Lose The Debt - Reach for the Horizon | 01908 225727 | info@bluehorizonsgroup.co.uk 

Debt Management 

There are many debt solving options available and it our intent to offer all of them if the situation allows. Some of the options that we offer include the following: 
A Debt Management Plan is an informal agreement between the creditors and you. They can reduce your unsecured debts, debts which are NOT secured against homes or assets, at a reduced amount over a period of time which will enable you to take back control of your finances. 
Debt Management Plans are set up for each individual and is based on what can actually be afforded on a monthly arrangement. Normally an updated income and expenditure amount will be taken to show where monies are currently being spent. The idea will be to establish a disposable income, the amount left over when all commitments have been made, in order to make an arrangement with your creditors. 
Your Debt Management Company will assume control over your debts and manage any correspondence and/or phone calls to ensure the debt is repaid and you are no longer being harassed by your creditors. 
This is a completely informal arrangement and means you can change it any time. We also have a further option regarding Debt Management Plans – ask our consultants for details. 
Individual Voluntary Arrangement or IVA for short is basically a formal debt Management Plan 
To arrange one of these it has to be done by an Insolvency Practitioner (IP), which is a form of debt solicitor. Two thirds of your creditors have to agree for you to be accepted on this arrangement. Normally this has to be a minimum payment, although it could be higher based on the amounts you owe. 
Subject to acceptance the IVA would be in place for 60 months (5 years). However it is recorded on your credit file for 6 years and if you default on your payments its possible you could be made bankrupt, however if you complete the arrangement the remainder of any debts would be written off. 
Bankruptcy has been ‘fashionable’ in recent years however it is really only if your debts are extreme and should not be taken likely. Bankruptcy allows you to effectively press the reset button and stop the situation from getting on top of you. 
Again the Bankruptcy is actioned by an Insolvency Practitioner (IP) the paperwork involved in this is very in-depth and you will be asked everything from the basics of your name and address to your assets, income and expenditure. (About 40 pages in all). 
When the Bankruptcy paperwork goes to court to be actioned, it will take about half hour to be agreed and from that point your debts will be written off and you can start again. However you will need to inform anyone you require financial assistance of your Bankruptcy, such as when applying for a new bank account or credit arrangement. It will normally be cleared in 6-12 months but be on your credit file for 6 years. 
Bankruptcy is really a no choice option. If your debts are extreme then this may be your only option, however you may be surprised at what we can do before you go down this route. Talk to one of our consultants first. 
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