Struggling to get by when you have debts that only seem to increase is extremely difficult, but it’s so important to remember there are a number of potential solutions available to you. Here at Bluesky Finance, we can talk you through the plus and minus points of several possible ways out from the debt spiral.
One of the most important issues to bear in mind is what will happen to any assets that you may have. Assets can include a variety of things, including property, vehicles, jewellery, shares, savings and personal belongings. Some debt solutions will have an effect on whether you get to keep your assets,, while others won’t.
If you sign up to a Debt Relief Order (DRO), you mustn’t have any assets worth more than £1,000. Should you have them, you may be expected to sell them in order to raise funds that will go to your creditors. This may be the ideal scenario for you, but if it isn’t there are viable alternatives.
An Individual Voluntary Agreement (IVA) is a different matter. In most cases, you will be able to keep assets such as your home and your car. It’s worth noting, however, that if you have a substantial sum of equity in your property, you might be asked to re-mortgage in order to release some money for creditors.
There are other options, of course, including Sequestration, Bankruptcy, a Trust Deed and a Debt Arrangement Scheme. To find out more about the possibilities and the way they affect your assets, have a chat with the Bluesky team as soon as possible.