FAQs

Here you can find answers to the most frequently asked questions we receive:

IVA:

Will I lose my house?
Under an IVA you cannot be forced to sell your property and therefore your home will not be at risk.

Will interest on my debts be frozen?
Yes, an IVA freezes all interest and stops charges on your debt.

How long will it take to become debt free?
An IVA agreement guarantees you to be debt free within 60 months. After this time, all remaining debt is written-off or considered settled. Depending on your circumstances, you could be debt free even quicker.

What type of debts can be included in an IVA?
The type of creditors that can be included are: banks, finance companies, credit card companies, store card companies and the Inland Revenue. Mortgages and loans secured on your property cannot be included.

Trust Deed:

Will interest on my debts be frozen?
No, however any interest payments are included in the ‘agreed’ monthly payment and after 36 months any existing debt is written-off.

How long will it take to become debt free?
A Trust Deed agreement guarantees you to be debt free within 36 months.

What is a Protected Trust Deed?
‘Protecting’ a Trust Deed means that no further action can be taken against you by your creditors for recovery of the money you owe them. Lenders have to accept the balance of your Trust Fund account as full and final settlement at the end of the three year period.

What type of debts can be included in a Trust Deed?
The type of creditors that can be included are: banks, finance companies, credit card companies, store card companies and the Inland Revenue. Mortgages and loans secured on your property cannot be included.

Debt Management Plan:

Will I lose my house?
Under a Debt Management Plan you cannot be forced to sell your property and therefore your home will not be at risk.

Will interest on my debts be frozen?
This is down to negotiation between the debt advisor and the individual creditors. Interest can generally be lowered or frozen if you agree to pay your debts within a specific timescale.

What type of debts can be included in a Debt Management Plan?
The type of creditors that can be included are: banks, finance companies, credit card companies, store card companies and the Inland Revenue. Mortgages and loans secured on your property cannot be included.

Please explain the jargon?

Creditor – Someone whom you owe money to, i.e. bank or credit card company.

Debtor – Someone who owes money.

Individual Voluntary Arrangement – See IVA.

Insolvency Practitioner – See IP.

IP – A person specialising in formal insolvency cases. Required when entering into an IVA.

IVA – Legally-binding agreement with creditors to pay off an agreed amount of debt over a set time period.

Protected Trust Deed – A way of ‘Protecting’ a Trust Deed ensuring that no further action can be taken against you by your creditors for recovery of the money you owe them.

Secured Loan – A loan secured against a property or goods – These are normally exempt from any debt management scheme.

Trust Deed - Scotland only. A formal arrangement based on a proposal by a debtor to their creditors to clear their debt.

Unsecured Loan – A loan that is not secured on any property or goods.

For any other questions, please complete our contact form for a no-obligation call from our debt advisors.