Government Debt Help

The UK Government has put together debt help schemes to help people resolve their debt problems and become debt free. These government backed debt schemes are completely legal and thousands of people undertake them every month.

The Department for Constitutional Affairs wrote a paper in 2004 which aimed to seek views on options to help deal with the problem of people in multiple debt. It recognised proposals for providing better help to the ‘can’t pay’ and ‘can pay’ groups. By Law you should only be paying what you can reasonably afford to pay each month.

Individual Voluntary Arrangements (IVA’s) form part of the Insolvency Act of 1986 – an IVA is designed as a government backed alternative to bankruptcy to help people with high levels of unsecured debt.

Bankruptcy in England and Wales is governed by Part IX of the Insolvency Act 1986 and by the Insolvency Rules 1986. Bankruptcy is a Government backed scheme. You can self-petition (make yourself Bankrupt) or be petitioned for bankruptcy (A debtor files for your bankruptcy). Once you are declared Bankrupt all your debts are written off under the insolvency act and normally you are discharged from your bankruptcy 12 months later depending on your individual circumstances.

A trust deed is a formal debt solution and is only available to Scottish residents.

A Trust deed can offer protection from creditors taking legal action and protect your assets including your home.

There are 2 types of Trust Deeds, Voluntary and Protected Trust Deeds.

Only when the Trust Deed becomes ‘protected’ will you be offered the legal safeguards that are mentioned throughout this site.

For more information on the different types of Trust Deeds please complete the contact form on this page and one of our chosen partners will be happy to guide you through the 2 types and how they work.

The Enterprise Act 2002 introduced a new streamlined government backed IVA scheme called aFast Track Voluntary Arrangement (FTVA) that assists in the arrangement of IVAs after a bankruptcy order has been made.

The basis of an FTVA is that the creditors will receive additional money that would not be available in a bankruptcy e.g. the inclusion of other funds or a prolonged phase of contributions from income.

A Company Voluntary Arrangement (CVA) is a well-known government approved insolvency rescue solution and has been part of UK law since 1986. Frequently companies survive cash flow problems or creditor action to wind up, and prosper in the future after going down the CVA route.

A debt management plan is an informal agreement between a debtor and one or more creditors. Debt Management Plans help reduce most unsecured debts at a reduced payment figure over a fixed period of time that helps you regain control of your finances.

A government approved Debt Management Plan is individually tailored based on what can be realistically afforded on a monthly basis, not what creditors demand. The government approves Debt Management Plans; however they do not administrate them for you.

By Law you should only be paying what you can reasonably afford to pay each month.

A Government Debt Relief Order (DRO) is an individual insolvency procedure that came into force on 6 April 2009, introduced by the Tribunals, Courts and Enforcement Act 2007. Debt Relief Orders were created by section 108 of that Act which were then included into the Insolvency Act 1986.

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