Is It Time To Change Your Lifestyle
By Putting Your Financial Affairs in Order?
So our message is, be careful, seek a positive solution and
ACT NOW
Putting your affairs in order is like giving up cigarettes. there is a solution, but you also have to have the will power to see it through as it can be difficult at times.
Further borrowing is not always the answer, however it can be a short term solution in some cases so therefore one has to think carefully of how
to resolve their financial problem, be it mortgage arrears or overstretched credit cards, there are many issues that can put pressure on
individuals and families.
mortgage arrears inevitably leads to repossession of ones home, however there are actions that one might take to avoid such action being taken.
Firstly, contact with your mortgage provider is essential in that they may assist.
"Helpful Hints"
One could request a holiday period from mortgage payments, if such an agreement can be reached with the mortgage provider then interest and payments would be added to the overall mortgage and as such mortgage payments would resume after the specified agreed period. This in itself gives breathing space to resolve personal Debts issues.
One could request that any mortgage arrears could be appendixes to the current mortgage, this would increase the overall mortgage, and however, there would be an adjustment in the monthly mortgage payment.
One could request if on a capital repayment program the mortgage is rescheduled to an interest only payment, this will reduce the monthly mortgage payments, however one should tread with caution as the capital will not be reducing in this period.
Should your mortgage provider not facilitate you in respect of arrears then you have the option through your own solicitor to go to the court to seek a remedy covering the mortgage arrears, this may be by a payment along with the monthly mortgage payment thus reducing the arrears.
For more information or assistance on this matter, e-mail your question to apply@debtdirectltd.com or call the Phone number.
Should you find yourself with a repossession notice for mortgage arrears, then action must be taken immediately. The above steps may assist, however you do have the right to go to court if your solicitor can make a case that you can afford your mortgage and pay a little towards the mortgage arrears.
Courts are very aware of people losing homes and will give great consideration before awarding a repossession notice.
You could also through your solicitor apply for a period of time to either satisfy the arrears or sell the property independently leaving you in control.
For more information or assistance on this matter, e-mail your question to apply@debtdirectltd.com or call the Phone number.
Debt Direct Ltd was formed to assist people with everyday Debt problems and we receive numerous questions on a daily basis for which we try to give an understandable answer.
Taking control of your life
We all have choices in life and at Debt Direct Ltd we are finding that Debts falls into numerous categories from mortgage arrears, to Debt default and repossession.
Debt itself is better understood if we can break down approximate value of indebtedness.
e.g. If one has Debts under £5,000 and a CCJ (County Court Judgment) they can apply to the local court for an administration order, similar to an IVA you will have to complete an Income & Expenditure form and the court will decide what disposable income you have, they will then set a monthly tariff that will be paid to the court who will distribute it amongst the various creditors.
Debt Direct Ltd are cautious of IVAs in one respect as your home may be put at risk, however an IVA does have its place in resolving Debt problems.
Debt Direct Ltd are very much Pro Informal IVAs as they give more scope in finding a solution acceptable to creditors in that it is more costs effective thus the creditors receive a greater return.
Debt Direct Ltd prepares on your behalf a proposal for creditors to consider setting out an Income & Expenditure along with an assets and liability which are encompassed within a contract biding the various creditors, which in itself is similar to a Formal IVA.
The benefit to the creditors means lesser fees, hopefully a quicker resolution, a bigger return, thus more approvals.
The main issue within an Informal IVA is that people can retain their home and in cases can consolidate mortgage arrears, thus creditor and Debtor live in harmony.
For more information or assistance on this matter, e-mail your question to apply@Debtdirectltd.com or call the Phone number.
On receipt of a bankruptcy notice one should take legal advice if they want to avert bankruptcy itself.
One could contact all creditors to see if it is possible to arrange an Informal Arrangement.
It is possible when presented with a bankruptcy notice to apply to the court for time to resolve the issue and in some cases such is granted.
It may be that one wants to consider an IVA (Individual Voluntary Arrangement) as an alternative whereby you should seek advice.
For more information or assistance on this matter, e-mail your question to apply@debtdirectltd.com or call the Phone number.
Insolvency can be structured in various formats.
Firstly one can contact the creditors and try to reach an agreement.
Insolvency can be difficult as ones home could be at risk, creditors are looking to recover as much as possible of the indebtedness which could include equity within the home.
We often find that the difficulties extend to mortgage arrears, credit cards, bank loans and others, so therefore one has to be careful how one approaches this issue.
Insolvency can be addressed by way of an IVA (Individual Voluntary Arrangement) or an Informal IVA.
Addressing an IVA (Individual Voluntary Arrangement), a proposal would be prepared for the creditors consideration, however it is worth noting the structure of any such proposal as this would be binding on all parties once approved by the court, and in cases involves the equity within the home.
An Informal Voluntary Arrangement is prepared on a similar basis, however there is more scope of finding a solution not to include the home as there will be lesser fees taken, such arrangement is by contract and is still binding, there is also the possibility of including mortgage arrears within the arrangement.
We have achieved proposals whereby the creditors assisted in the mortgage arrears being settled over a period of time by the creditors taking reduced contributions, with a capital sum being repaid after a period of time by way of a further advance on the mortgage.
