Get help with debt recovery in the UK

Dealing with debt recovery in the UK can be assisted by a debt management company. There are many reasons why you may need to use debt recovery. You may find that you need to get recover from being in debt due to a short term reduction in salary, redundancy, or other loss of earnings. There are numerous debt management companies available that will provide you with assistance on a debt repayment plan.

You can consider various options if you find yourself struggling to pay back your unsecured debt.

For some people bankruptcyis the only option. You can be made bankrupt voluntarily or involuntarily by the banks or people who you owe money. Your debts become the responsibility of a trustee. After a year, your debts are written off. This might sound useful but bankruptcy means you will have no assets. As a result of filing for bankruptcy, your bankruptcy will be advertised, and you will not be able to run a business. Fees and charges associated with bankruptcy are higher than other forms of debt management solutions.

There are many advertisements on television for IVAs. An IVA is an Individual Voluntary Arrangement, which is a legal agreement you enter with at least 75% of your creditors. With an IVA, you make plans to settle your debt within five years. The benefit of an IVA is that all interest and debt charges are frozen. You still have to make monthly payments, which are normally at least £200 per month, and will likely be a lot lower than your current debt payments. Any debt leftover will be written off once you make your final debt payment. You may be able to get rid of up to 70% of your debt. Your IVA will prevent legal action being taken against you, and any CCJs will be cancelled.

Some debt management companies may be able to negotiate to reduce your debt without an IVA. Alternatively, you may be able to take out one loan and consolidate all your debt into one payment.

Dealing with debt does not have to be difficult, but you have to begin the process as soon as you realise you are going to have problems with paying your debt repayments.

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