Bankruptcy

Bankruptcy is only available for people who live in England, Wales or Northern Ireland and is considered a last resort - all other solutions will be reviewed before bankruptcy is advised.

Bankruptcy has some advantages:

• Your creditors will no longer be able to pursue you or take action against you to recover what you owe
• You will not have to make further payments to your creditors, but will have to pay any surplus income over to your Trustee
• All of your debt will be written off providing you with a fresh start
• Income from benefits or pensions will be yours to keep
• You can expect to be discharged after 1 year and will then be free of debt

There are also disadvantages:

• If you own any valuable assets, including endowment policies, these will usually have to be sold
• It restricts your ability to obtain credit in the future without permission from the lender and your credit rating can be affected for many years after the annulment
• You are not allowed to be involved in the day-to-day management of a limited company plus some additional restrictions
• There may be a clause in any hire purchase agreements that you have which may terminate automatically if you become bankrupt
• There will usually be a fee to pay with your application
• Your bankruptcy will be advertised in a local newspaper

Loan Restructuring

Depending on your situation, a new loan could be the ideal financial solution for you. If you own a property, this would be a secured loan but if not then an unsecured loan may be the answer. It may seem that you are paying so many bills to so many people that your finances are becoming confusing and difficult to manage.

Using this solution, you take out one loan, large enough to pay off all your existing creditors, and then make a monthly affordable payment to one company. Debt Deliverance would also try and negotiate final settlements with your creditors using the loan proceeds. This would have the effect of lowering your monthly payments.

Remortgage

Your home is likely to be the largest financial investment you have ever made. Over the years it may be that you have paid off a significant amount of the original mortgage and/or the value of your property has increased. This could mean that you have a large amount of equity that could be released to pay your other debts if you were to re-mortgage.*

This is a popular solution because you can be debt free in a matter of months without damaging your credit rating too much. We would attempt to negotiate a final settlement with your creditors using the re-mortgage funds.

A re-mortgage might allow you to pay off your debts and perhaps have something left over to treat yourself or save for a rainy day.

* Think carefully before securing other debts against your home. Your home is at risk if you do not maintain repayments on a mortgage.