Debt Solutions

Many people need financial advice, but others just need a debt solution. That’s why we help with every kind of money matter.

You can also seek money support from a Financial Advisory Helpline.

English, Welsh & N.Irish Debt Solutions

Debt Management Plan

Debt stress

The first step in resolving any debt problem should be to step up a debt management plan with each creditor.

It’s not necessary to have a debt management company contact your creditors or manage the debt solution. Anyone can call their creditors and make an offer a pay a specific amount of money each month.

If you do decide to have a company run your debt management plan you’ll find you can either go with a for profit or no fee company.

Free or For-Profit Debt Management Plan?

Despite what you might have heard not all for-profit debt management companies are a scam or a rip off. Although why pay for a service which you can have for free is generally how it’s best viewed.

Some companies will run a debt management plan without charging which means every penny goes towards your debt. If you do start a plan with a fee charging organisation they will take a percentage of your monthly payments to cover their costs.


An individual voluntary arrangement (IVA) is a formal debt solution which can help protect your assets or property.

All interest and charges are frozen when the IVA begins and no further action can be taken so long as monthly payments keep getting made.

If you are suitable for an IVA an insolvency practitioner will put forward a proposal to your creditors. The proposal will be to repay a specific amount over 5 years with the remainder of the debt written off.


Only when every other debt solution has been considered should bankruptcy be explored as an option.

When you can’t afford to repay a sufficient amount of the debt within a reasonable period of time, bankruptcy will likely to the right solution.

While some people will pay nothing when they enter bankruptcy, if you have an income or assets the official receiver will request a contribution to be made.

Bankruptcy will last for 1 year although an official receiver who manages your bankruptcy can demand payments are made for 3 years.

Scottish Debt Solutions

There are various Scottish debt advice solutions which you may be applicable for.

Debt Arrangement Scheme

Debt solutions

While people in Scotland could enter a debt management plan, it’s much more likely they will enter a debt arrangement scheme.

A debt arrangement scheme is a formal solution which means unlike a debt management plan, all interest and charges are frozen.

Protected Trust Deed

You will make a monthly contribution to your debt for 4 years and any debt remaining at the end will be written off.

An insolvency practitioner will manage the Trust Deed Scotland and acts as a middle man for you and your creditors. They put forward your proposal, take and redistribute payments but also make sure all assets or equity is included.

A minimum of 10% of the overall debt must be repaid by the end of the 4 year debt solution.


Often called Scottish bankruptcy, sequestration is the most extreme debt solution anyone can enter.

All debts will be written off unless the official receiver who administers the sequestration believes a contribution can be made to them.

An official receiver is appointed to recoup as much money for creditors as possible which allows them to review bank statements regularly, impose an income payment order and much more.

There can be little doubt that sequestration, just like bankruptcy, is extremely intrusive and difficult which is why it should be a last resort.

General Debt Advice

Whenever you enter a debt solution it’s important to know how it will impact on things like your credit rating, employment, etc.

Credit Rating

When entering any debt solution your credit rating is likely to have a default registered against it. However it’s not just entering a debt solution isn’t the only way a credit rating can have a default against it. Simply failing to make the agreed payments on time will be enough for creditor to register a default.

If you’re at the point of considering a debt solution the chances are there have been a number of defaults already registered against you credit score.


Some insolvency solutions such as bankruptcy and sequestration are forbidden in certain jobs.

One common example is some police forces contract don’t allow people to declare themselves bankrupt.

The only way to know if there might be a problem is to check you employment contract before entering any debt solution.


In bankruptcy and sequestration an official receiver will demand a debtor sells their property and may repossess it.

Other debt solutions can also impact on property ownership if there is equity in the property, so it’s worth checking with your debt advice organisation.


Debt is personal which means it can never directly impact on another person, although shared assets could be affected.

Although there have been many rumours about blacklisting a property or someone having their credit rating affected because of someone else being bankrupt.

The only person who can be affected by someone declaring themselves bankrupt is the debtor themselves.