, you should visit to Money Helper via their 