Dealing with debt-relevant problems can be very confiscating, and failing to make payments to creditors can really bring huge legal troubles for you that only debt professionals such as those at Bankruptcy Law Center can advise upon.
There are many ways to settle your debt problems. And it would be best to go with the right option for settling your debts; otherwise, they keep on going up & up with time.
The debt payment depends upon your money and assets, the total debt amount, and the type of debt. Therefore, it is advised to consult a debt advisor to get the best possible solutions to your debt problems. However, be sure of the after-effects of applying for a debt solution like the IVA debt solution. Keep reading this post to know more about the solutions for clearing your old debts.
Talking to creditors or money lenders
First, you need to talk to your creditors about your current situation and your inability to pay them back. Then, you can make arrangements to pay debts or formally agree to pay off debt.
Many options available in the market can help you clear your debts without any trouble. You can compare all debt solutions and choose the one which suits your plan.
Breathing space scheme
Breathing space or debt respite scheme is a government scheme helping people in debt. This scheme helps in relieving some pressure and stress on the debtor by giving him some time to pay off his debts.
If you fulfil all the criteria for this scheme, you can avail yourself of the breathing space scheme benefits. This scheme provides 60 days of breathing space without any pressure from the creditors, but you need to select a debt solution for paying your debts. You can get help from any debt advisor to comprehend various debt solutions such as:
Individual Voluntary Agreements
Individual Voluntary Arrangement (IVA) is a binding document between you and your creditors to settle your debts. You will need to make monthly payments, which will go to an insolvency practitioner, who will further distribute the amount between all your creditors.
IVA debt solution can help you pay less than the amount you will pay in case of bankruptcy. IVA can help you to get on with life as soon as possible.
Debt management plans
An agreement between debtor and creditor for the outstanding debt at a rate the debtor can afford to pay. In this plan, debtors are advised to make a single monthly payment to creditors.
This plan helps in repaying the loan quickly and getting out of the debt in a short time. Of course, you still need to pay the entire loan amount, but it at least simplifies the repayment process.
There are various solutions to clearing debts off such as IVA Debt solutions which allows people to write off different types of debts. Creditors may agree to write off part of a debt, or in some cases, all of it, but this depends on the money and assets you possess. It would help if you hired a debt advisor to guide you through the entire process of dealing with debts.