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FAQs

The Debt Solution Indicator can only deliver a limited assessment of the best solution for you because of the level of personal information provided. By requesting a Call Back we can go through each option in detail and help you to decide which solution will enable you to deal your financial problems.

Will my credit file be affected?

Will my creditors agree to freeze interest and charges?

How long will it take to clear my debts?

Will all of my debts be included?

Can my creditors continue to chase me for payment?

Do all my creditors have to agree?

What happens if my circumstances change?

What happens when I’ve completed my repayment Plan?

Will my home be affected?

Will my job be affected?

How much will it cost?

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Debt Solution Indicator

Will my credit file be affected?

DMP

Your credit file may show that you are repaying your debts through an agreed plan. Missed payments may also be registered and could stay on for up to six years. We can review your credit file as part of the DMP to ensure that any entries that are made are fully compliant.

IVA

An IVA is likely to be noted on your Credit File once it has been agreed and will show on your file for a period of 6 years. This is likely to affect your ability to obtain credit whilst it is on your file.

Bankruptcy

Yes – When a Bankruptcy Order is made it will be noted on your credit file. It will remain on your file for a period of 6 years even after you are discharged from the bankruptcy and will affect your ability to obtain credit.

DRO

Yes – When a DRO is made it will be noted on your credit file. It will remain on your file for a period of 6 years even after you are discharged from the DRO and is likely to affect your ability to obtain credit.

Will my creditors agree to freeze interest and charges?

DMP

Creditors don’t have to freeze interest or charges but many often do to encourage people to maintain payments as part of the Plan.

IVA

If you are proposing to pay your debts in full then your creditors may require interest to be paid but they often agree to accept the amount you are offering without additional interest. Most IVAs, however, provide for only an agreed proportion of your debts to be repaid so interest is not an issue in these situations.

Bankruptcy

No – If you are made bankrupt, and your assets are sufficient to pay the debts and expenses of the bankruptcy in full, interest will be calculated up to the date of payment.

DRO

Yes – All interest and charges are frozen at the date that the DRO is made.

How long will it take to clear my debts?

DMP

The time a DMP will take to clear your debts in full depends on the level of your debts and what you can afford to pay monthly. The higher the level of debt the longer it will take to repay.

IVA

If you comply with the terms of your IVA then, once it has come to an end, all of your debts will be cleared.

Bankruptcy

Your debts will only be cleared if your assets are sufficient to clear them and pay the expense of your bankruptcy. If not you will be discharged from personal liability for your debts, usually, 12 months after you go bankrupt.

DRO

Your debts will be written off at the end of the DRO – usually 12 months.

Will all of my debts be included?

DMP

A DMP can only deal with the debts you tell us about. You will need to continue to meet your obligations with regard to ongoing living costs and any secured debts, for example your mortgage payments if you want to retain the assets over which creditor have security.

IVA

An IVA will normally only deal with unsecured debts and you will need to continue to meet your obligations with regard to ongoing living costs (and trading expenses if you are in business) and any secured debts, for example your mortgage payments.

Bankruptcy

All debts are included when a Bankruptcy Order is made, however, a secured creditor is entitled to retain the benefit of their security so, if you do not keep up the payments on your secured debts you risk losing the assets which those debts are secured on.

DRO

All unsecured debts are included when a DRO is made.

Can my creditors continue to chase me for payment?

DMP

A DMP is not legally binding but, if your creditors agree to it then, as long as you maintain your monthly payments and distributions are made regularly to your creditors they are unlikely to chase you for payment.

IVA

When the IVA has been accepted by creditors you will need to maintain your payments and comply fully with the terms of the arrangement. The IVA will fail if you don’t and creditors would be able to again pursue you for repayment of their debt.

Bankruptcy

Creditors can’t take further action unless the debts are secured on your home or other property.

DRO

Once the DRO has been granted, none of the creditors listed in the application can take further action against you without the Court’s permission.

Do all my creditors have to agree?

DMP

Because a DMP is not legally binding not all creditors have to accept a repayment offer via a Plan. However, we will negotiate on your behalf to convince creditors a DMP is workable option.

IVA

75% of your creditors who express a preference have to agree to your IVA for it to be approved and, if they do, all unsecured creditors are then bound by the terms of the IVA.

Bankruptcy

All of your unsecured creditors are bound by the Bankruptcy Order, however you will remain liable to pay certain debts e.g. student loans, fines, debts arising from family proceedings.

DRO

All of your unsecured creditors are bound by the DRO, however you will remain liable to pay certain debts e.g. student loans, fines, debts arising from family proceedings.

