Write off my debts

Can I write off my debts? Know your rights and the practical options available. Expert advice and managed debt solutions. Ivadebthelp, the leading UK debt charity.

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Is it possible to write off my debts?

The simple answer to this question is ‘yes’ you can easily write off your debts because there are some debt solutions which involve getting some or all of your unsecured debt written off.
These solutions are mostly used by the people who are unlikely to be able to afford to repay their debts in full within a reasonable time period.
But they will not be a suitable option for everyone who is struggling with their unsecured debts. And most of these solutions have fairly stringent qualifying criteria attached so, depending on your personal and financial circumstances, you may or may not be eligible to take advantage of them easily.
Other types of debt solution are also available which do involve repaying all your debts in full – albeit normally over a longer time period than was stipulated in the original credit agreement.

Things to be aware of?

You do need to be aware and kept in mind that any debt solution that doesn’t ultimately involve repaying all your debts in full is likely to have a more significantly adverse or bad effect on your credit rating, and make it much harder for you to obtain new credit in the future.
Also, in some cases, your details may be entered on a public register like in the Insolvency Register, and you may face restrictions on working in certain professions.
Choosing a best debt solution which results in some or all of your debts being written off may sound like an attractive option. This may not always be the best debt solution for your needs depending on your own financial situation and your plans for the future.

A quick summary for you-

Here is a quick summary of the most common UK debt solutions that can include getting some or all of your unsecured debts written off:

  • Individual Voluntary Arrangement (IVA): An individual voluntary agreement (IVA) is an agreement involving you and your creditors to help you pay off your debts at an reasonably priced. IVAs are no presented if you live in Scotland. In Scotland, you would require a protected Believe deed is a related solution, but it’s important to note that it has dissimilar profit, risk and charge associated with it.
  • Bankruptcy: Bankruptcy is a proper indebtedness route for individuals with unsecured debts that they cannot pay. Bankruptcy is often the last resort and can be used when no other alternate is suitable. Once you are made Bankruptcy you have a duty to provide information to the official receiver and the defender, and attend their office as and when required.
  • Debt Relief Order (DRO): A debt relief order (DRO) is a simple way to have your debts written off if you have a relatively low level of debt and have few assets. If you are able to qualify then our specialist DRO team can apply to the Insolvency Service for you. If you live in Scotland then Debt relief orders are not available for you. A DRO freezes your debt repayments and interest for 12 months.
  • Trust Deed (Scotland only): This is a best debt solution for you that can help you to avoid sequestration (bankruptcy) by allowing you to make regular affordable reduced debt repayments for a period that can be as short as four years. After this time, your all outstanding debts are written off. Once creditors accept a Trust Deed proposal, interest and other charges on those unsecured debts they all are frozen.
  • Short (or Full & Final) Settlement: This could be a suitable debt solution for you all if you have access to a lump sum of money, but little or no disposable income with which to make your regular debt repayments. With a settlement of this, you offer to pay your creditors a lump sum amount of money which may be less than the full amount of your outstanding debt to them. In return, they agree to write off all or part of your remaining debt within a period of time.

Struggling with debts? Contact us today!

If you’re struggling with debts, contact us to find out about a wide range of practical debt solutions that help people deal with their debts and get on with living their life.
The best way to find out what makes us different is to call us free on 0203 687 1054 and have a chat with one of our fully trained advisors.
They’ll listen to you and talk about you, your life, your debt and your aspirations. You’ll find them understanding of your situation and helpful in your search for a solution that’s right for you.
Call us today on 0203 687 1054 for confidential, no obligation debt help and advice.

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