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Frequently Asked Questions

Debt Management Pros and Cons

What are the Advantages of a Debt Management Plan?

A debt management plan will give you the satisfaction that you are paying ALL your debts. You will no longer need to juggle your payments and worry about those unexpected bills that life tends to throw at you

Other Advantages:
- You will have one payment each month.
- You will no longer need to communicate directly with your existing creditors
- Your choosen debt management company will request that interest and charges are frozen. This will stop your debts growing, enabling you to pay back the money you have borrowed.

What are the Disadvantages of a Debt Management Plan?

There are some disadvantages with a Debt Management Plan.
- If your creditors refuse to freeze or lower your interest, paying a reduced amount over a longer period could increase the amount you repay.
- You will pay a fee for the services provised. There are companies which can do the same job for free. You can get more information at www.moneyadviceservice.org.uk - You are still required to repay in full any items of credit that are not included in your debt management plan.
- A Debt Management Plan will affect your credit rating in the medium to long term. As you are repaying your debts at a reduced rate, your lenders are legally obliged to send you a Default Notice to say your account is in arrears. A Default Notice will remain on your credit file for 6 years.

IVA Pros and Cons

INDIVIDUAL VOLUNTARY ARRANGEMENTS

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your unsecured creditors, arranged and supervised by a Licensed Insolvency Practitioner (IP). In short you agree to pay back the maximum you can afford over a specified period of time, usually 5 years, at the end of which period your creditors agree to write of any remaining balances.

The IP will work with you to calculate the maximum monthly payment you are able to make and also assess whether you have anything else you are able to offer to your creditors to enhance the agreement e.g. from the sale of an asset or savings.

An IP will advise you on the terms of the agreement to maximise the chances of acceptance by your creditors and will assist you in preparing the legal document.

We do not charge you for advice about an IVA or for help with the preparation of the documents. If you are in a debt management plan already it will continue as normal until your IVA has been approved.

Our partners do charge fees for the work both for getting the agreement approved by your creditors and for monitoring it, but these fees are agreed by your creditors and are taken out of the payments made by you once the arrangement has been approved, so you do not pay anything extra to cover the fees. However, the creditors allow the IP to take their fees before they make payments to them which means that if you did find yourself with sufficient funds to pay your creditors in full, because they take a fee first, you would need to pay these fees in addition to the payments to your creditors.

IS AN IVA THE RIGHT SOLUTION FOR YOU?

An IVA is a form of insolvency and is a legally binding agreement therefore it is important that you consider whether:

- You feel able to commit to a regular payment for the next 5 years
- You may be able to resolve your financial problems without the need for a formal arrangement e.g. if you are expecting a pay rise or could sell an asset to pay your debts
- You are willing to be open and honest with your creditors about everything that you owe and all of the assets that you have
- You are willing to provide the Insolvency Practitioner with copies of your wage slips or other proof of income each year. A review of income and expenditure is usually a required term of the agreement.
- You are in financial difficulty and cannot make the required payments to your creditors

ADVANTAGES

- You will pay an amount that you can afford over a limited period; usually 5 or 6 years
- Provided that you fulfill the terms of your IVA, the remainder of your debts will be written off at the end of the term
- Your creditors cannot pursue you for the debts once the IVA is agreed
- Your creditors cannot apply interest or charges to your debts
- If you are a homeowner, you will usually be able to remain in your home

DISADVANTAGES

- It is a formal agreement; if you fail to keep to your side of the agreement the arrangement may fail and you may find yourself owing as much as you did at the start
- The arrangement must be recorded on the Insolvency Register
- If you have a property, the creditors will expect you to try to remortgage towards the end of the agreement to release funds to be paid in to the IVA. If you are unable to do so the arrangement may be extended for a further 12 months.
- Some debts such as mortgages, secured loans, taxes and fines cannot be included in an IVA so you will remain responsible for paying these
- You cannot take out further borrowing during the course of the arrangement
- If your situation changes for the better you will be expected to pay more to your creditors

SERVICES FOR SCOTTISH RESIDENTS

If you live in Scotland, the debt solutions available to you are different.

DEBT ARRANGEMENT SCHEME

As part of a Debt Arrangement Scheme (DAS), a Debt Payment Programme (DPP) allows you to repay your debts by making one monthly payment of the amount which you have left over each month after paying your essential bills and expenses. You will pay this amount until the debts are cleared, provided that this will happen within a reasonable period.

Your creditors cannot contact you about payments or arrears if you are the subject of a DPP, and they will have to freeze interest and charges on your debts.

Your details will appear on the DAS register and your credit rating will uauslly be affected for 6 years.

You cannot apply directly for a DPP, this can only be done by an approved money adviser. We can refer you to an approved money advisor or you can find a money adviser local to you using this link.

If you would like us to pass your details to an approved money adviser, please call us or fill in the contact form and we will call you back to obtain the relevant information.

This solution is only available to you if you live in Scotland.

PROTECTED TRUST DEED

A trust deed is a form of insolvency. You can only apply for a trust deed if your unsecured debts are more than the value of any assets that you have. A trust deed usually lasts for 3-5 years, during which time your assets will be transferred to a trustee and you may need to make regular payments out of your earnings.

Provided that your creditors agree to the arrangement and you meet your obligations, your trust deed will become protected.

Your creditors cannot contact you about payment or arrears if you are the subject of a protected trust deed, and they will have to freeze interest and charges on your debts.

There will be restrictions on your spending during a trust deed and you may have to sell some of your assets. A trust deed may also affect your employment.

Your details will appear on the public Register of Insolvencies for 5 years and will appear on your credit file for 6 years from the date of the arrangement.

You will need an Insolvency Practitioner (IP) to set up a trust deed. We can refer you to a trusted provider or you can obtain further information using this link.

If you would like us to pass your details to an approved money adviser, please call us or fill in the contact form and we will call you back to obtain the relevant information.

This solution is only available to you if you live in Scotland.

SEQUESTRATION

Sequestration is the Scottish legal term for bankruptcy.

Sequestration would require you to transfer all of your assets and property to a trustee who will sell these assets to pay your creditors.

You can only apply for sequestration if you owe more than £1500 and have not been made bankrupt in the last 5 years. You must be unable to meet repayments to your debts as they fall due.

Sequestration usually lasts for a year, after which period any remaining debts will be written off and you will be discharged.

The fee for sequestration is £200.00.

Bankruptcy and Debt Relief Orders

If our providers are unable to offer you a solution that they feel would suit your financial solution, they may recommend Bankruptcy or a Debt Relief Order. Although it is not possible for them to administer these products for you, they may be able to assist you in finding the right information and completing your application.

BANKRUPTCY

Bankruptcy is a formal insolvency procedure. You can apply to go bankrupt if you can demonstrate that either your debts exceed your assets or you are unable to pay your debts when they are due. There is no restriction on the level of debt you must have to apply.

