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S K Advice Bureau

Debt & Money

 Expert and confidential advice.

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We work with the major UK debt charities to find a solution to suit you.

How we help:

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After an initial interview to assess your circumstances. We will advise you on the most suitable option from the following:
 

  • Breathing space Scheme / Moratorium period [ You could get up to 60 days’ respite from interest, fees, and court action to reduce stress and give you time to deal with your debts. [Moratorium period]
     

  • Debt Management plan [DMP] Pay off your debts at an affordable rate with reduced monthly payments [ We'll work with you to establish a budget that meets your household's needs. If a DMP's right for you we’ll help you set up and manage it.

Image by Josh Appel

Debt Management Plan

Benefits of a DMP

  • You’ll only pay what you can afford to your creditors after we've put together a monthly household budget

  • If you’ve fallen behind with your household bills you can add the arrears to your DMP to help get your accounts back up to date. You'll still need to make your regular ongoing monthly payments.

  • You'll make one monthly payment towards the debt and we'll manage the payments to your creditors for you

  • We’ll review your DMP regularly to make sure you’re paying what you can afford
     

Risks of a DMP

  • Some of your creditors may still contact you

  • Most creditors will agree to reduce or stop interest and charges, but they don’t have to

  • If creditors continue adding interest and charges, this could increase the total amount you currently owe

  • Your creditors don’t have to agree to your reduced payments, but we’ll still send your payments anyway

  • Your creditors may still take further court action against you, such as a County Court judgment (CCJ)

  • Reduced payments may lead to a longer arrangement term and could have a negative impact on your credit file

Individual Voluntary Arrangement [IVA]

An individual voluntary arrangement (IVA) is a formal agreement allowing you to make affordable payments to your debts, usually over five or six years. At the end of your IVA any unsecured debt left is written off. You can also make a one-off payment known as a lump-sum IVA.

Benefits of a IVA

  • You make affordable monthly payments, usually over five or six years

  • If you’re a homeowner you’ll usually be able to keep your home, as long as you maintain the mortgage payments and any secured loans on your property

  • There are no set up fees to be paid before your IVA is agreed

  • There are fees once your IVA is in progress, but these will be included in your monthly repayments and are set by your creditors

  • If you have a lump sum to offer, this can be paid as a one-off ‘full and final’ settlement, or a combination of a lump sum payment followed by monthly payments

  • Once you've made your final payment any remaining unsecured debt is written off and your creditors can't pursue you for payments

     

Risks of a IVA

  • If there’s equity in your home, you’ll need to try to re-mortgage which may result in a higher interest rate

  • If you're unable to re-mortgage you can make a maximum of 12 extra payments or a third party can offer a sum equivalent to the equity

  • If your IVA fails, creditors may request the supervisor of your IVA petitions for your bankruptcy

  • Your credit rating will be negatively affected

  • Your creditors may not agree to your IVA

  • At the end of your IVA, only unsecured debts included in the arrangement will be written off. Any not included will remain outstanding

  • Your IVA will be recorded on a public register

  • Once your IVA is set up your spending will be restricted until the IVA comes to an end

Debt Relief Order [DRO]

A debt relief order (DRO) is a way to have your debts written off if you have a relatively low level of debt and have few assets. If you qualify, our specialist DRO team can apply to the Insolvency Service for you. Debt relief orders are not available if you live in Scotland.

Benefits of a DRO

  • A debt relief order can be a low-cost alternative to bankruptcy

  • You don’t pay anything towards your debts for 12 months. After that they'll be written off

  • Your creditors can't pursue you for your debts during the 12 month period

  • Although a DRO is a formal debt solution, you don't need to appear in court
     

Risks of a DRO

  • A DRO is only available if you owe less than £30,000 (£20,000 in Northern Ireland) and live in England, Wales or Northern Ireland

  • You'll need to pay the Insolvency Service a one-off, non-refundable fee of £90. If you qualify, our specialist team can help you apply

  • You can't apply if you're a homeowner

  • A DRO will appear on a public register and will affect your credit report negatively

Bankruptcy Advice

Bankruptcy is a form of insolvency that writes off debts if you can't afford to repay them, giving you a fresh start. It's a legal process that's suitable if you have little hope of repaying your debts in a reasonable amount of time.
 

Bankruptcy is a debt solution and a form of insolvency. It’s a legal procedure mainly suited to people whose circumstances are unlikely to change, and who have little hope of paying off their debts within a reasonable time.

Benefits of Bankruptcy

  • Your unsecured debts will be written off, giving you a fresh start

  • Your creditors can't take any further legal action against you to recover your debts

  • They must also stop demanding payment, charging interest and adding other charges

  • You won't receive any further contact from your creditors
     

Risks of Bankruptcy

  • Assets such as your home or vehicle may be included in your bankruptcy

  • Some jobs are affected, such as legal or financial roles

  • Bankruptcy will have a negative impact on your credit file and appear on it for six years

  • Your bankruptcy will be recorded on a public register

Other Money & Debt Services

Family

  • Divorce proceedings

  • We provide low cost Mckenzie Friend services [ excluding the rights of audience

Health

  • Assist you in ensuring you get a good standard of service from your health professionals

  • Signposting services to ensure you get the correct level of treatment 

  • Referrals made for Occupational Health Assessment with your local Council

  • Referrals made for Health & Housing Assessment.

UK Benefits

  • Benefits calculator to assess which benefit you are entitled to

  • Please see Citizen’s advice website as I do the same work

  • Benefit Mandatory Reconsideration

  • Benefit Appeal at the First Tier Tribunal

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