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 | A debt solution like bankruptcy should really only be used as a last possible solution. The problem with this solution of debt problems is that it includes a lot more than simply eliminating debt. When someone declares them self bankrupted, all debt collection actions against that person are prevented. The court grants an "automatic stay", which - with a few exceptions means that creditors cannot come after the money owed to them. |
The most important exception is that when a loan is secured by property creditors can seek relief from the stay and seize that property. The other exceptions are student loan debt, alimony, child support and taxes. The backside for the person who seeks this solution to eliminate his debt is that he or she must hand over all non-exempt property. This property is then sold and the proceeds are distributed amongst the creditors. What is a debt management plan?
A Debt management plan is an arrangement between yourself and a Debt Management company who agree to supervise and distribute your debt repayments to your creditors. Some people can restructure their repayments into a more convenient plan and you won't have to sell your home as part of the agreement. Interest charges are not usually stopped and Debt Management companies may or may not charge a fee for their services - Debt Free Direct would only ever recommend non-fee charging companies
Is a secured loan or remortgage right for me?
This is down to individual choice, mortgage rates are usually lower and set up fees higher than those of loans because of the length of time involved and your home will be at risk in with both a remortgage and secured loan if you cannot meet the repayments.
Will a consolidation loan help me?
If you can consolidate all of your existing debts into a loan that offers lower total repayments then a consolidation loan might be the best solution; you will save money in the long run and avoid more drastic solutions. This might not be possible in some cases as many people who are experiencing serious financial difficulties tend to have poor credit ratings; if this is the case then taking on more financial responsibility is likely to make your situation worse.
Can I remortgage if I have a fixed / discounted mortgage?
Yes, but you will normally have to pay an early settlement charge to your lender. If your settlement charge is high it might be best to opt for a secured loan.
http://www.bankruptcyinstruction.com/ How long does the process take?
Remortgages normally take approximately 6 weeks and secured loans approximately 3 weeks.
Are there any up front fees?
Not on Secured loans. A remortgage application fee will cover the cost of valuation, mortgage reference and administration costs.
Who are you regulated by?
Our insolvency practitioners are regulated by either the Institute of Chartered Accountants in England and Wales (ICAEW) or the Law Society. We are monitored by the ICAEW. The ICAEW monitors compliance by insolvency practitioners with the insolvency legislation and best practice guidance and assists in attaining high standards within the profession.
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