DM & IVAs Explained
Have you been bankrupt or are on debt management, insolvency practices?
Millions on millions of people in the last decade have been forced to seek the aid of professional companies specialising in debt management and insolvency practices, in doing so they have been left without a means of proving that they have taken the necessary steps and an ongoing continuous effort to repay their debt by every means available to them. We at Chase Alexander Associates are currently seeking to create a new addition to your credit file to show if you are on a debt management plan and that you have managed to make your minimum payments every month by helping debt management companies inform your credit file of the new and ongoing payment commitments.
The most important thing to remember here is that Credit Repair should not be immediately identified with an IVA, Protected Trust Deeds (PTD, Scotland only) or Debt Management Plans (DMP). Some people will argue that by entering into such arrangements you could be doing your credit score a service and actually improving one’s standing. This is not necessarily the case. All banks use different underwriting criteria. It is also important to remember that simply juggling your credit card bills around with balance transfers etc can be just a damaging in the banks eyes.
Bottom line is you must make choices based on what’s best for you at the right time.
Our idea of credit repair comes after finishing ones journey on a Debt management Plan, IVA etc. This is where the healing begins and one can erase the memory of a more difficult financial past.
Debt Management Plans (DMP)
Debt Management Plans (DMP) is just one of many available debt solutions. They offer a flexible and none legally binding arrangement which allows you to sort out your finances.
They can change when your circumstances do giving you better control, whilst still making positive steps to reduce your debts.
Debt Management Plans are usually for people with unsecured debts totalling £15,000 or less, though this depends on exact circumstances and will greatly vary from person to person.
If you would like to know more about DMP we would recommend speaking to any of the expert advisers at First Finance Money Management by calling 0844 854 8460
Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement is a legally binding contract between you and people you owe money to which allows you to pay what you can afford in set monthly instalments, usually over a period of five years. You may qualify for an IVA if you have £12,000 of unsecured debt or more to 3 or more creditors
After the term of your Individual Voluntary Arrangement any remaining debt will be written off and you will have no further obligations to people you owe money to.
If you would like to know more about IVA we would recommend speaking to any of the expert advisers at First Finance Money Management by calling 0844 854 8460
Trust Deeds (Residents of Scotland)
Residents of Scotland who have problems with debts then one of the specific debt solutions you may want to consider is a Trust Deed.
A Trust Deed is a legally binding agreement between you and your creditors – just like an IVA. However, a trust deed lasts for 3 years (not 5 like an IVA) and during that period you will make a single and affordable payment each month. At the end of 3 years, whatever unsecured debt that is still outstanding will normally be written off. Once a Trust Deed is initiated it becomes ‘Protected’ which means that the people that you owe money to cannot take any further action against you.
If you would like to know more about IVA we would recommend speaking to any of the expert advisers at First Finance Money Management by calling 0844 854 8460