The benefits being that the Debtor would not have to remortgage, would not have any redemption penalty or additional costs, for instance, broker’s fees solicitor’s fees and valuation that may be attached to such an action. The benefit being that the Debtor will be able to re-establish themselves with their mortgage provider and hopefully be able to obtain a further advance in the future that would go to the benefit of the creditors along with a contribution program.
For more information or assistance on this matter, e-mail your question to apply@debtdirectltd.com or call the Phone number.
Phone 01305 832104
We All Have Choices
Call Us!
Debt Direct Ltd has recently extended its services whereby we provide a financial rescue for
both Private Individuals and Business alike. Debt Direct Ltd has had great recent success in the negotiation with HMRC. Debt Direct Ltd strives
to obtain a balance so that creditors and debtors alike live in harmony in the settling of outstanding Debts.
Debt Direct Ltd assists where others do not in repossession / IVA help and advice as problems come in many formats. At Debt Direct Ltd we believe there are choices, however it’s up to the individuals themselves as to whether they want to resolve the problems in question.
In the financial and business sector, Debt Direct Ltd can give a life support in
that it can negotiate with HMRC and Creditors alike to the negotiation and the continuation of their business. IVA Business Rescue provides such assistance.
Debt Direct Ltd> is constantly extending services to other areas of finance and therefore it is worth
noting that a free assessment is on hand. Most services surround debt in some form or another and therefore one has to
look at what financial options are available.
These are two responses we have received from recent clients
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"I was dispondent with nowhere to go"
"My flat had just been repossessed on the 13th December 2007, it was obviously going to be a lousy Christmas until a friend of mine advised that I should contact Debt Service Advice.
I had no family in the area and my father was abroad, I was alone and couldn't afford legal help. Debt Service Advice gave assistance through their legal advisors resulting in my flat being returned. With the assistance of Debt Service Advice and my father who had then returned I was able to negociate with my mortgage provider.
The repossession order has now been lifted which has taken a weight of my mind, however I still had substantial debts.
Debt Service Advice asked me to complete a personal apprisal which included an Incomes & Expenditure, they were then able to enlighten me to my options. It would appear that my best option was an IVA, an Individual Voluntary Arrangement, whereby I pay a sum per month to my Insolvency Practitioner, this itself is payment in respect of all my debts.
I now feel I can get on with life and have recently started a new job and I am looking to a new future with happiness in mind.
Debt Service Advice has been there throughout, even over Christmas and would recommend anybody in a similar position to contact them."
"I was amazed hope was at hand"
"I have recently been made bankrupt and was petrified of what was to come, I had received a letter from the Official Receiver telling me to attend his office for an interview, I did not know what to expect and was very apprehensive.
My accountant recommended that I speak with Debt Service Advice and after putting forward my situation they assisted me with legal representation, with their assistance the meeting took place with the Official Receiver and it was agreed that i would pay £380 per month for 3 years which in itself is better than an IVA over 5 years.
I have been allowed to trade as a hair dresser, although under supervision of the Official Receiver's office and it is hoped in time that I will be able to get my pride back.
Without the assistance of Debt Service Advice there would be no hope as I did not have the money to pay for legal representation.
Debt Service Advice has assited in the restructure of my business and i can now look forwad to a new life. On the website of Debt Service Advice they state the words, "No False Hope" but one can say they have given me hope." |
We do not give False Hope.
The above are extractions from the letters received without the customers details for the sake of their privacy
Frequently Asked Questions
To read more FAQ's please visit our FAQ Page or if you wish us to ask a question yourself please
fill in the form on the FAQ Page and we will post your question with the relevant answer.
Debt / IVA Q) If I enter an IVA at the end, will all my Debts be cleared?
A) If all your Debts form part of your IVA agreement then any excess after the fixed period would then be discarded.
Debt / IVA Q) How will I be able to establish if an IVA or Debt management is the best course of action?
A) The Debt information you supply should assist the advisor in establishing what Debt options are available to you.
Debt Q) From my income what will I be asked to pay towards my Debts?
A) One would have to establish all your Debts and firstly what course of action is best suited to your situation.
Most Debt management programs or IVA's will require an Income & Expenditure along with a schedule of Debts. The disposable income available within the household is central to what Debt agreement one can enter into.
Debt Q) I have substantial Debts but I also have a partner, will he be asked to contribute towards any Debt agreement?
A) If the Debts are solely yours then any agreement will be yours along, however if you live together then the household bills will be split and one could say he is making a contribution by this route.
Debt Q) On Debt Direct Ltd's website there appears to be helpful information, however how can I get someone to explain the legal terminology?
A) Debt Direct Ltd has a helpful site covering many aspects of law and important issues surrounding Debt and insolvency (IVA's, Bankruptcies), if there is any specific area that you need clarification on then please phone Debt Direct Ltd's main help line and one of the team will only be too happy to go through your Debt question.
Debt / IVA Q) How do I establish as to whether a Debt management plan or an IVA (Individual Voluntary Arrangement) is best suited to my needs?
