If you are struggling with debt problems, it is important to be aware of all the different options that could help you. Altion Law will set out alternative solutions available and we are happy to provide advice which is the most suitable for your situation.
Before choosing the best solution for you, you should consider finding out more about other alternatives before considering bankruptcy route. You may need to consider the advantages and risks for each option before making the decision.
1. Debtor’s Petition - you can apply online to make yourself bankrupt if you cannot pay your debts.
2. Getting a Debt Management Plan - which is an informal agreement between you and your creditors whereby you agree to repay your debt in reduced payments that are affordable to you managed by a financial company.
3. Debt Relief Order - granted by the Insolvency Service if you cannot pay your debts, total debts are less than £20,000; total assets are worth less then £1,000 with £50 or less spare income each month. Most debts are written off after 12 months.
4. An Administration Order - legally binding administrative arrangement between you and your creditors approved by a county court that enables you to pay only what you can afford each month towards your debts which is not more than £5,000 in total.
5. An Individual Voluntary Arrangement - is legally binding agreement between you and your creditors to pay back your debts over a period of time which is managed by an Insolvency Practitioner. This involves making a formal, legally binding payment arrangement with you and your creditors. It has to be approved by the court and the creditors have to adhere to the arrangement which is managed by the Insolvency Practitioner. It offers flexibility and allows you to pay towards your debt every month over a fixed period of time. You will not lose your home or job. You would need to seek legal advice to explore if this arrangement is right for you or consider other alternatives.