Debt Solutions

Debt Solutions include Individual Voluntary Arrangement, Debt Management Plan, Debt Relief Order and Bankruptcy.

Contact Us
/en-gb/services/restructuring-advisory/debt-solutions /-/media/feature/services/restructuring-advisory-kroll-uk/debt-solutions-desktop-banner.jpg service

Debt Solutions Are as Follows: 

  • Individual Voluntary Arrangement (IFA)
  • Debt Management Plan
  • Debt Relief Order (DRO)
  • Bankruptcy
  • Informal Arrangement

1. Individual Voluntary Arrangement

  • Legally binding agreement between you and your creditors
  • Prevents further legal action against you by creditors
  • Avoids stigma and restrictions of bankruptcy
  • Propose to pay an affordable monthly amount (within guidelines) for up to five years
  • Interest and charges on unsecured debt is frozen
  • You may be able to keep your home
  • You may be able to continue your business
  • Your IVA will be approved by creditors if more than 75% vote for acceptance
  • Upon successful completion of the term of your arrangement, the balance of your debts will be written off

2. Debt Management Plan

  • Informal agreement negotiated with creditors
  • Monthly management fee
  • One reduced monthly payment
  • Longer repayment term
  • Interest and charges may or may not be frozen
  • Not legally binding
  • Suitable for lower levels of debt (<£20,000)
  • Must have disposable income

3. Debt Relief Order

Similar to Bankruptcy but suitable if you:

  • Owe less than £15,000 in total to your creditors
  • Own assets worth less than £300 (excluding a motor vehicle with a value of £1,000)
  • Have less than £50 per month disposable income
  • The DRO will last for 12 months
  • The cost to apply is £90
  • You must not have had a prior DRO within six years

4. Bankruptcy

  • Legal process where bankruptcy order is made
  • Trustee appointed to control your assets and deal with your estate
  • Interest and charges are frozen on unsecured debts- direct payments cease
  • Ownership of your assets passes to the Trustee (including your home)
  • Assets will be sold to raise money to pay to your creditors
  • If you have disposable income per month, you may be required to make payments for up to three years
  • Bankruptcy may impact on your occupation if you are e.g., a company director, accountant, solicitor, etc.
  • Your bankruptcy may be announced in the local paper
  • Bankruptcy will usually last for 12 months
  • The cost to petition for your own bankruptcy is approximately £500

Connect with us

Sarah Bell is a managing director at Duff & Phelps.
Sarah Bell
Managing Director
Restructuring
Manchester
Phone
Steve Muncaster is a managing director at Duff & Phelps.
Steve Muncaster
Managing Director
Manchester
Phone
Matt Ingram
Matt Ingram
Managing Director
Restructuring
Birmingham
Phone
Paul Williams
Managing Director
Restructuring
London
Phone

See all servicesStay Ahead with Kroll

Valuation

Valuation of businesses, assets and alternative investments for financial reporting, tax and other purposes.

Compliance and Regulation

End-to-end governance, advisory and monitorship solutions to detect, mitigate and remediate security, legal, compliance and regulatory risk.

Corporate Finance and Restructuring

Middle Market M&A, Strategic Advisory, Debt Advisory and Private Capital Markets, Restructuring and Insolvency Services, Financial Due Diligence, Fairness Opinions, Solvency Opinions and ESOP/ERISA Advisory.

Cyber Risk

Incident response, digital forensics, breach notification, managed detection services, penetration testing, cyber assessments and advisory.

Environmental, Social and Governance

Advisory and technology solutions, including policies and procedures, screening and due diligence, disclosures and reporting and investigations, value creation, and monitoring.

Investigations and Disputes

World-wide expert services and tech-enabled advisory through all stages of diligence, forensic investigation, litigation, disputes and testimony.

Business Services

Expert provider of complex administrative solutions for capital events globally. Our services include claims and noticing administration, debt restructuring and liability management services, agency and trustee services and more.