The four solutions


Debt Management

Debt Management is a  non regulated financial solution that will allow the client to make affordable monthly payments to their unsecured creditors.  A full affordability statement will be completed taking into account all expenses leaving a disposable income which will be the figure that we negotiate with the creditors as the full amount available to be paid on a monthly basis  (the minimum disposable income is £125 per month).

In the majority of cases, the creditors will accept the proposal and agree to freeze the interest.  The client has the responsibility of making one payment to PTDS who then distribute the payment to the creditors.  The client is still responsible for paying off the amount owing to the client over an extended period

A client can enter into a debt management programme immediately.

IVA

If the client has 3 or more creditors and owes more than £15,000 in unsecured debt, it is likely that this solution may be the most suitable for the circumstances. In addition, the client must be employed or self employed (able to prove income) and have surplus income of £275 per month after taking into account all expenses. An IVA is a legally binding agreement and normally runs up to 60 months.  The IVA is managed by an Insolvency Practitioner who needs to obtain agreement from a minimum of 75% of the creditors before proceeding.

The Insolvency Practitioner will request the creditors to accept the proposal of a reduced payment once they have confirmed the information on the affordability statement is incorrect.  The interest will be frozen on all accounts.

Trust Deed (Scotland)

If the client has 3 or more credit agreements and owe more than £10,000 in unsecured debt, it is likely that this solution could be the most suitable for the circumstances. In addition, the client must have surplus income of £150 per month. A trust deed is a legally binding agreement and normally runs up to 36 months. The IVA is managed by an Insolvency Practitioner who needs to obtain agreement from a minimum of 75% of the creditors before proceeding.

The Insolvency Practitioner will request the creditors to accept the proposal of a reduced payment once they have confirmed the information on the affordability statement is incorrect.  The interest will be frozen on all accounts.