Debt

What debt can be included?

The debts that can be included are called unsecured, meaning anything that is not secured against a property or motor vehicle, for example credit cards, store cards, bank overdrafts, personal loans, and utility providers such as electric, gas and telephone providing that you can source a different provider.

The Pro’s

IVA

Debt free from 3 to 60 months
Lower monthly payments taking into consideration actual debt level
Can not apply for unsecured credit for up to five years (Is this such a bad thing!)
Write off a percentage of the overall debts
Safeguards the house and the car
The responsibility of managing creditors is taken way
One monthly payment covers all creditors
Remortgaging is possible whilst in an IVA

The basic criteria for an IVA

Ideally Suited for debts over £15000
Debts spread over three different creditors
£250 minimum expendable income per month (to be calculated using IVA guidelines for Income and Expenditure fact find)

Debt Management

Lower monthly payments taking into consideration actual debt level
Safeguards the house and the car
The responsibility of managing creditors is taken way
One monthly payment covers all creditors

The basic criteria for a Debt Management Program

Ideally suited for debts between £3000 and £15000
£125 minimum expendable income per month (to be calculated using Income and Expenditure fact find)

Monthly Contribution IVA

This is where the individual offers monthly voluntary contribution payments for a period of up to five years. The amount that is offered is whatever the individual can reasonably afford, can be as little as £250 per month and will usually be substantially less than debt repayments that were previously being made. All interest and charges will be frozen during the course of the IVA, and at the end of the five year period the arrangement is concluded and the remainder of the creditors’ debts are written off.

Lump Sum Settlement IVA

An alternative to a voluntary contribution IVA, the lump sum IVA involves the payment of a one-off lump sum in full settlement of the debts. Such a proposal may be suitable where a family member is prepared to make a one-off payment that generates a higher dividend than if monthly payments were made or where there is equity in a property that can be re-mortgaged. A lump sum IVA may be attractive to creditors, as it will enable them to be paid in a matter of months rather than waiting for up to five years.

Monthly Contribution & Lump Sum IVA

Where a client may have substantial debts and could only offer a low monthly contribution in their IVA, but own their own property, Platinum Debt Solutions may be able to negotiate a lower monthly contribution with a lump sum paid towards the end of the IVA. This can be arranged by way of a re-mortgage which we can arrange for you.

Debt Management

Is an informal agreement where a client pays a more affordable payment to creditors for a period of time until the whole debt has been paid off, Interest can be frozen but the decision is down to the creditors.