What happens if my circumstances change?

DMP

If your circumstances change, we may be able to renegotiate a revised repayment offer with your creditors. This will often require the completion of a new Income & Expenditure form.

IVA

If your circumstances change during the term of the IVA you would be able to put to your creditors a variation to the original offer which they may be prepared to agree.

Bankruptcy

There will be no impact on the Bankruptcy should your circumstances change during the 12 month period the Order is in place, unless you have surplus income which could be claimed for your bankruptcy for up to 3 years.

DRO

There will be no impact on the DRO should your circumstances change during the 12 month period the Order is in place, unless your financial position improves, in which case, the DRO can be withdrawn.

What happens when I’ve completed my repayment Plan?

DMP

For a DMP to be successfully concluded, all debts must have been repaid in full.

IVA

When you complete your IVA the debts included in it will be deemed settled and any residual balance will be written-off by your creditors.

Bankruptcy

Once you have been discharged from Bankruptcy your debts are written off except to the extent that they are secured on property or other assets.

DRO

Once you have been discharged from the DRO all of the debts included in the DRO are written off.

Will my home be affected?

DMP

If you are a home owner you will need to continue to meet your obligations with regard to ongoing living costs and any secured debts, for example your mortgage payments. Failure to do so could have serious repercussions.

IVA

If you are a home owner you will need to maintain payments to your mortgage company as failure to do so could have serious repercussions. If there is equity in your property your creditors may require you to release some of the equity as part of your IVA.

Bankruptcy

You may be able to avoid having to sell your home if your spouse, partner or a relative can buy your share of its value after any debts secured on it have been paid. If not, the court can order your home to be sold.

DRO

You won’t be able to have a DRO if you own a house, even if it has no equity.

Will my job be affected?

DMP

Because a DMP is not a legally binding agreement it is not included on an official register and therefore it is unlikely that your job will be affected.

IVA

An IVA is a legally binding agreement and, as such, any accepted IVAs will appear on the Individual Insolvency Register, however, most jobs will be unaffected. If you have any specific concerns please ask us and we will give you a specific answer tailored to your situation.

Bankruptcy

Your bankruptcy is entered on a public register and is advertised. There are certain jobs and professions where bankruptcy can disqualify people from continuing in their role. If you have any concerns about how your employment may be affected please ask us and we will give you a specific answer tailored to your situation.

DRO

Your DRO is entered on a public register. Subsequently, your employment may be affected. You can’t act as a director of a company or be involved in its management unless the court agrees. If you have any specific concerns please ask us and we will give you a specific answer tailored to your situation.

How much will it cost?

DMP

Undebt.co.uk will charge a fee for setting up and administering a DMP – Fees

IVA

Undebt.co.uk will charge a fee for producing an IVA proposal and administering the IVA when agreed by creditors. Click here for more information about our fees

Bankruptcy

If you apply to the court for your own bankruptcy, you will have to pay a court fee and deposit totaling £710

DRO

The fee is £90 and can be paid in installments but the fee must be paid before the application can be made.

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Contact Us

Telephone number:  0117 376 3523
E-mail: helpme@undebt.co.uk

Useful Links

  • Home
  • About Us
  • Contact Us
  • Fees
  • Statutory Information
  • Complaints
  • Privacy

Services

  • Bankruptcy
  • Debt Management Plans (DMPs)
  • Individual Volunteering Arrangements (IVAs)
  • Debt Relief Order (DRO)
  • Companies
  • Partnerships

Contact Us

Neil John Maddocks, Robert John Coad and Jonathan Law are licensed to act as Insolvency Practitioners in the UK by the Insolvency Practitioners Association. Registered Office: Methwold Gloucester Road Almondsbury Bristol BS32 4HQ

You can also find free-to-consumer debt advice at The Money Advice Service: https://www.moneyadviceservice.org.uk/en/tools/debt-advice-locator

Where Undebt.co.uk proposes and administers Individual Voluntary Arrangements (IVAs) we do so in the belief that an insolvency appointment is likely and therefore the most appropriate debt solution.

Undebt.co.uk Ltd registrations are as follows: Registered in England & Wales No. 08229616. Data Protection Act 1998 registration number ZA039053.

Undebt.co.uk is authorised and regulated by the Financial Conduct Authority and is permitted to offer debt counselling and debt adjusting services for a fee. Consumer Credit Licence No. 678898

You can find out more about dealing with your creditors in a guide produced by the Insolvency Service: In Debt - Dealing with your creditors.

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