What debt solutions are available?

When you’re in debt, it’s easy to feel like you’re going through it alone – but you must remember that there are thousands of people in the same position as you and many of them are solving their problems through effective solutions provided by us.

To help you get back on top of your finances, we offer a number of solutions that are tailored to meet your specific needs and budget. Here’s how…

Debt Management Plans

A Debt Management Plan consolidates your debt repayments into one lower, more affordable repayment.

We distribute payment to your creditors and handle all letters and phone calls so you don’t have to worry about dealing with the companies you owe money to.

In 84% of debts managed by us, we can successfully negotiate the freezing of interest and charges. We continually renegotiate on your behalf and send you a yearly review to inform you on what we have done on your behalf.

A Debt Management Plan is the most flexible debt solution we offer as you are not bound into the Plan by a contract.

You repay your debts over a period of time that you’re comfortable with and if your finances change and you would like to increase repayments and clear your debts in a shorter amount of time, we can help you.

IVA

An IVA (Individual Voluntary Arrangement) is a legally binding agreement that offers protection to you and your creditors.

A lower repayment rate is negotiated on your behalf and providing you keep to the terms of the IVA, creditors will agree to freeze interest and charges, and write off any debt that still exists at the end of the Agreement.

An IVA typically lasts for 5 years; this means you could be free from debt at the end of 60 months.

Debt Relief Orders

A Debt Relief Order is an alternative to Bankruptcy and helps people who are struggling on a low income to clear debts.

If you do not own a home or valuable goods over the value of £300, have debts of £15,000 or under and have a disposable income of £50 a month or less after paying essential bills, then a Debt Relief Order could be the solution you need.

We also provide the Debt Relief Order service for free – all you need to pay is a one-off fee of £90 to the Insolvency Service.

Debt Settlements

If you have received a lump sum of money, you could clear what you owe with our Debt Settlement service.

As you plan on settling your debts earlier than planned, we will do our very best to secure a lower repayment rate for you.

And with our 10 years worth of experience and excellent relationships with over 3,500 creditors, we could help you get a proportion of your debt written off.

Bankruptcy

Bankruptcy could help you become free from unsecured debt normally after 12 months. However, this is often seen as a last resort when it comes to clearing debts because of the repercussions it can have on your life. For example, you could lose your home, assets and car to repay your creditors.

At Baines & Ernst, we will always advise you on other solutions that could help you get out of debt before proceeding with Bankruptcy.

Protected Trust Deed

If you live in Scotland a Protected Trust Deed could help you to lower repayment rates on your debts as you work towards paying them off.

A Protected Trust Deed is a legally binding agreement, which means creditors included in the Deed will freeze interest and charges and write off any debt remaining at the end of the Trust Deed period – providing you keep to the terms of the Deed.

A Protected Trust Deed typically lasts for a period of three years, which means you could be free from unsecured debt in 36 months.

Sequestration

Like Bankruptcy, Sequestration should be considered as a last resort for those living in Scotland who want to get out debt. Before proceeding with Sequestration, we will always advise you on other solutions that could help you clear your debts.

For a no-obligation financial review to find out which solution would be most suitable for your financial situation, contact one of our friendly experts today.