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Debt Solutions
Irresponsible lending in the UK has led to a mountain of debt, with many people
finding they are unable to cope. Debt can sometimes spiral out of control and
create the need for real solutions to resolve the situation. At CBN, we work in
partnership with leading professionals in this field. We refer our clients to a
debt councillor who will discuss the most suitable option depending on an
individual’s unique circumstances. One of our professional partners will then
contact your client to discuss their preferred solution in greater detail.
Debt Management
A Debt Management Plan is an informal agreement between an individual and their
creditors. It enables the individual to repay all their debts with just ONE
MONTHLY AFFORDABLE REPAYMENT that is agreed with creditors.
An "informal agreement" means that the plan is not legally binding and can be
renegotiated throughout the life of the plan if your circumstances change. Our
partners will review your client’s plan every 6 months and assess whether to
renegotiate on their behalf. We'll negotiate with creditors to agree reduced
repayments based on what your client can afford to pay and, whilst we can't
guarantee they'll agree to it, we'll also ask that they freeze or reduce
interest and charges on your client’s accounts.
IVAs
An Individual Voluntary Arrangement, or IVA, is a government endorsed scheme
created to help people with serious debt problems. It is a very popular way for
any individual that qualifies to repay their debt at an affordable amount per
month, but with a guarantee that the debt will be repaid within 60 months from
the commencement of the arrangement. An IVA may help your clients write off up
to 75% of their debts!
Bankruptcy is an option that often has to be considered when your clients
cannot pay their debts. A first time bankrupt with debts will generally receive
their discharge one year after the date of the bankruptcy order (there is the
possibility that in some cases the bankruptcy discharge period will be less than
one year).
Although bankruptcy does have a stigma attached to it and is publicly
advertised, it should always be considered when dealing with individual
insolvency cases. However bankruptcy is just one of several options to be
considered when your clients cannot repay their debts. If your clients ever face
the prospect of bankruptcy you should always look at alternatives as soon as
possible such as an Individual Voluntary Arrangement or a Debt
Management Plan.
Bankruptcy is just one way of dealing with debts you cannot pay. Bankruptcy
proceedings:
- Free those with overwhelming debts so they can make a fresh start, subject to
some restrictions;
- Make sure an individual’s assets are shared out fairly amongst their creditors.
When you refer your clients to CBN, we will appoint a debt councillor who will
advise which debt solution would best suit their needs. As a referring Associate
you will receive an initial commission of up to £105 for identifying a case that
is accepted by our solicitors.
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