Baines and Ernst:

What is insolvency?

Insolvency basically means that you are unable to make repayments towards your debts.

If you’re really struggling with your debts, and can’t afford to repay your lenders, then you could resolve your debt problems with a Debt Relief Order or Bankruptcy.....

What is a Debt Relief Order?

If you are on a low income and do not own a home or any valuables worth more than £300, then you could qualify for a Debt Relief Order – an alternative to Bankruptcy.

With a Debt Relief Order, you could be free from debt in 12 months – helping to alleviate the pressures of debt.

We provide the Debt Relief Service for free; all you need to pay is a one-off free of £90 to the Insolvency Service. Find out how a Debt Relief Order works.

What is Bankruptcy?

Bankruptcy is a way for you to become debt free if you can’t afford to repay your debts.

Bankruptcy is perhaps the most well known debt solution, however it should be considered as a last resort because of the repercussions involved in going bankrupt. For example, you will lose your home and valuable assets; your job could be affected if you work in the finance sector and you could still be required to make contributions from your salary for up to 3 years to help repay your lenders. Find out how Bankruptcy works.

Other debt solutions available

There are other solutions available to you that could help you to clear debts and these include:

Debt Management Plans: Consolidate debt repayments into an easier to manage monthly repayment.

IVA: Repayments are based on what you can realistically afford and after a period that normally lasts for 5 years, any debts included in the IVA that still exist will be written off.

Protected Trust Deed: This solution is available to people living in Scotland. Repayments are based on what you can realistically afford and any debts that still exist at the end of the Deed period – which typically lasts 3 years – will be written off.