What is this new legislation?

Question

Can anyone kind enough to tell me what is the goverment legislation,by which you can write off some of your debts according to the ad on the TV from the debt managment companies. Is this another con by this companies or there is realy a way to write your debt off without going bankrupt.

Answer 1

You have to be in full-time employment and be in a position where you can't pay any of your debt off. And I think they reduce it by 20% or something.

Answer 2

Hello

Yes there are ways of writing off debt.

Before you contact these companies.
Contact www.nationaldebtline.co.uk this is a genuine not for profit organisation.

They have lots of helpful guides and you can also speak to someone for advice.

I think the companies making adverts are talking about IVA - individual volunatry agreements. These companies will charge you from 2k upwards to do this for you!!!!

I am not sure about the level of your debt and circumstances etc so could not go into detail. If your debt is less than 5k then you could get an administration order, maybe going into a concession order later, again National debtline can help and advise FREE.

I have found the contact details for you, please contact them before you contact anyone else.

How do I contact National Debtline?
FREEPHONE: 0808 808 4000
Monday to Friday 9am to 9pm
Saturday 9.30am to 1pm
24-hour voicemail. Please leave a message to request an information pack or factsheet.

FAX: [phone]

POSTAL ADDRESS:

National Debtline
Tricorn House,
51-53 Hagley Road,
Edgbaston,
Birmingham
B16 8TP

Answer 3

IVA's (Individual Voluntary Arrangements)

- Dont do it unless you've spoken to CAB or a proper debt adviser. In most cases those companies on tv issue IVA willy nillie, where they should be the last course of action.

Answer 4

its not new

its called an IVA and it is basically a bankruptcy but without losing youe house.

what these adverts dont tell you is it has the same restrictions placed on you as a bankrupt (cant be charity trustee / comapny director, no credit without telling people first), it affects your credit file in a similar way, and you have to get the majority (i think its 75%) of the people you owe money to to agree to it.

it usually goes something like you agree to pay a fixed sum every month to the trustee (who takes a fee, which is why they want to sell them to you) and this is split between the people you owe money to. At the end of the 5 years you will usually have to re-mortgage your house and pay a lump sum as well.