They cannot assist you in petitioning for bankruptcy but you can apply online through the central government website, GOV.UK. You'll receive your decision online, usually within 28 days and, if your bankruptcy is approved, you'll be contacted by the Official Receiver (or trustee in bankruptcy) who will oversee your bankruptcy and will want to know about your financial history.

If you have surplus income after meeting your essential household and personal expenses, you will have to make payments out of your income for up to 3 years.

In addition you will have to hand over any assets you have to the trustee in bankruptcy to be sold to repay your creditors. This does not include everyday items you need for your reasonable domestic needs but is likely to include your house if it can be sold for more than the mortgage outstanding.

Bankruptcy usually lasts for 1 year, and once you have been freed (discharged) from your bankruptcy, you are released from your debts (with certain exceptions).

ADVANTAGES

- Debts are written off at the end of one year.
- Creditors can’t take further action unless the debts are secured on your home or other property.
- It allows you to make a fresh start after only a year.
- 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.
- You can apply online and pay in instalments

DISADVANTAGES

- Your bankruptcy is entered on a public register
- If you apply for your own bankruptcy, you will have to pay an adjudicators fee and deposit totaling £680
- You will remain liable to pay certain debts – in particular:
--- student loans;
--- fines;
--- debts arising from family proceedings; and
--- budgeting loans and crisis loans owed to the Social Fund
- If your situation changes for the better you will be expected to pay more to your creditors
- Any business you have will almost certainly be closed down
- Your employment may be affected
- Certain agreements such as hire purchase agreements and mobile phone contracts may come to an end
- You can’t act as a director of a company or be involved in its management unless the court agrees
- You will be committing an offence if you get credit of £500 or more without disclosing that you are bankrupt
- You may have a bankruptcy restrictions order made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly

DEBT RELIEF ORDER (DRO)

A debt relief order is only available to individuals who have very little disposable income available to pay to their creditors, have few or no assets, and a limited level of debt.

You may be eligible for a Debt Relief Order if you owe less than £20,000 in total to your creditors, you have £50 or less left over each month after your essential bills and outgoings have been paid, your car (if you have one) is worth less than £1000 and your other assets don’t exceed a value of £1000.

A DRO will last for 1 year, and once your DRO has ended you are released from your debts (with certain exceptions). You need to approach an approved intermediary for the application to be put forward, and you will need to pay a fee of £90.

ADVANTAGES

- Your debts will be written off at the end of the DRO.
- None of the creditors listed in the DRO application can take further action against you without the court’s permission.
- After 1 year your debts will be written off
- The fee (£90) is affordable and can be paid in instalments but the fee must be paid before the application can be made.
- You will keep your assets and a vehicle as detailed above.
- The approved intermediary ensures that you are given appropriate advice and that you fit the criteria for a DRO.

DISADVANTAGES

- Your DRO is entered on a public register.
- Your DRO will remain on your credit file for 6 years.
- You can’t have a DRO if you have an existing bankruptcy order, an IVA, are subject to bankruptcy restrictions, or you have had a DRO in the last 6 years.
- You will remain liable to pay certain debts – in particular:
--- student loans;
--- fines;
--- debts arising from family proceedings; and
--- budgeting loans and crisis loans owed to the Social Fund
- Your employment may be affected.
- Your DRO could be revoked (withdrawn) if you don’t co-operate with the official receiver during the year that your DRO is in force.
- You can’t act as a director of a company or be involved in its management unless the court agrees.
- You will be committing an offence if you get credit of £500 or more without disclosing that you are subject to a DRO.
- You may have a debt relief restrictions order* made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly.
- You can’t have a DRO if you own your own home. Even if you have negative equity.

* An order that will place restrictions similar to those in force while subject to a DRO, which the official receiver may apply for.

Frequently Asked Questions

Debt Management Pros and Cons

What are the Advantages of a Debt Management Plan?

A debt management plan will give you the satisfaction that you are paying ALL your debts. You will no longer need to juggle your payments and worry about those unexpected bills that life tends to throw at you

Other Advantages:
- You will have one payment each month.
- You will no longer need to communicate directly with your existing creditors
- Your choosen debt management company will request that interest and charges are frozen. This will stop your debts growing, enabling you to pay back the money you have borrowed.

What are the Disadvantages of a Debt Management Plan?

There are some disadvantages with a Debt Management Plan.
- If your creditors refuse to freeze or lower your interest, paying a reduced amount over a longer period could increase the amount you repay.
- You will pay a fee for the services provised. There are companies which can do the same job for free. You can get more information at www.moneyadviceservice.org.uk - You are still required to repay in full any items of credit that are not included in your debt management plan.
- A Debt Management Plan will affect your credit rating in the medium to long term. As you are repaying your debts at a reduced rate, your lenders are legally obliged to send you a Default Notice to say your account is in arrears. A Default Notice will remain on your credit file for 6 years.

IVA Pros and Cons

INDIVIDUAL VOLUNTARY ARRANGEMENTS

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your unsecured creditors, arranged and supervised by a Licensed Insolvency Practitioner (IP). In short you agree to pay back the maximum you can afford over a specified period of time, usually 5 years, at the end of which period your creditors agree to write of any remaining balances.

The IP will work with you to calculate the maximum monthly payment you are able to make and also assess whether you have anything else you are able to offer to your creditors to enhance the agreement e.g. from the sale of an asset or savings.

An IP will advise you on the terms of the agreement to maximise the chances of acceptance by your creditors and will assist you in preparing the legal document.

We do not charge you for advice about an IVA or for help with the preparation of the documents. If you are in a debt management plan already it will continue as normal until your IVA has been approved.

Our partners do charge fees for the work both for getting the agreement approved by your creditors and for monitoring it, but these fees are agreed by your creditors and are taken out of the payments made by you once the arrangement has been approved, so you do not pay anything extra to cover the fees. However, the creditors allow the IP to take their fees before they make payments to them which means that if you did find yourself with sufficient funds to pay your creditors in full, because they take a fee first, you would need to pay these fees in addition to the payments to your creditors.

IS AN IVA THE RIGHT SOLUTION FOR YOU?

