Alternatives to Bankruptcy

Debt Free believe that bankruptcy is a serious financial decision, due to the long term unavoidable impacts. You will lose control of all financial matters and you may find that your future job prospects are limited.

If you are struggling with debt, then there are alternatives to bankruptcy which you should consider. Alternatives to bankruptcy, which can be provided by Debt Free, include:

Debt Management Plan:  An informal agreement between the debtor and their creditor, where one lower monthly payment is negotiated.

For your debt management plan, Debt Free will deal with your creditors on your behalf and offer them a realistic payment that is affordable to you, after your living expenses have been calculated.

Individual Voluntary Arrangement (IVA): An IVA is similar to the above, except from it is a legally binding process. Additional advantages over a debt management plan are that you will be free from all unsecured debt in as little as 60 months, as all unaffordable debt is written off on completion of your IVA.

This alternative to bankruptcy is only available for those who are resident of England, Wales or Northern Ireland. The Scottish equivalent is known as a Trust Deed, and allows the debtor to become debt free in as little as 36 months.

Free Advice on your Alternative to Bankruptcy

Debt Free can offer you free advice about which alternative to bankruptcy is most suitable for your financial situation.

Call our expert debt advisors on freephone 0808 131 0039 or fill out the Quick Enquiry Form for a free callback.

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)