Insolvency Services

TAKE CONTROL OF YOUR DEBT AND MOVE FORWARD TO A BRIGHTER FINANCIAL FUTURE

Personal debt options

If you are struggling to pay your unsecured debts, including loans, overdrafts and credit cards, then Umbrella can assist by arranging and managing an IVA for you.

An IVA is a legally binding contract between you and your unsecured creditors, whereby you agree to make monthly payments into your arrangement usually for a period of 60 months. After this time, any unpaid debt is written off. This contract is drawn up by a Licensed Insolvency Practitioner at Umbrella.

Only pay what you can afford with any unpaid debt written off.

Benefits of an IVA

  • An IVA will be automatically binding on all your creditors, if accepted by creditors owed 75% or more of your unsecured debts who vote on your proposal; 
  • You make one affordable monthly payment for 60 months (maximum 72 months in some cases) that covers all the debts subject to the IVA and our fee;
  • Creditors will receive more than they would in a bankruptcy scenario, so are more likely to support an IVA thereby reducing the risk of bankruptcy;
  • Interest and charges on your accounts are frozen once your IVA has been approved by your creditors;
  • All unwanted communication from your creditors or collection agencies will stop;
  • When you have completed the terms of the IVA, usually at the end of 60 months, the balance on any unpaid debt will be written off meaning you will be debt free (the term may be extended slightly if you have equity in your home and are unable to obtain a secured loan/remortgage);
  • The terms of an IVA can be varied during the course of the term for changes in your circumstances;
  • At the end of the IVA your income will be yours again and your credit ranking will start to repair
  • Less likely to lose your job if you are of a certain profession; 
  • An IVA allows you to keep your home if you are a homeowner;
  • Having a Qualified Professional looking after your IVA takes away the stress of having to deal with creditors and, as Insolvency Practitioners are industry regulated, are bound by a legal code of practice.

Through our in-house Insolvency Practitioner you may be eligible for an IVA if:

  • You cannot afford to repay your debts;
  • The combined total of all your unsecured debts (personal loans, credit cards, store cards, pay-day loans, bank overdrafts, catalogue debts and personal guarantees) is at least £4,000;
  • You have 3 or more lines of credit from 2 or more creditors; 
  • You have a regular income and can afford at least £70 per month towards your debts; and
  • You are renting, a homeowner or lodge with family.

In some instances people are up to date with all their debt payments but in reality they are funding these through new credit lines and their debt levels are rising monthly. 

If your debt is rising you are not managing your debt and you need a solution. 

Did you know that even if you are making the minimum payment to your credit card providers it can still mean for some cards that it will take in excess of 25 years to repay the debt in full.

If you think an IVA could help you please call Umbrella for a no-obligation review on 0800 611 8888 or email us at iva@umbrella.co.uk or

Debt Solution Alternatives 

Dependent upon your personal circumstances, there are a number of debt solutions available to help you clear your debts. We will ensure that the information and explanations provided by us allows you to make an informed decision as to which solution is best suited to you. 

In England, Wales and Northern Ireland:

IVA

An IVA allows you to keep control of your assets including your home. You only pay what you can afford for a fixed term (normally 60 months) with any unpaid  debt written off. If you are a homeowner and have equity in your property you may have to remortgage in the final year to release equity to contribute towards your outstanding debt. If you are not able to do this, your IVA could be extended by 12 months to allow for further monthly payments.   

We will only recommend an IVA if we consider this to be the best option to you.

If we believe that an IVA is not the best solution for you, we will discuss other alternative solutions and put you in touch with the relevant people. 

Bankruptcy

Bankruptcy is a legal process where you are declared unable to pay your creditors. People often worry about the stigma of bankruptcy but if you have severe debt problems this can be the best solution and you are usually released from your debts after 12 months. It is sometimes however, viewed as a last resort and only considered when other options have already been considered as you will automatically lose control of your assets, with limited exceptions, and may adversely affect current and future employment.

Debt Management Plans (DMP)

A DMP is an informal negotiation to reduce your payments to your creditors down to an affordable level - interest and charges can be stopped or reduced. A DMP will continue until your debts are repaid in full or they become affordable. Unlike an IVA, your asset protection is not guaranteed. There are commercial debt management companies that charge a monthly fee but there are also FREE debt management plans available eg Stepchange.

Debt Relief Order (DRO)

A DRO is an alternative to bankruptcy which lasts for 12 months.  This solution is aimed at people with less than £15,000 of debt, who do not own their own home or any other assets over £1,000 in value and have a disposable income of less than £50 per month.  When you are discharged from your DRO, all of your debts detailed within your DRO will be cleared.

Debt Consolidation Loans

A debt consolidation loan or remortgage can help you pay off a number of existing debts and consolidate into one affordable loan. It can also help you pay off high interest credit with a lower rate of interest. However, if your credit rating is already affected by missed or late payments it can be hard to secure a new loan. 

Free Debt Advice 

The Money Advice Service (MAS) was set-up by the Government to offer free and impartial money advice.

See moneyadviceservice.org.uk or call them free on 0300 500 5000

StepChange, a registered charity and not for profit organisation, can advise you about the possible alternatives to an IVA. Visit www.stepchange.org or call free on 0800 138 1111.

 

 

 

Umbrella IVA is provided by Umbrella Accountants LLP   who are authorised and regulated by the Financial Conduct Authority.

Registered Office: Bollin House, Bollin Link, Wilmslow, Cheshire, SK9 1DP: Company Number OC360021. Data Protection Number Z2517380. VAT Registration Number 107346824
Umbrella, Umbrella IVA, Umbrella Insolvency, IVA.Guru and IVA.direct are trading styles of Umbrella Accountants LLP.

Thomas Fox LLB MIPA is an employee of Umbrella Accountants LLP and is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association.

Professional Indemnity Insurance -  In accordance with the disclosure requirements of the Provision of Services Regulations 2009, the firm’s professional indemnity insurer is Hiscox Insurance Company Limited, 1 Great St. Helens, London, EC3A 6HX. The territorial coverage is worldwide excluding professional business carried out in the United States of America or Canada and excludes any action for a claim brought in any court in the USA or Canada.

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