Write off Debt - Writing off Debt

  • UK Debt AdviceCan I write off my debts?
  • How do you write off debts?

The above are two of the most common questions we get asked by consumers who are struggling with and trying to write off personal debt problems.

Adverts in the general media for debt consolidation help & debt management services are fairly compliant about debt write off and it is only online that we see a massive number of false claims stating to be able to write off your debt in 24 hours! Or, even offering you a debt free future after one consultation!

  • The only compliant way to write off debt is to explore a potential debt solution that offers such an outcome.

The following are current and available personal debt solutions that offer the benefit of being able to write off debt totally or write off a proportion of the total debt that you owe. Try our debt solution finder today!

Bankruptcy - Bankruptcy is the only way to write off the majority of unsecured debt that you owe but you have to be in a position where you cannot afford to repay the unsecured personal debt within a reasonable period of time. If you own a home it can add further complications to the procedure and even if declared bankrupt, you will still be asked to repay something monthly as a contribution back to your creditors and this can last a minimum of 3 years and in certain cases upto 15 years. Take our bankruptcy test today!

Sequestration - Sequestration is the Scottish equivalent to Bankruptcy and has slight differences.

IVA - IVAs or Individual Voluntary Arrangements offer the ability to clear your debts in 60 months or 5 years and then write off debt that is still outstanding and remaining unpaid after the 60 month period.  For example, if you owed £30000 and paid £300 per month over 60 months, you would have repaid £18000, the remaining £12000 is then written off by your creditors at the end of the IVA repayment period. This equates to 40% of your debt being written off! Some adverts claim you can write off debt you cannot afford, this is true but very creative in the marketing approach. Others claim to be able to write off 80-90% of your debt which is possible in extreme cases but not very regular based on the number of IVAs entered into.

However, if you are a homeowner, you could be required to release equity from your home if there is any and these funds will be made available to the creditors to increase your Individual Voluntary Arrangement contribution back to your creditors. Take our IVA test today!

Trust Deeds (Scotland Only) - A Trust Deed in Scotland is the Scottish Equivalent to an IVA; however, it only lasts for 36 months or 3 years. Take our Trust Deed test today!

Debt Solution Finder

Debt Relief Orders - A Debt Relief Order (England & Wales) will also write off the debt you cannot afford to repay but this only lasts for 12 months, it is like a mini IVA. The debtor must owe less than £15000 and must not have any assets worth more than £300. You must also be unable to contribute more than £50 per month towards unsecured personal debts and credit commitments. See if you qualify for a Debt Relief Order today!

Full and Final Settlements or Settlements in Full and Final - Full and final settlements are a “debt write off” solution but amounts settled and written off for consumers vary greatly from one lender to another. The amounts written off differ based on outstanding balances and terms of the original agreements entered into. You simply come to an agreement with your creditor to repay so many pence in the pound that you owe them. For example, if your balance outstanding was £5000 and you offered £2500 to clear the account in full, the creditor would be accepting 50 pence back against every pound you still owe to them and in turn would be writing off 50% of your outstanding debt. Full and Final Settlements are often achieved by people who are able to obtain and qualify for Debt Consolidation Loans.

Unenforceable Credit Agreements - Unenforceable credit agreements also write off debt but you must check to see if yours is one of them.

Debt Management Plans - Standard and commercial Debt Management Plans do not offer you the ability to write off debt and it is only if you come into some extra funds or a lump sum that you would be able to offer a settlement in full and final to your creditors. See if you qualify for a debt management plan today!

If you are struggling with personal debt problems and feel you would benefit from our debt help and assistance regarding how to write off debt, please contact our debt helpline today in absolute confidence.

  • Call 0800 018 6868
  • Lines are open 24 hours / 7 days
  • (calls are usually free from a UK land line)


Bankruptcy
Debt Management
Insolvency or IVA
Debt Consolidation
Trust Deeds
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