An IVA is a form of insolvency and is a legally binding agreement therefore it is important that you consider whether:

- You feel able to commit to a regular payment for the next 5 years
- You may be able to resolve your financial problems without the need for a formal arrangement e.g. if you are expecting a pay rise or could sell an asset to pay your debts
- You are willing to be open and honest with your creditors about everything that you owe and all of the assets that you have
- You are willing to provide the Insolvency Practitioner with copies of your wage slips or other proof of income each year. A review of income and expenditure is usually a required term of the agreement.
- You are in financial difficulty and cannot make the required payments to your creditors

ADVANTAGES

- You will pay an amount that you can afford over a limited period; usually 5 or 6 years
- Provided that you fulfill the terms of your IVA, the remainder of your debts will be written off at the end of the term
- Your creditors cannot pursue you for the debts once the IVA is agreed
- Your creditors cannot apply interest or charges to your debts
- If you are a homeowner, you will usually be able to remain in your home

DISADVANTAGES

- It is a formal agreement; if you fail to keep to your side of the agreement the arrangement may fail and you may find yourself owing as much as you did at the start
- The arrangement must be recorded on the Insolvency Register
- If you have a property, the creditors will expect you to try to remortgage towards the end of the agreement to release funds to be paid in to the IVA. If you are unable to do so the arrangement may be extended for a further 12 months.
- Some debts such as mortgages, secured loans, taxes and fines cannot be included in an IVA so you will remain responsible for paying these
- You cannot take out further borrowing during the course of the arrangement
- If your situation changes for the better you will be expected to pay more to your creditors

SERVICES FOR SCOTTISH RESIDENTS

If you live in Scotland, the debt solutions available to you are different.

DEBT ARRANGEMENT SCHEME

As part of a Debt Arrangement Scheme (DAS), a Debt Payment Programme (DPP) allows you to repay your debts by making one monthly payment of the amount which you have left over each month after paying your essential bills and expenses. You will pay this amount until the debts are cleared, provided that this will happen within a reasonable period.

Your creditors cannot contact you about payments or arrears if you are the subject of a DPP, and they will have to freeze interest and charges on your debts.

Your details will appear on the DAS register and your credit rating will uauslly be affected for 6 years.

You cannot apply directly for a DPP, this can only be done by an approved money adviser. We can refer you to an approved money advisor or you can find a money adviser local to you using this link.

If you would like us to pass your details to an approved money adviser, please call us or fill in the contact form and we will call you back to obtain the relevant information.

This solution is only available to you if you live in Scotland.

PROTECTED TRUST DEED

A trust deed is a form of insolvency. You can only apply for a trust deed if your unsecured debts are more than the value of any assets that you have. A trust deed usually lasts for 3-5 years, during which time your assets will be transferred to a trustee and you may need to make regular payments out of your earnings.

Provided that your creditors agree to the arrangement and you meet your obligations, your trust deed will become protected.

Your creditors cannot contact you about payment or arrears if you are the subject of a protected trust deed, and they will have to freeze interest and charges on your debts.

There will be restrictions on your spending during a trust deed and you may have to sell some of your assets. A trust deed may also affect your employment.

Your details will appear on the public Register of Insolvencies for 5 years and will appear on your credit file for 6 years from the date of the arrangement.

You will need an Insolvency Practitioner (IP) to set up a trust deed. We can refer you to a trusted provider or you can obtain further information using this link.

If you would like us to pass your details to an approved money adviser, please call us or fill in the contact form and we will call you back to obtain the relevant information.

This solution is only available to you if you live in Scotland.

SEQUESTRATION

Sequestration is the Scottish legal term for bankruptcy.

Sequestration would require you to transfer all of your assets and property to a trustee who will sell these assets to pay your creditors.

You can only apply for sequestration if you owe more than £1500 and have not been made bankrupt in the last 5 years. You must be unable to meet repayments to your debts as they fall due.

Sequestration usually lasts for a year, after which period any remaining debts will be written off and you will be discharged.

The fee for sequestration is £200.00.

Bankruptcy and Debt Relief Orders

If our providers are unable to offer you a solution that they feel would suit your financial solution, they may recommend Bankruptcy or a Debt Relief Order. Although it is not possible for them to administer these products for you, they may be able to assist you in finding the right information and completing your application.

BANKRUPTCY

Bankruptcy is a formal insolvency procedure. You can apply to go bankrupt if you can demonstrate that either your debts exceed your assets or you are unable to pay your debts when they are due. There is no restriction on the level of debt you must have to apply.

They cannot assist you in petitioning for bankruptcy but you can apply online through the central government website, GOV.UK. You'll receive your decision online, usually within 28 days and, if your bankruptcy is approved, you'll be contacted by the Official Receiver (or trustee in bankruptcy) who will oversee your bankruptcy and will want to know about your financial history.

If you have surplus income after meeting your essential household and personal expenses, you will have to make payments out of your income for up to 3 years.

In addition you will have to hand over any assets you have to the trustee in bankruptcy to be sold to repay your creditors. This does not include everyday items you need for your reasonable domestic needs but is likely to include your house if it can be sold for more than the mortgage outstanding.

Bankruptcy usually lasts for 1 year, and once you have been freed (discharged) from your bankruptcy, you are released from your debts (with certain exceptions).

ADVANTAGES

- Debts are written off at the end of one year.
- Creditors can’t take further action unless the debts are secured on your home or other property.
- It allows you to make a fresh start after only a year.
- 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.
- You can apply online and pay in instalments

DISADVANTAGES

- Your bankruptcy is entered on a public register
- If you apply for your own bankruptcy, you will have to pay an adjudicators fee and deposit totaling £680
- You will remain liable to pay certain debts – in particular:
--- student loans;
--- fines;
--- debts arising from family proceedings; and
--- budgeting loans and crisis loans owed to the Social Fund
- If your situation changes for the better you will be expected to pay more to your creditors
- Any business you have will almost certainly be closed down
- Your employment may be affected
- Certain agreements such as hire purchase agreements and mobile phone contracts may come to an end
- You can’t act as a director of a company or be involved in its management unless the court agrees
- You will be committing an offence if you get credit of £500 or more without disclosing that you are bankrupt
- You may have a bankruptcy restrictions order made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly

DEBT RELIEF ORDER (DRO)

A debt relief order is only available to individuals who have very little disposable income available to pay to their creditors, have few or no assets, and a limited level of debt.

You may be eligible for a Debt Relief Order if you owe less than £20,000 in total to your creditors, you have £50 or less left over each month after your essential bills and outgoings have been paid, your car (if you have one) is worth less than £1000 and your other assets don’t exceed a value of £1000.

A DRO will last for 1 year, and once your DRO has ended you are released from your debts (with certain exceptions). You need to approach an approved intermediary for the application to be put forward, and you will need to pay a fee of £90.

ADVANTAGES

- Your debts will be written off at the end of the DRO.
- None of the creditors listed in the DRO application can take further action against you without the court’s permission.
- After 1 year your debts will be written off
- The fee (£90) is affordable and can be paid in instalments but the fee must be paid before the application can be made.
- You will keep your assets and a vehicle as detailed above.
- The approved intermediary ensures that you are given appropriate advice and that you fit the criteria for a DRO.

