There are a number of options available to debtors with personal financial difficulty:
- Individual Voluntary Arrangement (IVA)
- Debt management
- Full and final settlement
- Debt Relief Order (DRO)
Debt management is very popular with consumer debt. It is often considered to be a debt for life as there is no debt-forgiveness. Full and final settlements are useful if you have access to sufficient resources to make a reasonable offer to creditors.
For many years consolidation was popular due to the possibility or re-mortgaging. This is very difficult in the current climate.
Debt relief orders were introduced last year. It is for individuals who have debt of less that £15,000. The individual must have a monthly surplus of income over expenditure of less than £50 and must not have assets of greater than £300. AAA This is an inexpensive debt solution as the fee payable by the debtor is only £90.