Debt consolidation in Gloucester – IVA, DRO or Bankruptcy

The scene at Gloucester, the county town of Gloucestershire, is typical to that of any other town and city in the UK, given the difficult financial situation and mounting debts. To ease out their crunching debts there needs to be some good debt solutions.

There are a few of them, of which we are going to see three of them. And all the three cater to the various situations of the debtor.

The IVA (Individual Voluntary Arrangement) for Gloucester
This is normally suitable for those who are having a debt of minimum £15,000, do have some surplus disposable income and can manage to make part payments on a monthly basis over a period of maximum 5 years.

It is the most widely accepted and applied debt solution for personal debt problems in Gloucester. When an individual debtor who finds himself in a tight position and feels that he cannot clear off all his debts but is still willing to pay off the maximum possible, for which he requires a certain time period, can go for an IVA. The debtor’s financial status is assessed in detail with his income, expenditure and total disposable amount that he can set aside to repay the debt. A Debt Advisory normally does this. If the debtor finds it agreeable and suitable for him, an agreement to this effect is drafted and sent to the Court and after due process, a copy of it is sent to all the creditors. These creditors get together on a particular day to decide whether to accept the IVA proposal or reject it. For this a voting is held and if 75% of the voting goes in favor, the IVA comes into effect. Then the Debtor makes an agreed monthly payment to the Debt Advisory who then makes the payments to the creditors on an individual basis. The repayment term can be for a maximum period of 5 years.

DRO (Debt Relief Orders) in Gloucester
This type of debt solution is suitable for those debtors, who have debts that are below £15,000, do have neither any surplus income or is below £50 nor have any assets or they are worth less than £300.
This is also a type of insolvency. The debtor, through an authorized Debt Advisor, who will act as the Intermediary, would apply for a DRO by filling up a form and pay the full fee for the application, your application is sent to the official Receiver who would then process it. He may or may not accept it. Once accepted, a notice to this effect will be sent to your address and also a copy of the same would be sent to all the creditors who have been mentioned in the list along with the application. Along with this it will be registered in the Electronic Individual Insolvency Register (EIIR) and the DRO will come into effect. This would remain for a period of maximum 12 months. During this period the creditors cannot take any action to get back their dues. And in case, the debtors situation improves he needs to repay the amount. If not, after the said period, the debts are written off and the debtor is free of all the debts.

Bankruptcy in Gloucester

This is the solution that you can choose when your debts are high and you run the risk of loosing your home and properties. As it has drastic effect on the debtor that lasts for even up to a decade or more, this should be strictly opted for only you have no other option.
In this, the debtor applies for a Bankruptcy in the Court, which is then processed and a Trustee is appointed. He then takes over the listed assets of the debtor and creates a pool of it normally termed as an Estate. Once the court issues the notice to the effect, the Trustee then contacts the creditors and then after due process, the assets are put on auction and the proceedings there on is distributed among the creditors according to their percentage of debt.

Or otherwise the second option is that you would be given a certain period of time (usually 3 to 5 years) to repay part of your dues and the rest would be waived off. In this you would be allowed to retain your assets and properties.

The most negative aspect of a Bankruptcy is that it is declared publicly and published in all leading local newspapers in Gloucester and in United Kingdom. Everyone comes to know of it and the debtor faces serious mental and social trauma.
Depending upon your debt status you can opt for any of the above, but always remember that all these means are one type of Insolvency and thus they are sure to be recorded in the Insolvency Register and the Credit Scoring of the person is sure to be affected.

Before opting for any of the debt solution, consult with any of the experienced and authorized Debt Solution Advisories in your local area. These aside, there are many of them who provide online and on call consultations too. Most of them offer free consultation and charge you only when the process is initiated. There are many debt charities too. Check out for them and get the best advice for yourself and become a debt free person. Below are a few of the links that would lead to either a local or online consultancy services serving at Gloucester.

IVA & Debt Advice Gloucester is owned by McCambridge Duffy Insolvency Practitioners and can be contacted over free phone at 0800 043 0550, Email at, or over phone at 0800 043 0550, For more details log on to

The UK Insolvency Helpline is a National Level Helpline that can help the debtors in Gloucester to come out of their debts. For more details log on to or contact them over free phone on 0800 074 6918

The National Debtline is providing its services to the people of Gloucester too and they can be contacted at 0808 808 4000 and for online information log on to

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