DISADVANTAGES

- Your DRO is entered on a public register.
- Your DRO will remain on your credit file for 6 years.
- You can’t have a DRO if you have an existing bankruptcy order, an IVA, are subject to bankruptcy restrictions, or you have had a DRO in the last 6 years.
- You will remain liable to pay certain debts – in particular:
--- student loans;
--- fines;
--- debts arising from family proceedings; and
--- budgeting loans and crisis loans owed to the Social Fund
- Your employment may be affected.
- Your DRO could be revoked (withdrawn) if you don’t co-operate with the official receiver during the year that your DRO is in force.
- You can’t act as a director of a company or be involved in its management unless the court agrees.
- You will be committing an offence if you get credit of £500 or more without disclosing that you are subject to a DRO.
- You may have a debt relief restrictions order* made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly.
- You can’t have a DRO if you own your own home. Even if you have negative equity.

* An order that will place restrictions similar to those in force while subject to a DRO, which the official receiver may apply for.

Solution Pro's & Con's

Debt Management Pros and Cons

What are the Advantages of a Debt Management Plan?

A debt management plan will give you the satisfaction that you are paying ALL your debts. You will no longer need to juggle your payments and worry about those unexpected bills that life tends to throw at you

Other Advantages:
- You will have one payment each month.
- You will no longer need to communicate directly with your existing creditors
- Your choosen debt management company will request that interest and charges are frozen. This will stop your debts growing, enabling you to pay back the money you have borrowed.

What are the Disadvantages of a Debt Management Plan?

There are some disadvantages with a Debt Management Plan.
- If your creditors refuse to freeze or lower your interest, paying a reduced amount over a longer period could increase the amount you repay.
- You will pay a fee for the services provised. There are companies which can do the same job for free. You can get more information at www.moneyadviceservice.org.uk - You are still required to repay in full any items of credit that are not included in your debt management plan.
- A Debt Management Plan will affect your credit rating in the medium to long term. As you are repaying your debts at a reduced rate, your lenders are legally obliged to send you a Default Notice to say your account is in arrears. A Default Notice will remain on your credit file for 6 years.

IVA Pros and Cons

INDIVIDUAL VOLUNTARY ARRANGEMENTS

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your unsecured creditors, arranged and supervised by a Licensed Insolvency Practitioner (IP). In short you agree to pay back the maximum you can afford over a specified period of time, usually 5 years, at the end of which period your creditors agree to write of any remaining balances.

The IP will work with you to calculate the maximum monthly payment you are able to make and also assess whether you have anything else you are able to offer to your creditors to enhance the agreement e.g. from the sale of an asset or savings.

An IP will advise you on the terms of the agreement to maximise the chances of acceptance by your creditors and will assist you in preparing the legal document.

We do not charge you for advice about an IVA or for help with the preparation of the documents. If you are in a debt management plan already it will continue as normal until your IVA has been approved.

Our partners do charge fees for the work both for getting the agreement approved by your creditors and for monitoring it, but these fees are agreed by your creditors and are taken out of the payments made by you once the arrangement has been approved, so you do not pay anything extra to cover the fees. However, the creditors allow the IP to take their fees before they make payments to them which means that if you did find yourself with sufficient funds to pay your creditors in full, because they take a fee first, you would need to pay these fees in addition to the payments to your creditors.

IS AN IVA THE RIGHT SOLUTION FOR YOU?

An IVA is a form of insolvency and is a legally binding agreement therefore it is important that you consider whether:

- You feel able to commit to a regular payment for the next 5 years
- You may be able to resolve your financial problems without the need for a formal arrangement e.g. if you are expecting a pay rise or could sell an asset to pay your debts
- You are willing to be open and honest with your creditors about everything that you owe and all of the assets that you have
- You are willing to provide the Insolvency Practitioner with copies of your wage slips or other proof of income each year. A review of income and expenditure is usually a required term of the agreement.
- You are in financial difficulty and cannot make the required payments to your creditors

ADVANTAGES

- You will pay an amount that you can afford over a limited period; usually 5 or 6 years
- Provided that you fulfill the terms of your IVA, the remainder of your debts will be written off at the end of the term
- Your creditors cannot pursue you for the debts once the IVA is agreed
- Your creditors cannot apply interest or charges to your debts
- If you are a homeowner, you will usually be able to remain in your home

DISADVANTAGES

- It is a formal agreement; if you fail to keep to your side of the agreement the arrangement may fail and you may find yourself owing as much as you did at the start
- The arrangement must be recorded on the Insolvency Register
- If you have a property, the creditors will expect you to try to remortgage towards the end of the agreement to release funds to be paid in to the IVA. If you are unable to do so the arrangement may be extended for a further 12 months.
- Some debts such as mortgages, secured loans, taxes and fines cannot be included in an IVA so you will remain responsible for paying these
- You cannot take out further borrowing during the course of the arrangement
- If your situation changes for the better you will be expected to pay more to your creditors

SERVICES FOR SCOTTISH RESIDENTS

If you live in Scotland, the debt solutions available to you are different.

DEBT ARRANGEMENT SCHEME

As part of a Debt Arrangement Scheme (DAS), a Debt Payment Programme (DPP) allows you to repay your debts by making one monthly payment of the amount which you have left over each month after paying your essential bills and expenses. You will pay this amount until the debts are cleared, provided that this will happen within a reasonable period.

Your creditors cannot contact you about payments or arrears if you are the subject of a DPP, and they will have to freeze interest and charges on your debts.

Your details will appear on the DAS register and your credit rating will uauslly be affected for 6 years.

You cannot apply directly for a DPP, this can only be done by an approved money adviser. We can refer you to an approved money advisor or you can find a money adviser local to you using this link.

If you would like us to pass your details to an approved money adviser, please call us or fill in the contact form and we will call you back to obtain the relevant information.

This solution is only available to you if you live in Scotland.

PROTECTED TRUST DEED

A trust deed is a form of insolvency. You can only apply for a trust deed if your unsecured debts are more than the value of any assets that you have. A trust deed usually lasts for 3-5 years, during which time your assets will be transferred to a trustee and you may need to make regular payments out of your earnings.

Provided that your creditors agree to the arrangement and you meet your obligations, your trust deed will become protected.

Your creditors cannot contact you about payment or arrears if you are the subject of a protected trust deed, and they will have to freeze interest and charges on your debts.

There will be restrictions on your spending during a trust deed and you may have to sell some of your assets. A trust deed may also affect your employment.

Your details will appear on the public Register of Insolvencies for 5 years and will appear on your credit file for 6 years from the date of the arrangement.

You will need an Insolvency Practitioner (IP) to set up a trust deed. We can refer you to a trusted provider or you can obtain further information using this link.

If you would like us to pass your details to an approved money adviser, please call us or fill in the contact form and we will call you back to obtain the relevant information.

This solution is only available to you if you live in Scotland.

SEQUESTRATION

Sequestration is the Scottish legal term for bankruptcy.

Sequestration would require you to transfer all of your assets and property to a trustee who will sell these assets to pay your creditors.

You can only apply for sequestration if you owe more than £1500 and have not been made bankrupt in the last 5 years. You must be unable to meet repayments to your debts as they fall due.

Sequestration usually lasts for a year, after which period any remaining debts will be written off and you will be discharged.

