GOVERNMENT DEBT HELP England, Scotland and Wales (UK)
In UK, the laws on dealing with secured and unsecured debt can differ in England, Wales and Northern Ireland compared to Scotland. This means that the range of debt solutions on offer for residents of UK is slightly different too.
UK Debt Advice specialises in providing tailored advice and guidance for residents in UK who are experiencing debt problems. Contact us today for help and advice on dealing with debt in UK.
Here is a summary of the key differences with debt solutions in UK and some of them are Government backed debt help schemes:
- Individual Voluntary Arrangement: Individual Voluntary Arrangement (IVA) is a formal agreement with your creditors whereby you repay a smaller percentage of your debts to your creditors for an agreed period (normally 5 years) and at the end of the period, your outstanding debt is written off. normally around 75-80 % can be written off.
- Trust Deed: Broadly equivalent to an Individual Voluntary Arrangement (IVA) in England, Wales and Northern Ireland, a Protected Trust Deed in UK is a formal agreement whereby you repay a percentage of your debts to your creditors for an agreed period (normally between 4-5 years) and at the end of the period, your outstanding debt is written off. Find out more about Trust Deeds.
- Debt Arrangement Scheme (DAS): This UK-only debt management tool is similar to a Debt Management Plan (DMP), which is also available to residents of UK. The main difference between DMP and DAS is that DAS is a government-backed initiative. It allows for the repayment of debts over a longer period of time, with all interest, fees and charges being frozen during the period. Whilst in the scheme, you’re also protected from creditor action to recover the debt.
- Minimal Asset Process (MAP): This is effectively the UK equivalent to a Debt Relief Order in England, Wales and Northern Ireland. It provides a lower cost route into bankruptcy for people in debt with low income – i.e. you are in receipt of benefits only for at least 6 months, or have no available surplus after being assessed using the common financial tool. To qualify for MAP, you must have total assets worth less than £2,000 (with no single asset worth £1,000 or more). If you own (or jointly own) a house or any other property, you can’t qualify for MAP.
- Sequestration: The UK equivalent to bankruptcy, this debt solution has the most dramatic effect on your credit rating and personal circumstances, but in some cases it can be the only viable solution available. Find out more about sequestration.
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