This section gives detailed advice on the four main personal insolvency options and how McAlister & Co can help.
If you are suffering from personal insolvency and do not know the options available to you, then read the summaries below.
Individual Voluntary Arrangement (IVA)
- Interest on your debts will be frozen
- You are protected against legal action from your creditors
- At the end of the IVA, any remaining unsecured debt is written off
- Unlike bankruptcy IVA’s are not published in local papers
- Entering an IVA should not effect professional careers or prevent you from acting as a director.
Debt Management Plan
- Payments are based on what you can afford, not how much you owe.
- A DMP can be a short-term arrangement, or longer term, to suit your particular circumstances.
- We use our experience and relationships with creditors to deal with them effectively on your behalf.
- Your assets are usually protected.
- Set up can be quicker than an IVA.
- Not a legally binding arrangement.
Bankruptcy
- In most cases, bankruptcy will last for 12 months, which is typically a shorter period than an IVA.
- Large amounts of debt can be legally written off. After the debtor is discharged from bankruptcy, no more money is owed to the creditors.
- Bankruptcy does not have the same stigma attached to it as was the case historically.
Debt Relief Orders
- Legally releases you from your debt to creditors
- Inexpensive fees (currently (£90)
- A DRO typically lasts for 12 months, meaning the process is completed sooner than an IVA would be