The fee for sequestration is £200.00.

Bankruptcy and Debt Relief Orders

If our providers are unable to offer you a solution that they feel would suit your financial solution, they may recommend Bankruptcy or a Debt Relief Order. Although it is not possible for them to administer these products for you, they may be able to assist you in finding the right information and completing your application.

BANKRUPTCY

Bankruptcy is a formal insolvency procedure. You can apply to go bankrupt if you can demonstrate that either your debts exceed your assets or you are unable to pay your debts when they are due. There is no restriction on the level of debt you must have to apply.

They cannot assist you in petitioning for bankruptcy but you can apply online through the central government website, GOV.UK. You'll receive your decision online, usually within 28 days and, if your bankruptcy is approved, you'll be contacted by the Official Receiver (or trustee in bankruptcy) who will oversee your bankruptcy and will want to know about your financial history.

If you have surplus income after meeting your essential household and personal expenses, you will have to make payments out of your income for up to 3 years.

In addition you will have to hand over any assets you have to the trustee in bankruptcy to be sold to repay your creditors. This does not include everyday items you need for your reasonable domestic needs but is likely to include your house if it can be sold for more than the mortgage outstanding.

Bankruptcy usually lasts for 1 year, and once you have been freed (discharged) from your bankruptcy, you are released from your debts (with certain exceptions).

ADVANTAGES

- Debts are written off at the end of one year.
- Creditors can’t take further action unless the debts are secured on your home or other property.
- It allows you to make a fresh start after only a year.
- 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.
- You can apply online and pay in instalments

DISADVANTAGES

- Your bankruptcy is entered on a public register
- If you apply for your own bankruptcy, you will have to pay an adjudicators fee and deposit totaling £680
- You will remain liable to pay certain debts – in particular:
--- student loans;
--- fines;
--- debts arising from family proceedings; and
--- budgeting loans and crisis loans owed to the Social Fund
- If your situation changes for the better you will be expected to pay more to your creditors
- Any business you have will almost certainly be closed down
- Your employment may be affected
- Certain agreements such as hire purchase agreements and mobile phone contracts may come to an end
- You can’t act as a director of a company or be involved in its management unless the court agrees
- You will be committing an offence if you get credit of £500 or more without disclosing that you are bankrupt
- You may have a bankruptcy restrictions order made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly

DEBT RELIEF ORDER (DRO)

A debt relief order is only available to individuals who have very little disposable income available to pay to their creditors, have few or no assets, and a limited level of debt.

You may be eligible for a Debt Relief Order if you owe less than £20,000 in total to your creditors, you have £50 or less left over each month after your essential bills and outgoings have been paid, your car (if you have one) is worth less than £1000 and your other assets don’t exceed a value of £1000.

A DRO will last for 1 year, and once your DRO has ended you are released from your debts (with certain exceptions). You need to approach an approved intermediary for the application to be put forward, and you will need to pay a fee of £90.

ADVANTAGES

- Your debts will be written off at the end of the DRO.
- None of the creditors listed in the DRO application can take further action against you without the court’s permission.
- After 1 year your debts will be written off
- The fee (£90) is affordable and can be paid in instalments but the fee must be paid before the application can be made.
- You will keep your assets and a vehicle as detailed above.
- The approved intermediary ensures that you are given appropriate advice and that you fit the criteria for a DRO.

DISADVANTAGES

- Your DRO is entered on a public register.
- Your DRO will remain on your credit file for 6 years.
- You can’t have a DRO if you have an existing bankruptcy order, an IVA, are subject to bankruptcy restrictions, or you have had a DRO in the last 6 years.
- You will remain liable to pay certain debts – in particular:
--- student loans;
--- fines;
--- debts arising from family proceedings; and
--- budgeting loans and crisis loans owed to the Social Fund
- Your employment may be affected.
- Your DRO could be revoked (withdrawn) if you don’t co-operate with the official receiver during the year that your DRO is in force.
- You can’t act as a director of a company or be involved in its management unless the court agrees.
- You will be committing an offence if you get credit of £500 or more without disclosing that you are subject to a DRO.
- You may have a debt relief restrictions order* made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly.
- You can’t have a DRO if you own your own home. Even if you have negative equity.

* An order that will place restrictions similar to those in force while subject to a DRO, which the official receiver may apply for.

Terms & Conditions

iDebtPlan reserves the right, at any time and without prior notice, to remove or cease to supply any product or service contained on this website. In the event that such removal takes place we shall not be liable to you in any way whatsoever for such removal.

Prices, and details, of products and services (and any offers) posted online are subject to change without notice. All products and services are subject to availability and we give no guarantee in this regard. The provision of details of products and services on this website are not, and should not be construed as, an offer to sell or buy such products or services by the relevant company. The company advertising the products or services concerned may accept or reject your offer at its sole discretion.

The copyright in the material contained in this website belongs to iDebtPlan or its licensed source. Any person may copy any part of this material, subject to the following conditions:

While iDebtPlan has taken care in the preparation of the contents of this website, this website and the information, names, images, pictures, logos, icons regarding or relating to iDebtPlan or the products and services of the same (or to third party products and services), are provided on an 'as is' basis without any representation or endorsement being made and without any warranty of any kind, whether express or implied, including but not limited to, any implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement, compatibility, security and accuracy. To the extent permitted by law, all such terms and warranties are hereby excluded. In no event will iDebtPlan be liable (whether in contract or tort (including negligence or breach of statutory duty) or otherwise) for any losses sustained and arising out of or in connection with use of this website including, without limitation, loss of profits, loss of data or loss of goodwill (in all these cases whether direct or indirect) nor any indirect, economic, consequential or special loss.

iDebtPlan does not represent that the information contained in this website is accurate, comprehensive, verified or complete, and shall accept no liability for the accuracy or completeness of the information contained in this website or for any reliance placed by any person on the information.

iDebtPlan does not warrant that the functions or materials accessible from or contained in this website will be uninterrupted or error free, that defects will be corrected or that this website or the server that makes it available are virus or bug free or represent the full functionality, accuracy, reliability of the materials.

If any of these Terms and Conditions (or any terms and conditions relating to a product or service referred to in this website) should be determined to be illegal, invalid or otherwise unenforceable by reason of the laws of any state or country in which such terms and conditions are intended to be effective, then to the extent of such illegality, invalidity or unenforceability, and in relation to such state or country only, such terms or condition shall be deleted and severed from the rest of the relevant terms and conditions and the remaining terms and conditions shall survive, remain in full force and effect and continue to be binding and enforceable. Nothing in these terms and conditions shall exclude iDebtPlan's liability for death or personal injury resulting from iDebtPlan's negligence.

