There are debt solutions which can give you legal protection from your creditors, giving you peace of mind and a legal solution to debt problems. These debt solutions have positives and negatives, but at Debt Support Trust debt charity we're here to help you.
When debts seem impossible to repay, or the cost of simply maintaining the interest payments is overbearing then it's best to look at debt solutions. There are formal and informal options available. An informal arrangement offers no guaranteed legal protection from your creditors, but can help get the situation back under control. Formal debt solutions guarantee to protect you from your creditors if they accept the proposal.
If you would like to discuss your debt situation with a qualified advisor then Debt Support Trust can help. You can call on 0800 085 0226 or complete our debt analyser.
Legal Protection via a Debt Solution
There are debt solutions which can give you legal protection from your creditors, meaning they can't continue to telephone you or demand payment. All of the debt solutions which enable you to gain protection from your creditors will also write off the debt you can't afford to repay at the end of the solution, along with interest and charges.
The debt solutions which best help you to become debt free and give you protection from your creditors are an IVA, Trust Deed Scotland and bankruptcy.
The highlights of each solution are:
IVA: Typically a 5 year solution, the IVA allows you to pay one amount to one company and freezes interest and charges. Debt which is not repaid after the 5 years is written off.
Trust Deed: The Trust Deed debt solution lasts 4 years usually. You make an affordable monthly payment and stop all other payments to your creditors. Your interest and charges are cleared at the end of the solution along with any remaining debt you have not repaid.
Bankruptcy: There are various routes to enter bankruptcy throughout the UK but they all mean you gain protection from your creditors and become debt free again.
These debt solutions enable you to put a proposal to your creditors, which is often accepted. The negative is that your credit file will have a default added, lasting for 6 years.
What You Shouldn't Do
When you're in debt there are some top tips to deal with the debt. Our top debt advice
You should not:
- Bury your head in the sand. By avoiding the debt problem you are delaying the process and will be in debt for longer than necessary.
- Enter a solution without getting advice. You could be suitable for two or three debt solutions so get advice to ensure you're making the right decision.
- Enter a solution without being aware what will happen to your assets. If you own your house, or have a mortgage on the property, you may wish to avoid some debt solutions as it could impact on your house.
You can call Debt Support Trust for advice on your debt problem by calling 0800 085 0226 or via our debt analyser form.