Available debt solutions if you are heavily indebted in the UK

A Debt Management Plan (DMP) or an IVA can be a resort to your personal debt problems and primarily comprises an estimation of how much an applicant or a debtor can afford to repay to his creditors. This amount is calculated on the basis of his income and living expenditure. A careful assessment is made for the expenses that can be included in your budget.

If you are heavily indebted in the UK, you may consider either opting for a DMP or an Individual Voluntary Arrangement (IVA) for a definitive solution. In either case, you would first need to enlist all your living expenditures which would then be reduced from your household earnings in order to evaluate your surplus earnings.

This surplus amount can be used to repay to your creditors every month. However, your creditors may review your expense budget and have the authority to accept or reject your DMP or the IVA proposal if they find your figures to be unreasonable. Hence, it is essential for you to work out on your living expenditure budget as per the guidelines and make your estimation reasonably perfect.

For instance, a majority of your monthly living expenses is fixed ones, such as your rent, utility bills, Council Tax and insurance payments that are all pre-determined and therefore, they can be easily included in your budget.
But at the same time, you also need to attach supplements or proofs to your living expenses, such as monthly statements of your utility bills etc.

In case of variable expenses such as fuel cost, housekeeping cost, etc, you need to adhere to the standard guidelines to accommodate such expenses. An IVA is a straightforward solution, nether than less it needs to be supervised by a professional.
We advise you to seek the support of a Debt Charity or a professional IVA company before applying.

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