All Intellectual Property Rights (including, without limitation, all database rights, rights in designs, rights in know-how, patents and rights in inventions (in all cases whether registered or unregistered and including all rights to apply for registration) and all other intellectual or industrial property rights in any jurisdiction) in any information, content, materials, data or processes contained in or to this website belong to iDebtPlan or its licensed source. All rights of iDebtPlan in such Intellectual Property Rights are hereby reserved.

Unless otherwise specified, the products and services described in this website are available only to UK residents (excluding the Channel Islands and Isle of Man). The information on this Web Site is not directed at anyone other than UK residents and applications from others will, unless otherwise stated, not be accepted. iDebtPlan makes no representation that any product or service referred to on the website are appropriate for use, or available in other locations. The information and other materials contained in this website may not satisfy the laws of any other country and those who choose to access this site from other locations are responsible for compliance with local laws if and to the extent local laws are applicable. The phone numbers provided only apply to phone calls made from within the UK.

These Terms and Conditions and any terms and conditions relating to products or services described in this website shall be governed by and construed in accordance with the laws of England and Wales. Disputes arising in relation to the same shall, unless otherwise expressly agreed, be subject to the exclusive jurisdiction of the courts of England and Wales.

Telephone calls using the telephone numbers provided on this website and email correspondence with iDebtPlan at the email addresses accessible through, or discernible from, this website may be recorded or monitored. By using such communication methods you are consenting to the recording or monitoring of the same.

If you apply for any product or service detailed on this website, these Terms and Conditions should be read in conjunction with any other terms and conditions which relate to any such product or service and, in the event of any contradiction between these Terms and Conditions and the specific terms and conditions relating to such product or service, the latter shall prevail. For the purposes of these Terms and Conditions, product(s) and service(s) shall include, without limitation, any insurance or financial service.

The images, logos and names on this website which identify iDebtPlan or third parties and their products and services are proprietary marks of iDebtPlan or the relevant third parties. Nothing contained in this website shall be deemed to confer on any person any licence or right on the part of iDebtPlan or any third party with respect to any such image, logo or name.

We reserve the right to change these terms and conditions at any time by posting changes on the website. It is your responsibility to review the website terms and conditions regularly to ensure you are aware of the latest terms and conditions. Your use of this website after a change has been posted will be deemed to signify your acceptance of the modified terms and conditions. We recommend that you print off and retain for your records a copy of these terms and conditions from time to time and a copy of any terms and conditions relating to any product or service which you apply for online, together with any related application form completed and submitted. Any amendment to terms and conditions must be agreed in writing by us, or, if appropriate, by the relevant company with whom you contract.

idebtplan.co.uk Privacy Policy

  1. Who are we?
  2. How we may contact you as part of your debt enquiry
  3. How you contact us
  4. How we keep you informed
  5. Obtaining personal Data/Information
  6. Customer Communication
  7. What personal information de we collect?
  8. Who do we share your personal information with?
  9. How do we use your personal information?
  10. What cookies do we use?
  11. How secure is our site?
  12. Rights of access to your personal information
  13. How long will we retain your personal information for?
  14. Your right to opt out of future contact from us
  15. Your right to be forgotten / erasure of your personal information
  16. How to make a complaint.

Who Are We?

idebtplan.co.uk is a trading name of TFLI Limited, who are authorised and registered with the Financial Conduct Authority as a credit broker, reference number: 723630. TFLI Limited is registered in England and Wales (Company number 08424810), Registered Office; Grimshaw Lane, Bollington, Macclesfield, Cheshire, SK10 5JB. Licensed by the Information Commissioners Office, (registration number Z3585914).

idebtplan.co.uk are aware how important your privacy is, based on this we have implemented measures which will ensure any personal information that is obtained from you by visiting our website will be processed and maintained in line with accepted principles of good information handling and in accordance with the General Data Protection Regulation (GDPR). Contained within this statement and set out below are details of the type of information that we at idebtplan.co.uk may hold about you our customer, also how we obtain and process any information we may have and importantly how we protect your privacy.

This privacy policy is only applicable to us and personal information which may be collected and obtained by us. idebtplan.co.uk may choose to amend the content of this privacy policy on occasion. If this occurs, then we will update the policy and the revised policy will be posted on this website.

How we may contact you as part of your debt enquiry

We and our panel of debt solution providers, will keep you informed with the progress of your enquiry. Unless you state otherwise you may be contacted via telephone, email, post, SMS and automated message. (see further section on 'How we keep you informed')

Lawful basis for collecting your personal data

We process your personal data on different bases, according the reason for which you have provided your data to us. When you are browsing the Website, we process your data on the basis that you have given your consent to such processing by accessing the Website. When you have submitted your debt enquiry with the TFLI Group, we process this personal data on the basis that we have a legitimate interest in processing your data (i.e. to share your information with our debt solution providers). When we have submitted the debt enquiry, we process your personal data on the basis that we need this information to fulfill our obligations under the contract we have entered into with you.

You can withdraw your consent to us processing your personal data for marketing purposes at any time by clicking the "unsubscribe" option in any marketing sms, email we, or any associated third party, send to you. Alternatively, you can withdraw your consent by contacting our Data Protection Officer using the contact details stated in section 14 / 15. If you change your mind about agreeing to us processing your personal data, this will not have any effect on the lawfulness of any processing we have carried out before you change your mind.

How you contact us

If you are required to telephone us using the specified telephone numbers on our website under the Contact or advertising/marketing correspondence then your call may be recorded for training, quality and regulatory purposes. We pride ourselves in complete customer care and this gives us the opportunity to continuously improve and monitor our customer experience.

How we keep you informed

We may want to make contact with you at some point in order to keep you informed regarding offers on products or services which we think you may find of interest, this contact will be made via telephone, email, SMS, automated messages.

Obtaining Personal Data / Information

  1. You are free to access and browse our website idebtplan.co.uk at your convenience and do not have to provide any personal information/data, however I would like to refer you to the ‘Cookies’ section set out within this privacy policy.
  2. The information/data that we collect from you may include the following details:
    1. Name
    2. Residential address
    3. Residential status
    4. Email address (if applicable)
    5. Telephone number (home, mobile, work)
    6. Debt Level
    7. Number of debts
    8. Employment Status
    9. What you do on our website; the results of this will be used to show iDebtPlan examples of which parts of our website are most and least used (please refer to ‘Cookies’ section)

If you register with us and have a question about our services, or alternatively choose to send an email to compliance@tfli.co.uk may also collect the above personal information/data in this instance in order for us to respond to your enquiry.

Customer Communication

Unless the customer states otherwise we will contact the customer via means of telephone, SMS and email to provide information and alerts relating to our services and our associate companies. We may also receive personal information/data from third parties, which enables us to offer Identified potential customers products, and services who have expressed interest in our products and services. Any information/data obtained from third parties is checked in regards to accuracy and we will endeavour to check your information with you on occasion.

Ensuring your personal details & or preferences are kept up to date.

It is your responsibility to ensure that any information we have on record for you is kept up to date and correct. If you do require any of your information to be updated then please contact us as soon as possible so we can ensure it is corrected.

