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Intelligent Debt Management

Intelligent debt management services are often difficult to find, however this is a place where we offer the information and personal service that are needed to intelligently manage debt - helping to manage your debt intelligently and successfully. Our experience and common sense intelligent approach to debt management enables us to offer debt management help and manage your debt in a professional way that will work for you.

It is essential to carry out a full assessment of the current situation in all cases. Our intelligent debt management begins with a form which you can find by clicking here. By completing the form we will be able to make an analysis of income and expenditure, the amount you owe to your creditors and some other information we need to know so that we can intelligently manage your debt.

Once you complete the form, we create your financial file and we can begin to accurately set the amount you can afford to pay your creditors. We then approach all your creditors on your behalf, our intelligent debt management means that your creditors will accept our proposals because they are properly managed plans to manage debts.

A single manageable monthly payment will then be payable, we will then pay your creditors. Eventually helping you to become debt free. Complete the form.

Whatever situation you are in, we can help to intelligently manage debt for you - until you are either free of debt or want to manage the situation yourself because your circumstances have improved.

The first step is to complete the form. We will handle all the details for you and help to solve your debt problems.

Is Bankruptcy right for me?

Many people choose Bankruptcy as a solution. It is important to understand exactly what a Bankruptcy order is and what happens when a Bankruptcy order is made. Bankruptcy could enable you to be debt free. We are able to fully advise you on all the options to intelligently manage your debt - and whether Bankruptcy really is the right solution for you.

Sometimes Bankruptcy can be the right option but in most cases it is not the right option. Bankruptcy does not mean you do not have to make payments to your creditors. The Official Receiver can make a claim on your assets including your home, although this can be avoided with intelligent debt management. Bankruptcy usually lasts for up to 3 years, however in certain circumstances this period can be extended up to 15 years if the Official Receiver believes there has been reckless or irresponsible debt management.

Bankruptcy may be the intelligent way to deal with debt problems. There are many reasons why people find themselves in this situation. If you know you are unable to repay your creditors, you have no assets and there is no realistic prospect of you making reasonable offers of debt repayment to your creditors, then petitioning for Bankruptcy may be the only way to solve the problem.

What is a Petition for Bankruptcy?

Basically a Petition for Bankruptcy is made in one of two ways: You make a petition yourself at a cost of £460 or your creditor will make a Petition for Bankruptcy against you. If a creditor decides to make a Petition for Bankruptcy, they would be responsible for proving that you either could not or would not repay the debt owed to them. Unless the Petition is significantly disputed, it is likely that a Bankruptcy Order will be successfully made against you. Once an order has been made, it is still possible to have it reversed by making other intelligent debt management arrangements.

The cost to Petition for your own Bankruptcy is £460. The usual process leading up to making a petition and after the petition is made is often very stressful.

Before Petitioning for your own Bankruptcy, complete our Intelligent Debt Management Form.

You can contact MoneyGoRound Finance by calling 0845 838 6335 or emailing info@moneygoround-finance.co.uk to request advice.

Useful Intelligent Debt Management Links

Tax Credits
How much are you entitled to?
https://www.taxcredits.inlandrevenue.gov.uk/Home.aspx

Citizens Advice
Information and Advice. T: 020 7833 2181
www.nacab.org.uk

The Office of Fair Trading
Information on consumer rights. T: 0845 722 4499
www.oft.gov.uk

Data Protection Commissioner
Data protection and freedom of information legislation. T: 01625 545745
www.dataprotection.gov.uk

Gingerbread – (One-parent families)
Support for Lone Parents. T: 0800 018 4318
www.gingerbread.org.uk

The Samaritans
Providing confidential emotional support for people who are experiencing feelings of distress or despair. T: 0845 790 9090
www.samaritans.org.uk

Advice UK
Advice and information about your rights. T: 020 7407 4070
www.adviceuk.org.uk

Trading Standards
Free online service, which allows you to make a consumer complaint to your local Trading Standards Service.
www.consumercomplaints.org.uk

Community Legal Service
Help with legal problems.
www.legalservices.gov.uk

Important Information about IVA

The majority of IVA cases are based around one, affordable, monthly, payment, over a period of 60 months. 

This payment is carefully calculated with the debtors assistance and takes into account ALL of their assets and liabilities, their income and their cost of living expenses. The amount payable to creditors is determined by the amount that the debtor can reasonably afford to pay after their normal cost of living expenses have been deducted from their income. This will ensure that the debtor never gets into arrears or misses paying any of their priority commitments such as their mortgage or rent, car finance, utility bills, council tax, etc.

An IVA proposal has to be prepared by a licensed Insolvency Practitioner (IP) who then presents it to creditors at a creditors meeting. Before this meeting is held a draft copy of the proposal is sent to the debtor to be approved. It is at this point that any alterations are made if necessary. Once approved the debtor is asked to take the proposal to their local county court to have it registered. In cases where legal action against the debtor is well advanced there is a protection order that can be applied for known as an 'interim order' but this is done at the IP's discretion.

Once the court procedure is completed a copy of the debtors proposal is sent to each creditor giving them notice as to the time and the place of where and when the creditors meeting will be held. The IP will normally chair this meeting, acting as an honest broker between the debtor and their creditors ensuring that the proposals being made are both realistic and fair to all of the parties concerned, however, this is not mandatory. In the case of a consumer IVA it is unusual for any creditors or their representatives to attend the creditors meeting as most prefer to vote by fax or by post. It is also unusual for the debtor to be asked to attend the meeting, they will more likely be asked to be close to a telephone whilst the meeting is being held. Things may be different if the debts being considered where incurred during commercial activities when in which case the creditors may well want to meet the debtor face to face.

