Alternatives to the Bankruptcy Process in the UK
Bankruptcy is the most extreme of all the debt solutions, and bankruptcy should only ever be used only as a last resort, once you have exhausted all the possible bankruptcy alternatives and have found no other way to deal with your unmanageable unsecured debt. For most people, this is not the best option for dealing with debts as there are many long term consequences of bankruptcy which cannot be avoided.
Therefore it makes sense to explore the alternatives to the bankruptcy process in the UK. This article is only designed to give you an overview to the alternatives to bankruptcy and we would always recommend that you seek expert advice. For free no-obligation advice about bankruptcy and the alternate debt solutions, please call us.
Alternative to the Bankruptcy Process in the UK include:
Debt Management Plans: A Debt Management Plan will allow you to make repayments to your unsecured creditors with one low monthly payment at a cost you can afford. You make one reduced payment to us, which we will distribute to your creditors (the companies you owe money to).
IVA: An IVA is a legally binding contract, unlike a debt management plan which is an informal and flexible agreement between you and your unsecured creditors. This may sound a little concerning, but an IVA can offer you real benefits over a debt management plan such as your unaffordable debt can be written off on completion of the IVA.