If you require your preferences to be updated then please contact our Compliance Manager as soon as possible (details set out below).

What personal information do we collect?

We collect personal information about you when you give this to us when applying for a debt solution product online. This might be, for example, to obtain comparative quotes for the debt solution and alternative financial products such as debt management plans, bankruptcy, protected trust deed, debt relief orders and individual voluntary arrangements. In the course of providing the Services to you, we may also store information about how you use our Sites, for example, the pages viewed, the website from which you came to visit our Sites, changes you make to information you supply to us, details of the quotes you request and your applications, together with details of your financial information, for example, bank account or payment details.

In order to provide you with a debt solution we may need to collect personal information which data protection legislation defines as sensitive, such as medical history or criminal convictions. By proceeding with obtaining a quote you give your explicit consent to such information being processed by us and our third-party providers for the purposes stated in this Privacy Policy.

We will store the information you provide and may use it to pre-populate fields on the Sites and to make it easier for you to use the Sites when making return visits

We may monitor or record your calls, emails, SMS or other communications but we will do so in accordance with data protection legislation and other applicable law. Monitoring or recording will always be for business purposes, such as for quality control and training (e.g. where you call our compliance or customer service department), to prevent unauthorised use of our telecommunication systems and Sites, to ensure effective systems operation, to meet any legal obligation and/or to prevent or detect crime.

We will periodically review your personal information to ensure that we do not keep it for longer than is permitted by law.

Who do we share your personal information with?

When you complete an enquiry, you consent to us disclosing your personal information to the following parties:

idebtplan.co.uk and TFLI Limited: (i) to communicate with you, including sending you information about products and services which may be of interest to you; (ii) to speed up form filling, or to personalise, or improve your experience on its website, mobile applications or other similar devices, channels or applications; or (iii) in accordance with its privacy policy.

Alternative Solutions Providers - Debt Management Companies offering financial solutions such as debt management plans, bankruptcy, individual voluntary arrangements and protected trust deeds. Our preferred partners in this sector are:

our channel operators: whilst the majority of the channels on our Sites are run by us, some of our channels are designed and maintained for us by our third party service providers. We may receive your personal information from these service providers and use it in accordance with section 4 above. We will only use the personal information we receive from third parties where the relevant third party can show that it was collected and processed with your consent;

Financial Conduct Authority and/or other regulatory/governing bodies, for the purposes of compliance monitoring;

Where permitted by data protection and privacy law, we may also disclose information about you (including electronic identifiers such as IP addresses) and/or access your account:

  1. if required or permitted to do so by law;
  2. if required to do so by any court, the Financial Conduct Authority, the Competition and Markets Authority or any other applicable regulatory, compliance, Governmental or law enforcement agency;
  3. if necessary in connection with legal proceedings or potential legal proceedings; and/or
  4. in connection with the sale or potential sale of all or part of our business.

If you decide to enter into a debt solution with a third party provider through any of the debt solution providers, the information you have provided to us, together with any further information requested by, and supplied by you or us to the third party provider, will be held by the provider for the purposes set out in that provider's privacy policy. Therefore, you are strongly advised to read your chosen provider's privacy policy and satisfy yourself as to the purposes for which the provider will use your personal information before entering into the debt solution. We have no responsibility for the uses to which a provider puts your personal information

If we reasonably believe false or inaccurate information has been provided and fraud is suspected, details may be passed to fraud prevention agencies to prevent fraud and money laundering.

FRAUD PREVENTION AGENCIES (FPA'S)

If we reasonably believe false or inaccurate information has been provided, including in relation to a person's identity, and fraud is suspected, details, including personal data may be passed to fraud prevention agencies to prevent fraud and money laundering. Your details may be passed to statutory bodies, regulators, legal bodies, credit reference agencies, fraud prevention entities and identity and address verification agencies who may record and use your details. They may also disclose your information to other organisations for credit reference, debt tracing, and fraud and money laundering prevention purposes. If you have any queries regarding these uses, please contact the relevant organisation.

By submitting an enquiry form on our site, you confirm that all of the information provided is true and accurate. You also, when applying, authorise the Alternative Solutions Provider to use both fraud prevention and credit referencing agencies to help make relevant decisions. Credit checks and credit reference agencies can also help prevent fraudulent applications.

What is a Fraud Prevention Agency?

Fraud Prevention agencies collect, maintain and share information on any known or suspected fraudulent activity.

They work in the following ways with various organisations:

How do we use your personal information?

We may use your personal information:

  1. to enable you to access and use the Services;
  2. to personalise and improve aspects of our Services;
  3. for research, such as analysing market trends and customer demographics;
  4. to communicate with you, including some or all of the following:
    1. sending you a confirmation email - when you submit an enquiry with us, you will automatically be sent confirmation of your enquiry by email or SMS so that you have a record of it;
    2. sending you debt solution information in order to provide this service to you, we may also send that information to our partners such as debt management companies offering financial debt solutions
  5. to process an application between you and a third party such as the debt management company;
  6. to track applications, which may involve us sharing data with your product provider relating to the product(s) you have chosen. Your product provider may also send us information they hold relating to the product(s) you have chosen for this purpose;
  7. to match our data with data from other sources - we may validate and analyse your information and, in some cases, match it against information that has been collected by a third party to ensure that the information we hold about you is as accurate, consistent and as well-organised as possible.

What cookies do we use?

A cookie is a very small text file placed on your computer or device. Cookies help us to:

  1. understand browsing habits on the Sites;
  2. understand the number of visitors to the Sites and the pages visited; and
  3. remember you when you return to the Sites so we can provide you with access to previously saved quotes.

Most cookies are deleted as soon as you close your browser or mobile application - these are known as session cookies. Others, known as persistent cookies, are stored on your computer or device either until you delete them or they expire. The cookie used to keep you signed in to your account expires after 90 days. Every time you visit idebtplan.co.uk, you will be kept signed in for a further 90 days. By using the Services, you consent to us using cookies.

You can choose to block or delete cookies through your browser settings. If you decide to block or delete our cookies, you will not be able to benefit from the full range of our Services and this may affect the performance of our Sites on your system. For more information on the cookies we use, please see our Cookie Policy.

How secure is our site and what steps do we take to keep you safe?

Our Sites are "Let’s Encrypt Secure Websites" and keeping information about you secure is very important to us. However, no data transmission over the internet can be guaranteed to be totally secure. Sensitive information, for example, your card details, is encrypted to minimise the risk of interception during transit.

We do our best to keep the information you disclose to us secure. However, we can't guarantee or warrant the security of any information which you send to us, and you do so at your own risk. By using our Sites you accept the inherent risks of providing information online and will not hold us responsible for any breach of security.

Rights of access to your personal information

You have certain rights under data protection legislation. For example, we will always let you have a copy of the personal information we hold about you, if you request it from us in writing.