A) Each case will be taken on its merits once we have established what your best options are. It may be neither beneficial to do a Debt management plan or an IVA and a better solution may come within the options.
Debt Q) The company I owed money to has transferred my Debt, do I still have the same obligations?
A) Any agreement relating to this Debt would normally be transferred with the Debt itself, however it could be in your interest if the Debt is old to have a look at the Limitations Act.
Debt Q) My Debt is over 8 years old and I have been told that it has been sold to a collection agency, do I still have to pay?
A) Aged Debts are a problem for any collection agency as the Debt itself could have no value as it could be in breech of the Limitations Act.
Debt Q) Recently the citizens advice negotiated my Debt whereby I pay £5 per month, does this mean that's all I have to pay for the future?
A) It is unlikely that the Citizens Advice would reach an agreement for £5 per month for a lengthy period. It is more than likely that the Debt agreement is per your current circumstances.
Debt / IVA Q) I have Debts of £4,600, what options do I have as I have continuous phone calls for payment?
A) If your current circumstances are such that you are unable to make regular payments to your creditors, then an option could be that you apply for an administration order from the county court.
If your Debts are £5,000 or less and you have a CCJ (County Court Judgment) you will be able to apply to the local court for an Administration order. The judge will make an order based on your circumstances and disposable income and will make an order for one payment to be paid to the court in respect of all the Debts within the Administration Order.
Debt Q) Can I consolidate my Debts within my mortgage?
A) It is possible for all Debt to be consolidated and if you have a mortgage, it may be possible to get a mortgage extension or a remortgage raising sufficient finance to cover the outstanding Debts.
Debt / IVA Q) What would a Debt management scheme cost me?
A) A Debt management scheme is built around affordability and the Debt itself, the more Debt the higher the contribution.
Debt / IVA Q) I have Debt from borrowing money at a high interest rate, how can I resolve this?
A) It sounds like you have encountered Debt from an unlicensed source and the interest rate appears to be extremely high.
Your options could be to report the Debt and any pressure being placed upon you to the OFT (Office of Fair Trading) or even the Police.
Debt Q) My son is 16 and has incurred a substantial amount of Debt without my knowledge, what can I do? (Does this make me responsible?) ?
A) Parents have the responsibility of their children, however it would appear that your son is at least 16 and has obtained Debt without your knowledge, my understanding is that he is solely responsible unless you had knowledge of the Debt itself.
Debt Q) My daughter is a student and has a large amount of Debt, what can she do?
A) If the Debt is a student loan then this will follow her into her working life, however should the Debt be from credit cards etc, then she maybe wise to seek a resolution from the credit provider.
Debt Q) I have a CCJ (County Court Judgement) over Debt, will this affect me getting further credit?
A) It would depend on what Debt you have and the size of the CCJ as to whether it would have any impact and without further information on this matter we cannot advise further.
Debt Q) My daughter had a club whereby she received commission on sales, however some people have not paid and now she finds herself very much in Debt, am I responsible for that Debt?
A) Your daughter should not be running a club if under 18 years of age. Therefore being over 18 she would be solely responsible for any Debt relating to her club activities.
Instruments
Taking the Right Route
Instruments that may assist in keeping your business afloat, be it a sole trader, Ltd company or corporate.
What is an instrument?
Such comes in many variations and will depend on the gravity of the problem and what is best suited to a solution which can differ case by case, for example:
- Business restructure
- Finance indemnity to allow further borrowing
- Venture capital
- IVA / CVA agreements
- Interlocking IVAs
- Deferment of Inland Revenue / Customs & Excise
Are but a few.
Business Restructure
Business restructure may be necessary and a solution would come from within, this could be from sales to managerial skills to staffing levels as well as purchases.
Finance Indemnity
An indemnity bond may be available which will allow your current bankers to give you further facilities in this current time of need and can be a very useful tool.
Venture Capital
This is where a venture group would be prepared to buy into your business by injecting further needed finance. However there may be conditions set in respect of the introduction of monies.
IVA / CVA
An IVA (Individual Voluntary Arrangement) is a personal issue and can assist individuals who are self-employed reach an agreement over a period of time to resolving any outstanding monies owed, or debts.
CVA
A CVA (Company Voluntary Arrangement) refers mainly to businesses who are under financial pressure and again, like an IVA, can be scheduled to make payment over a longer period of time and to allow the continuity and running of the business, again this can be helpful when under financial pressure.
Interlocking IVA
An interlocking agreement can be helpful to directors of companies whereby they utilise their personal assets to provide finance to alleviate financial pressures within a company, again these an be structured in various ways.
Deferment of Inland Revenue / Customs & Excise
Many companies are under severe pressure from the Inland Revenue and Customs & Excise, it may be possible to reach an agreement whereby any existing debt can be deferred for a period of time, it may also be possible to structure an agreement where arrears can be paid off over a longer period of time, in some cases, up to 4 years.
There are many other financial solutions and tools as well as instruments that may be helpful when under financial pressure, but such can only be addressed once one knows the true situation as any variation could have an impact on any solution put forward.
Should you want to discuss the above or other routes one might take then please contact us on
Phone 01305 832104
All information provided is private and confidential
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Taking the right route