Stuck in financial hardship and unsure what to do? Well the first step is to simply ASK for help now. Please be assured that there is always a workable solution to a debt issue.
This solution will vary depending on your personal circumstances and these solutions can either be informal or formal. We, at GDP Equity Experts, would advise that you explore 1 of the following 3 options as a solution to your debt issue:
The term “Mediation” refers to any instance in which a third party helps others reach an agreement and this would be an informal insolvency procedure. A mediation process involves voluntary participation from both parties, to put all their cards on the table and to find some common ground. The idea is to give a little to get a little in order to come to a fair, confidential and private agreement.
How it works?
A third party contacts your creditors and negotiates an agreement to repay all or some of your debts. Negotiated agreements may involve either or both of the following:
1. Payments from your income
2. Payments from lump sums you may receive, for example from family, friends or inheritance.
Your creditors may be prepared, at the start or later, to agree to write off part of what you owe them. If they do so, they should confirm this agreement in writing.
(2) Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement (IVA) is a legal agreement made between a person unable to pay their debts and their creditors, which allows the debts to be paid off over a stated period of time. This is a formal insolvency procedure.
How it works?
An IVA must be set up by a qualified person, called an Insolvency Practitioner. This will be a lawyer or accountant. The Insolvency Practitioner deals with your creditors throughout the life of the IVA.
Negotiated agreements may involve either or both of the following:
1. Payments from your income over a minimum period of 60 months (5 Years).
2. Payments from lump sums you may receive, for example from family, friends or inheritance and
these funds must be made available within a 6 month period.
If the monthly payments or lump-sum payment into the IVA are not enough to pay your debts in full, the rest will be written off. The insolvency practitioner should advise you about this.
Bankruptcy is a legal proceeding involving an individual that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the individual, or on behalf of a creditor. All of the debtor’s assets are then measured and evaluated, and the assets may be used to repay a portion of outstanding debt.
How it works?
Bankruptcy offers an individual a chance to start fresh by forgiving debts that simply cannot be paid, while offering creditors a chance to obtain some measure of repayment based on the individual’s assets available for liquidation.
Once declared bankrupt:
1. You will receive a copy of the bankruptcy order and may be interviewed about your situation
2. Your assets can be used to pay your debts
3. You will have to follow the bankruptcy restrictions
4. Your name and details will be published on the Individual Insolvency Register
After 12 months you are usually released (‘discharged’) from your bankruptcy restrictions and debts. Assets that were part of your estate during the bankruptcy period can still be used to pay your debts.
What we can do to help?
Since 2010, GDP Equity Experts have helped hundreds of families find the most appropriate and workable solution to their debt related issue.
Before deciding on possible solutions to a debt issue, it is always VERY IMPORTANT to take advice in this regard from a regulated team of debt advisors to plan for the future.
GDP Equity Experts takes pride in our first-class advice and assistance that we offer to our clients. We will work closely with you as we know what is expected and how to get you to where you want to go.
GDP Equity Experts WANT to hear from you today because we WANT to help you today.
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