Dealing with debt

If you have many different debts, there are several ways, using the courts, that you can sort things out yourself.

Administration orders

If you have at least one High Court or County Court Judgment (CCJ) against you, and your total debts are no more than £5000, you can apply for an 'administration order'(AO).This allows the court to send payments to all your creditors.You make one monthly payment to the court and this is then split between all your creditors in a way the court decides.

• Council Tax;
• Gas, electricity, phone and water bills
• Fines.

Once this happens, a creditor can't take any action against you, and they will stop adding interest to your debt. The administration order can include:

These creditors may object to being included on the administration order, but the court will decide whether or not to include them.

Individual voluntary arrangement (IVA)

• write-off part of the debt; and
• not take court action against you or make you bankrupt.

For a detailed guide to Individual Voluntary Arrangements (IVA) click here

Speak to a Direct Debt Solutions advisor on 0800 015 3135 and we’ll advise which debt solution would best suit your debt problems. Take the Express Debt Test now and find out which solution is best for your debt needs.

Bankruptcy

This releases you from your debts after one to five years. But your finances will be officially investigated, and you will have to make reasonable payments towards your debts for the first two or three years, if you can afford to do so. Bankruptcy is not an easy option and you should also get expert advice before applying to make yourself bankrupt. It may not be suitable for people:

• with certain types of job (for example, if you work in finance, you are a solicitor, or self employed);
• if you own (or are buying) your own home; or
• if you have a lot of other assets.

And there are some types of debt you will still have to pay after bankruptcy:

• magistrates fines;
• maintenance for a partner or children;
• debts from fraud; and
• some forms of student loans.

Finally, you must make a lump-sum payment (currently at least £345) to make yourself bankrupt (even if you are receiving benefits). This fee alone rules it out for many people.

Speak to a Direct Debt Solutions advisor free on 0800 015 3135 and we'll advise which debt solution would best suit your debt problems or take the Express Debt Test now and find out which solution is best for you.

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