Benefits of an IVA:

1. Consolidation: One affordable monthly payment covers all your debts.
2. Frozen Charges: Interest and charges are frozen once the IVA is in place.
3. Creditor Communication: Your Insolvency Practitioner handles all communication with creditors.
4. Legal Protection: Creditors cannot pursue further legal action during the IVA.
5. Fixed Term: The IVA typically lasts for five years, and any remaining debt is written off.

Considerations for an IVA:

1. Credit Rating Impact: An IVA stays on your credit report for six years, affecting your credit rating and future access to credit.
2. Legally Binding: An IVA is a strict contract with limited flexibility.
3. Income Adjustments: If your financial situation improves, you might be required to increase your payments accordingly.
4. Fees: Administrative fees charged by the Insolvency Practitioner are included in your monthly repayment plan.
5. Expenditure Monitoring: Your expenses might be reviewed, and excessive spending could be questioned.

Benefits of a DMP:

1. One affordable payment.
2. A clear, established budget.
3. You can request interest and charges to be frozen (at creditors’ discretion).
4. In many cases, creditors will cease contact.
5. No need to release home equity.

Considerations for a DMP:

1. Your credit rating and credit file will be impacted for six years or longer depending on your plan.
2. Mortgages and secured debts are not covered.
3. Your debt must be paid back in full.
4. You may incur fees on top of your repayments.
5. No protection for assets.

1. Protection from legal action and creditor demands.
2. Court actions against you are likely to be stopped.
3. Outstanding debt is generally written off after 12 months.
4. Relief from dealing with creditors.
5. Discharge from bankruptcy after the designated period.

Considerations for Bankruptcy:

1.  Adverse impact on credit rating for 6 years.
2. Potential payment obligations for up to 3 years (if income is high enough).
3. Difficulty obtaining credit while bankrupt.
4. Limits on borrowing without notifying lenders.
5. Possibility of losing your home if sold.

1. In most cases, you are discharged and outstanding debt cleared after a year.
2. All debt is frozen during the time period.
3. You are protected from legal action during the time period.
4. Contact from creditors will cease.

Considerations for a DRO:

1. Your name will be added to the Insolvency Register.
2. Your credit rating will be affected for 6 years.
3. The process may impact your current and future employment.
4. If your circumstances change and you cannot fulfil your obligations, the arrangement may be revoked.

1. One affordable monthly payment.
2. Creditor contact will reduce over time and be handled by your Insolvency Practitioner.
3. All charges and interest frozen.
4. On successful conclusion of your PTD your debts will be cleared.
5. You receive full legal protection from any further creditor action.

Considerations for a PTD:

1. Your information will be added to the Insolvency Register.
2. If you are a homeowner and have equity in your property, you may be required to release some to your creditors.
3. Applying for credit cards, loans, mortgages, or other unsecured debts will be affected for the duration of your repayment.
4. A Trust Deed will show on your credit file for 6 years.
5. Your expenditure will be monitored and you may be asked to reduce expenses that are considered excessive.

1. Interest and Charges are frozen if the debt payment plan is accepted.
2. It is legally binding on your creditors.
3. Any assets you have are protected.
4. You don’t have to pay any additional fees in DAS.  The total you pay back is the total you owed.
5. Gives you the ability to pay your debts in full over a timescale which is realistic for you.

Considerations for a DAS:

1. Your details will be registered on a public register (DAS Register).
2. Your credit rating will be affected.
3. If you don’t keep up the repayments the DPP could fail and your creditors could add interest and charges and take further action.