At the meeting, creditors can either vote to accept, or reject the debtors proposals or accept them with modifications but these can only be made with the debtors consent. The rules of an IVA state that providing 75% (in value terms) of those that have voted, vote to accept the proposals (with or without modifications) then the IVA is agreed and becomes legally binding on all other parties whether they voted or not. The effect of this is that, any creditor who chooses not to vote at the creditors meeting is bound by the decision of those who do.

When an IVA is accepted the IP's role becomes that of supervisor, monitoring the IVA's progress and ensuring that the terms and conditions that were agreed to at the creditors meeting are properly adhered to. It is the debtors responsibility to pay the agreed payments to the IP who will then ensure that these payments are distributed to all creditors on a pro-rata basis in accordance with terms and until the successful completion of the IVA. It is in the debtors own interest to maintain their payments as failure to pay will almost certainly result in the failure of the IVA. This situation should be avoided at all costs. If a debtor experiences difficulty in making the agreed payments they should contact their supervisor who may be able to re-negotiate with creditors.

Upon the successful completion of the IVA the debtor will be considered debt free even though they may not have actually paid off all of their debts in full. Any outstanding balances are written off (known as a composition of debts) and the debtor is then free to make a fresh financial start.

It is worth noting that if you do enter into an IVA with your creditors and you have an endowment policy linked to your mortgage then you may be expected to cash it in and pay the proceeds into the arrangement. Likewise, if your property has a reasonable amount of equity then it is likely that a some of it will have to be released at sometime during the arrangement (usually the end), so it can be paid to creditors. Drastic as this may sound it can be a deciding factor in whether an IVA is approved by creditors and a realistic way in which a debtor can retain their property. 

The Risk to Your Current Assets
Assets such as your home, savings and investments are at less risk than with bankruptcy but they are still at risk. However, because the debtor usually proposes the IVA, and because creditors are being offered regular payments, they tend to be more flexible. It is more usual for creditors to require savings and realisable assets (endowment policies, premium bonds, ISAs etc) to be cashed with the home remaining relatively untouched except for the release of some of the available equity usually towards the end of the arrangement.

Where a debtor expects to receive an inheritance or already has assets they should give consideration to any increase in value there may be whilst an IVA is in force. It may be possible to arrange matters to avoid losing out in such circumstances such as amending a will but not by transferring assets in a manner designed to evade a liability to creditors.

The Effect on Your Future Credit
IVAs do impair your credit worthiness. Certainly whilst the arrangement is in place, credit will be something that you will not be allowed to take without the permission of the arrangements supervisor.

The Effect on Your Reputation and Stress
IVAs do not have the stigma that is attached to bankruptcy, so the impact on the reputation is minimal. IVA's are not advertised in the press. However, they will be recorded on the IVA register held by the DTI. Establishing an IVA can be stressful, even if only temporarily. Initiating an arrangement and obtaining final agreement from creditors can be time consuming.

The Pros
• There is not the stigma or publicity that normally accompanies bankruptcy.

• A debtor can continue to trade in a business to generate income.

• The debtor is involved in the choice of assets made available to creditors since the arrangement is designed to suit the debtor's situation. All this is providing the creditors are no worse off than if bankruptcy had taken place.

• Administration costs are normally lower than bankruptcy, enabling higher payments for creditors.

• Creditors can claim tax relief against bad debts just as with bankruptcy.

• Creditors who vote against the IVA are still bound by it as long as the required majority (75%) in value of the creditors who have voted agree to it.

• Creditors recognize that they must accept less than all the money owed.

The debtor does not suffer the same restrictions imposed on bankrupts. For example, a debtor can still be a company director or in the armed forces. 

The Cons
• Usually only suitable if the debtor has unsecured debts of at least £15,000. 

• To gain approval a required (75%) of the value of those creditors who have voted money must agree to accept the proposed arrangement.

• The home and assets of the debtor can still be at risk if the creditors decide not to exclude them.

• Should the IVA fail, the debtor can still be made bankrupt.

• All IVAs are recorded in the DTI register and could appear on the debtors credit file. This could effect any future applications for credit.


DEBT MANAGEMENT

Debt Management Definition: Debt Management is an informal process of negotiation with unsecured creditors to obtain a reduction in the contractual repayment and / or a reduction in the interest / charges being levied by the creditor. The negotiation process involves providing proof to the creditor that the individual has insufficient income to meet all their contractual liabilities.

• Consolidate all your unsecured debts into one AFFORDABLE monthly payment.
• If you are currently struggling with your current monthly commitments, we can help to negotiate repayment terms with your creditors.
• We’ll distribute your monthly payment to your creditors on your behalf.
• We can also negotiate to try and reduce/freeze interest and charges on your accounts.
• We can perform a confidential review of your circumstances to see if you are eligible.

More Links to Help:

Debt Management. Debt Advice. Intelligent Debt Management. Debt Management Solutions. How to become Debt Free. How to Manage Debt. Using Debt Management to deal with your creditors. Debt Management for all. Solving Debt Problems. Unsecured Debt Management. Consolidation Loans. IVAs. Alternatives to Bankruptcy. Living without Credit. Setting up an IVA. Reducing Monthly Payments. Avoiding High Interest. Credit Review. Paying Off Credit Cards. MoneyGoRound Finance Expert Help.