Be Debt Free Without bankruptcy
The worldwide credit crunch has led to many people fearing unemployment or a drop in income. This means that many of us are finding that we are under increased pressure to become debt free and are finding our debts becoming more of a problem on a daily basis.
If you feel as though you are in this position where your debts are not affordable to you, you may have thought about declaring bankruptcy. But you can be debt free without bankruptcy as there are a number of ways you can manage your debts and deal with your financial situation, for example a Debt Management Plan or an IVA.
Bankruptcy means that an individual is unable to pay off any of their debts, often due to a low disposable income.
Declaring bankruptcy means that an individual may have to go to court to declare themselves bankrupt and pay the required fees. The summons will be issued and all your assets and income streams are examined. If suitable, you will be declared bankrupt, your creditors will be informed, and details will be placed in your local newspaper.
One of the main problems with using bankruptcy as a debt free option is that you will lose financial control, letting your trustee in charge of your assets and property who will likely sell these in order to repay some of the creditor debt.
Be Debt Free Without Bankruptcy
Bankruptcy does mean that you get a fresh start without having to worry about your debts but there are long term implications which cannot be avoided, which is why you may want to think about an alternate debt free solution:
Debt Management Plan: Informal agreement between you and your unsecured creditors where you agree to make one reduced monthly payment to cover all of your debt. The amount of time it take to be debt free without bankruptcy using a debt management plan is dependant on your circumstances, so please call now for further advice.
IVA: An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your unsecured creditors where you agree to make a set monthly payment and, on completion, your creditors will write off any unpaid debt. On average, you can be debt free without bankruptcy using an IVA in 60 months.
The right debt solution for you can only be determined through getting professional debt advice. Our debt free advisors can take details of your financial situation and help you find a more suitable debt solution – call now for more advice on how you can be debt free without bankruptcy.