To make enquiries and/or exercise any of your rights set out in this Privacy Policy please contact our Customer Services Team at compliance@tfli.co.uk.

In order to ensure the Services we provide you continue to meet your needs we may ask you for feedback on your experience of using the Sites. Any feedback you provide will only be used as part of our programme of continuous improvement and will not be published on the Sites.

Note that it is your responsibility to check and ensure that all information, content, material or data you provide on the Sites is correct, complete, accurate and not misleading and that you disclose all relevant facts.

You have a right to have inaccurate personal data rectified, you can also request to have incomplete personal data completed (Right to rectification).

We will process your request within one month from date of receipt. If you wish to make any changes please contact our Customer Services Team at compliance@tfli.co.uk

This Privacy Policy shall be governed and construed in all respects in accordance with the laws of England and Wales.

We reserve the right to amend or modify this Privacy Policy at any time and any changes will be published on the Sites.

How long will we retain your personal information for?

The amount of time we retain your information for will depend on the reason it was provided:

Your Right To Opt Out of Future Contact From Us

You can opt out of future contact from iDebtPlan at any time. All of our marketing messages provide an opt out link – please allow up to 48 hours for us to process your opt out request. Alternatively you can enter your details via www.removeme.co.uk or email compliance@tfli.co.uk where your details will be removed from any future marketing campaigns.

Your Right to be Forgotten / Erasure Of Your Personal Information

Under the General Data Protection Regulation (GDPR), all individuals have the right to request the deletion or removal of personal data (the right to be forgotten) under the following circumstances:

There are some circumstances where the right “to be forgotten” does not apply i.e. where we need to comply with a legal obligation.

If you wish to request your “right to be forgotten” please email: compliance@tfli.co.uk

Our marketing partners will also be informed of your request.

How to make a complaint

iDebtPlan always aim to be fair and honest in everything we do, so if you have a complaint about any aspect of our service we’re keen to resolve it as quickly as possible. You can contact us in any of the following ways:
By Post:
Complaints Department, iDebtPlan, Adelphi Mill, Grimshaw Lane, Bollington, Cheshire, SK10 5JB
By Phone:
01625 32 22 74 (calls are charged at local rates and are inclusive of mobile phone users’ free minutes)
By Email: complaints@idebtplan.co.uk

We will acknowledge receipt of the complaint within 3 working days and we hope to provide a final response within 4 weeks. We will write to you again within 4 weeks if we are unable to provide a final response within that time period. In any event we will respond to your complaint in full within 8 weeks.

If you are not satisfied with our response, or if a complaint is not resolved after eight weeks, you may refer the complaint to -
Financial Ombudsman Service
Exchange Tower
London
E14 9SR
Telephone: 0800 023 4567
Web site: www.financial-ombudsman.org.uk
You can report any of your concerns to the Information Commissioner’s Office (ICO)
Information Commissioner's Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF
Tel: 0303 123 1113 (local rate) or 01625 545 745 if you prefer to use a national rate number
Fax: 01625 524 510

Last updated April 2018

Solution Fees

How much does a Debt Management Plan (DMP) cost?

There are two main costs:
We do not charge for setting up your debt management plan. There is a monthly management fee of £35 per month.


Individual Voluntary Arrangement (IVA) cost – what and how we charge for our services

Understanding this can be quite overwhelming. So it’s best to split this in two sections:
a) your fees
b) the costs you pay to creditors.


How much does an Individual Voluntary Arrangement cost?

There is a setup cost and an ongoing monthly cost. The monthly payment is calculated by the value of your essential bills and qualifying priority debts being deducted from any monthly income. On top of the setup costs there are minimum monthly contributions which start from £70 per month but actual payments depend on your affordability and may be:


The IVA Fees:

The Nominee Fee – This fee covers the IVA set-up cost which includes drafting of the proposal, arranging the meeting of creditors and other administrative work as part of the process. This fee is usually the equivalent of your first five monthly payments once the IVA is approved subject to a minimum of £1,000.
The Supervisor Fee – This is normally 15% of each monthly payment made to your creditors after the Nominee fee has been paid. This will cover the work of your Insolvency Practitioner to distribute payments, manage your IVA creditors and maintain their statutory obligations as per the IVA proposal.
Costs and Disbursements – the monthly payment and what it covers
Each month you will be responsible for paying a set amount to service the debts contained within your IVA. This will be a minimum of £70. Other costs, known as disbursements, are paid for additional things such as registering the IVA, insurance (for the money you contribute on a monthly basis) and other costs such as legal or valuation fees should you need to release the equity in your home. These costs are paid out of your monthly contributions.
An example of the costs and fees
This is an illustrative example, based on £31,000 of unsecured debts on a five year IVA without equity in a property while paying £300 per month. (£18,000 in total over 60 months)
The Nominee’s fee (typically equivalent to first 5 contributions): £1,500
The Supervisor’s fee*: £2,475
The Supervisor’s costs**: £1,000
Total returned back to creditors: £13,025 (42% of £31,000)
Total written off by borrower: £17,975 (58% of 31,000)
*15% of further monthly payments once the Nominee’s fee has been satisfied
** Bond fee £50, DTI Fee £15, plus other case dependent costs.


How much does a Debt Relief Order (DRO) cost?

There is an application fee of £90. This fee is paid to the Insolvency Service.
While this isn’t a service we provide we would refer you to the free advice sector for more information.
Step Change
Money Advice Service


Protected Trust Deed (PTD) costs

There are fees charged by the Trustee for a PTD. There are two types of fees; Initial Trustee fee and a realisation fee (percentage of the amount that is paid in to the PTD). In addition there are also related costs which are called disbursements. These include legal registration costs.
The fees will be deducted from your monthly payments. The amount you pay is based on affordability after your essential expenditure has been considered in line with the Common Financial Statement.

iDebtPlan Complaints Procedure

How to complain...

iDebtPlan always aim to be fair and honest in everything we do, so if you have a complaint about any aspect of our service we’re keen to resolve it as quickly as possible. You can contact us is any of the following ways: By Post:

Complaints Department
iDebtPlan
Adelphi Mill
Grimshaw Lane
Bollington
Cheshire
SK10 5JB

By Phone: 01625 32 22 74 (calls are charged at local rates and are inclusive of mobile phone users’ free minutes)

By Email: complaints@impressia.co.uk

We will acknowledge receipt of the complaint within 3 working days and we hope to provide a final response within 4 weeks. We will write to you again within 4 weeks if we are unable to provide a final response within that time period. In any event we will respond to your complaint in full within 8 weeks.

If you are not satisfied with our response, or if a complaint is not resolved after eight weeks, you may refer the complaint to -

Financial Ombudsman Service
Exchange Tower
London
E14 9SR
Telephone: 0800 023 4567
Web site: www.financial-ombudsman.org.uk

You will be contacted by one of our partners shown below:


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