Bankruptcy, IVAs and Debt Management

 
 

Clear Insolvency provide debt solutions for UK residents living here or abroad. We specialise in providing assistance to those wanting to clear their debts and file for personal bankruptcy, but can also provide suitable alternatives to bankruptcy, such as an IVA or debt management plan.

Want to Discuss Your Options?

 

Bankruptcy

If your debt has become unmanageable then bankruptcy is an effective solution immediately freeing you from debt and giving you the chance to have a fresh start.

If you haven't got any assets to protect such as a house, savings or an expensive car (over £2500) and if your occupation isn't affected, then bankruptcy may be more suitable for you than an IVA.
Following bankruptcy your creditors are not allowed to contact you for any previous debts as they are no longer your responsibility. There's no threat of bailiff action either.

You will be bankrupt for 12 months, after which you are automatically discharged and are in a position to rebuild your credit file. Much like an IVA, your credit rating will be affected in the future, but over time it will improve.

Learn more and visit the bankruptcy information section.


Individual Voluntary Arrangement (IVA)

If you are struggling to manage your debt an IVA could be suitable. In an IVA your repayments are based on what you can afford and in return the creditors will stop all interest charges and any further action against you.

If you have at least £15,000 of unsecured debt owed to three or more different creditors; but have a regular income and could afford to put at least £200 a month into an IVA, then you are in a position to be completely debt free after 5 years.

An IVA also allows your creditors to receive more money back than they would if you were to apply for a Bankruptcy Order. An IVA can also act as a safeguard to losing your home, which is particularly important if there is equity in the property, as you would lose this in bankruptcy.

Learn more and visit the IVA information section.


Debt Management Plans (DMP)

If you're struggling to keep up with your monthly repayments then a Debt Management Plan is a possible solution for you. Debt Management Plans are most effective as a short term solution and for debt amounts under £12,000, otherwise you could find yourself making repayments for many, many years.

If you know you'll be more financially stable in the near future, or you're in a position to pay off your debt if your repayments were lower, then a Debt management Plan will help ease the strain from your creditors and sort all of your repayments into one monthly repayment.
Creditors normally welcome a debt management plan as it ensures that they will regularly receive repayments from you. Maintaining your payments ensures that your creditors will not apply for your bankruptcy.

Learn more and visit the Debt Management information section.