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Frequently Asked Questions

If your personal budget does not stretch to paying your past debts as well as day-to-day expenses, there are a number of alternatives available to you, these could include one of the following. When you contact Resolve we will review all your available options.

We can help you RESOLVE your problem by giving free, best advice, which is tailor made for your situation.

Administration Orders

Made by a county court. One or more of your creditors must have a court judgment against you and your total debts must be 5000 or less.

Debt Relief Orders

To qualify you must be unable to pay your debts, owe less than £15,000 and your assets must be worth less than £300. You must also have less than £50 per month disposable income, after paying normal living expenses.

Informal Arrangement or Debt Management Plan (DMP)

You could consider writing to all your creditors to see if you can reach a compromise or instruct a third party to set up a DMP
A DMP is a non-statutory arrangement between you and your creditors where you pay off your debt in full over an extended period. While DMPs are heavily promoted in the media, you should be cautious where you seek help as many of the organisations are not independently regulated and agreements reached with creditors are not permanently binding.

Individual Voluntary Arrangements? (IVAs)

An IVA is a private legal agreement, whereby, you pay your creditors a set amount each month that you can afford and the rest of the debt is written off. It's most appropriate for those who have debts of more than £10,000 and cannot afford to meet repayments, who see missed payment charges incurred, interest increasing and their debt spiralling. Normally lasting five years, the agreement covers all of your unsecured debts, including loans, credit cards, catalogues, store cards, overdrafts etc.

What Is Debt Consolidation?

Debt consolidation is a loan taken out with a finance company, and used to pay off other debts.

What Is A Pro-rata Arrangement (Self Help)

A process of negotiating reduced payments with your creditors, based upon your disposable income.

Bankruptcy?

Bankruptcy is one way of dealing with debts you cannot pay. Becoming bankrupt is a very difficult decision and it should only be taken as a last resort. The bankruptcy proceedings:

  • free you from overwhelming debts so you can make a fresh start, subject to some restrictions, and
  • make sure your assets are shared out fairly among your creditors.

Once you are made bankrupt you have a duty to provide information to the official receiver and the trustee, and attend their office as and when required.

What Is My Disposable Income?

Disposable income is the difference between your nett household income and all necessary living costs.

What Are Debt Management Companies?

Debt managements companies (DMA's) are organisations who will charge a fee for negotiating reduced payments with your creditors based upon what you can afford to pay. DMA's generally take your first payment as a set up fee, and then make a further monthly management charge

Will Resolve UK Charge Me A Fee For Their Services?

No Our services are entirely free of charge.

What Is A Trust Deed?

The Laws in Scotland differ from those of the rest of the UK. A 'Trust Deed' is a similar arrangement to an IVA, but the duration is for 3 years only.

We will give advice on

  • Debt management
  • Individual Voluntary Arrangements (IVA's)
  • Pro-rata arrangements (Self Help)
  • Bankruptcy etc.

TELEPHONE: +44 (0)1732 365380
7 days a week 8am-8pm