How to write off debt
Not only can we help you lower repayments, we could also help you find a solution that could help you legally write off debt you cannot afford to repay.
To find out if you qualify for one of the solutions below, contact us today for a no-obligation financial review…
Write off debt with an IVA
One of the most effective ways to pay and write off unsecured debt is to enter an Individual Voluntary Arrangement (IVA).
The Arrangement typically lasts for a period of 5 years, during this time you will repay your debts at a reduced rate, interest and charges will be frozen and any debts that still exist at the end of the IVA term will be written off.
Find out how an IVA works to see if it is the right solution for you.
Write off debt with a Protected Trust Deed
Protected Trust Deeds are only available to people living in Scotland.
If you qualify for a Protected Trust Deed, you will repay your debts at a reduced rate and interest and charges will be frozen. Any debts that still exist at the end of the Deed period, which typically lasts for 3 years, will be written off.
Find out how a Protected Trust Deed works to see if it is the right solution for you.
Write off debts with a Debt Relief Order
If you are on a low income and have little assets, then you could qualify for a Debt Relief Order.
The Debt Relief Order will typically last for a period of 12 months, after this time, you will be freed from the debts within the Order.
Find out how a Debt Relief Order works to see if it is the right solution for you.
Write off debts with Bankruptcy
If you have no way of repaying your debts, then Bankruptcy could be the solution for you.
It is seen as a last resort due to the repercussions involved in going bankrupt, but if you go ahead with Bankruptcy, you could be freed from debts in 12 months.
Find out how Bankruptcy works to see if it is the right solution for you.
Write off unfair debts
You can get debts deemed unfair written off by the courts. This applies when the terms of the debts are considered grossly unfair, in the same way that a contract can be considered unfair in a court of law. This type of write-off is reserved for extreme cases. For example, you may have paid interest rates and charges that were disproportionate to the loan taken out or the lender may not have informed you about the total cost of the credit you took out with them.
Beware of companies who promise to clear all your debts
If a company claims that they can help you write off large amounts of debt quickly and easily, you’d be right to think the offer is too good to be true!
Sadly, there are no quick fixes to getting out of debt. Lenders will expect payment and unless you go through a legally binding solution like an IVA, Debt Relief Order, Bankruptcy or Protected Trust Deed, lenders have every right to pursue your for payment.
Many people have been defrauded by rogue companies claiming that they can write off debt – so save yourself time and money and choose the help of a professional management company to help you get your finances back on track.
At Baines & Ernst, we’re honest and upfront with all customers about the benefits of getting debt help, as well as key information that they need to know before starting a debt solution. For example:
- For an IVA or PTD to go ahead, the proposal will need to be approved by your lenders. For an IVA, lenders representing 75% of the value of your debts will need to agree and for a PTD it’s two thirds of your lenders that will need to vote in favour.
- Debts will be written off if you adhere to the terms of the IVA / PTD. Once in an IVA or PTD, you have legal protection from your lenders and they cannot petition for your bankruptcy. If the IVA or PTD is not completed lenders could petition for your bankruptcy as you will no longer benefit from legal protection.
- Only unsecured debts (those not secured against something you own) can be included in a debt solution.
- As part of an IVA or a PTD, homeowners may be asked to release equity from their property to help repay lenders. If you cannot do this, then the repayment plan could be extended by one year.
- If you go bankrupt, then you will lose control of your assets as these will be sold to help repay your lenders.
- Whatever debt solution you enter into, your credit rating will be affected. This is because you will not repaying your debts at the rate you originally agreed with your lenders. But if you have already made late payments or missed them altogether, then your credit rating may already be affected.
If you would like to know more about our fee structure for any of our services, please click here.
Debt services you can trust
At Baines & Ernst, we do not offer a ‘debt elimination’ service; we offer honest advice and expert help to getting out of debt.
We’ve helped more than 140,000 people escape the pressures of debt, so don’t struggle alone any longer – let us help you find a solution that will help you beat debt once and for all!