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Wave Goodbye to
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Insolvent? What are the options?? You may have had business problems, redundancy, illness, divorce. Perhaps the credit cards ran away with you or the easy loans proved to be a bit too easy. Either way you've joined the millions of others struggling to pay their debts, or facing insolvency, so what is the best way out? The possible solutions are:
All these options have both benefits and drawbacks. Very briefly: 1) Ignore the problem. Your creditors are likely to hound you, interest charges and costs could rise, you may lose control and be forced into a solution which is not in your best interests. We will say no more about this option! 2) Debt Management. This is an informal arrangement under which an intermediary negotiates with your creditors on your behalf and tries to reach agreement on a number of options which may include a longer repayment period, reduction of the sum owed, a freeze on interest and an end to legal action. More about debt management.... 3) Individual Voluntary Arrangements (IVAs). This is a legally binding contract under which your creditors agree to accept repayments at a level that you can reasonably afford to pay for five years, after which the remainder of the debts are written off. You can apply for an IVA if your debts exceed £15,000, you are struggling to pay, you have three or more creditors and certain other conditions apply. More about IVAs... 4) Bankruptcy. As a bankrupt you would be legally declared unable to repay your debts and you would be ordered to co-operate with a trustee who would have the right to sell all your assets excluding certain protected ones such as tools of your trade, a reasonable quantity of clothing, a bed to sleep in etc. After a year at least you could be discharged and all your existing debts written off. More about bankruptcy... 5) Debt consolidation. This is an option which is usually only open to someone who owns a house and has sufficient equity in it to raise a long term loan in order to pay off a number of smaller ones. More about debt consolidation...
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You may be able to save some money by buying short term car insurance instead of paying out for a whole year or get no deposit car insurance |
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