You ll make affordable monthly payments based on your situation

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3 You ll make affordable monthly payments based on your situation We may be able to freeze/reduce any interest and charges We deal with your creditors for you, and letters and phone calls should decrease as set up your arrangements A DMP is informal and you will not be locked into a contract this means you can cancel at any time A DMP is flexible, so if your situation changes for the worse or for the better, it can be reassessed and your payments can be changed quickly With lower payment amounts, it will take longer to repay your debts and you may pay more in the long term Your creditors are not legally bound to freeze interest and charges or agree to the DMP As a DMP is an informal solution, creditors can continue to contact you and pursue your debts in other ways A DMP can only deal with unsecured debts. You cannot include any mortgage arrears, council tax arrears, CSA arrears or fines/court fees into the DMP If you have not already defaulted on your debts, making reduced payments through a DMP can cause defaults which will adversely affect your credit file Advantages Any remaining debt is written off when the IVA successfully completes Standard timeframe of 5 years Legally binding on creditors, so interest and charges are frozen and creditors can no longer pursue you for the debts Your assets, such your car and home, can be retained in most instances Recorded on Insolvency Register and credit file for 6 years and will adversely affect your credit rating If you are a homeowner you may need to release equity from your property with a remortgage. If this is not possible, the IVA maybe extended for 12 months If your IVA fails due to missed payments, your creditors could pursue bankruptcy proceedings against you A proportion of any additional monies you receive must be paid into the IVA

4 No hearing or interview to attend and your DRO application can be approved within days Fee is relatively low at Creditor contact will stop whilst you are subject to a DRO and they cannot pursue you for the debts No repayments once DRO approved Debt is written off after 12 months Strict qualifying criteria. Must have a low disposable income and low or little value in assets Recorded on Insolvency Register and Credit file for 6 years and can adversely affect your credit rating Obligated to report any Change in Circumstance, which if for the better can jeopardise your DRO Cannot lend 500+ with disclosure to the lender. It may be difficult to access a DRO if you hold certain types of employment Advantages Application process takes around 3 months Usually discharged after 12 months Debts are written off once you have been discharged from the bankruptcy Creditor contact will stop whilst you are bankrupt and your creditors cannot pursue you for the debts In some instances, no repayments are needed if you have no affordability to make any Any assets can be sold to raise money Recorded on Insolvency Register and Credit file for 6 years and can adversely affect your credit rating You may not be able to petition for your own bankruptcy if you hold certain types of employment Your bankruptcy will be published in the London Gazette newspaper You may be asked to make payments towards the bankruptcy based on your affordability for up to 3 years

5 If your offer is accepted, it would mean that you would pay back less than you owe On a Full and Final Settlement, your creditor should mark your debt as satisfied so that future searches on your credit file will show that you have successfully dealt with your debt You will be debt free quicker and may have more disposable income each month If you re offering less than the outstanding balance, your creditors can refuse an offer. Different creditors have different policies for accepting offers Clearing your debt will not remove any Default Notices or CCJs previously taken against you from your record They will remain on your credit file for 6 years from their point of entry If you have a Partial Settlement, a remaining balance may still show on your credit file for Future Searches. Also if you want to do any future reclaims on this debt, any money you are owed can be used toward this balance.

6 You ll make affordable monthly payments based on your situation Legally binding on creditors and they are obliged to freeze interest and charges Creditors cannot pursue you for the debts or take any legal action against you Avoids the need to access insolvency as a solution Definite repayment timeframe set from the start Conditions are strict whilst on a DAS Recorded on Credit file for 6 years and can adversely affect your credit rating Recorded on the DAS Register, which is a public register Application to the regulator if you need to make any changes to the terms of your DAS programme All of your debts must be included in DAS Advantages Debt written off when Trust Deed successfully completes Standard timeframe of 4 years Legally binding on creditors with interest and charges frozen - creditors can also no longer pursue you for the debts Your assets, such your car and home, can be retained in most instances Recorded on the Register of Insolvencies and credit file for 6 years and will adversely affect your credit rating If you are a homeowner you may need to release equity from your property with a remortgage If your Trust Deed fails due to missed payments, it can lead to Sequestration A proportion of any additional monies you receive must be paid into the Trust Deed

7 Application process takes around 4 8 weeks Fee is relatively affordable at Debts are written off once you are discharged from the Sequestration Creditor contact will stop once you are awarded Sequestration and they cannot pursue you for the debts In some instances, no repayments are needed if you have no affordability to make any Any assets can be sold to raise money Recorded on the Register of Insolvencies and your Credit file for 6 years - can adversely affect your credit rating You may not be able to petition for your own Sequestration if you hold certain types of employment You may be asked to make payments towards the bankruptcy based on your affordability for up to 4 years Advantages No hearing to attend and your MAP application can be approved within a few weeks Fee is relatively low at Creditor contact will stop whilst you are subject to MAP and cannot pursue you for debts No repayments needed once MAP approved Discharge from the MAP and debt write off occurs after 6 months Strict qualifying criteria. Must have a low disposable income and low or little value in assets Recorded on the Register of Insolvencies and your Credit file for 6 years and can adversely affect your credit rating Obligated to report any Change in Circumstance, which if for the better can jeopardise your MAP You may not be able to work in some professions OR some professions may not be able to obtain a DRO If your MAP fails it could lead to Sequestration

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