Before you make the decision to declare yourself bankrupt, there are a number of important considerations to take into account.
Debt Management is an informal solution and allows you to consolidate all your unsecured debts into a single affordable monthly payment.
Debt Relief Order
A Debt Relief Order is a formal insolvency procedure specifically designed for individuals with low debt levels and low income.
The decision to go bankrupt should never be taken likely. Whether you have decided that you have no alternative other than to petition for your bankruptcy or if one of your creditors has threatened to petition for your bankruptcy, there are important issues that you should understand before accepting that you have no alternatives: –
Obviously this can have a major impact on your lifestyle both in the short and longer term and as such your other options should be fully explored before you consider your final decision to go bankrupt.
As insolvency practitioners we have actual experience of acting as Trustees in Bankruptcy. Most bankruptcy advisers do not have this experience and so they are unlikely to be able to give you the practical advice that we are able to.
Advantages of bankruptcy
Disadvantages of bankruptcy
Debt Management Plans are tailor-made to each debtor’s individual financial circumstances. This means that your payment plan is based upon a calculation of your monthly income and outgoings; which guarantees a monthly payment that you can afford to pay. With a Debt Management Plan, you make a single, affordable monthly payment which is distributed between each of your creditors on your behalf.
In a debt management plan a lower, more manageable monthly payment plan can be arranged for each of your debts, and in many cases it can even be arranged to freeze or reduce interest payments on your accounts moving forward.
Is a Debt Management Plan right for me?
In many financial instances, debt management plans allow debtors to consolidate a number of unsecured debts into one manageable monthly payment. Debt consolidation can make it easier to pay all of your existing, unsecured debt within a reasonable amount of time.
But that doesn’t mean that debt management plans are right for everybody and it is important to ensure that a debt management plan is the right solution for you.
Advantages of a Debt Management Plan
Disadvantages of a Debt Management Plan
Please note that Shawcross Williams do not offer or provide advice on Debt Management Plans. Should a suitable insolvency solution not be applicable to your circumstances Shawcross Williams will refer you to a partner company to assist you further.
A debt relief order (DRO) is one way to deal with your debts if you don’t own your own home, don’t have much spare income, and your debts are £20,000 or less. Some types of debt don’t count towards this limit, so you must check whether you’re eligible before you decide.
Who is eligible for a DRO
You may be able to apply for a DRO if all of the following points apply to you: –
Advantages of a DRO
Disadvantages of a DRO