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Privacy Policy
Our contact details
Name: Gariox Ltd
Address: 61 Bridge Street, Kington, HR5 3DJ
The type of personal information we collect
The information/data that we collect from you may include the following details:
How we get the personal information and why we have it
The personal information we process is provided to us directly by you for one of the following reasons:
We use the information to help you with your enquiry.
We may share this information with:
Our trusted affiliate marketing company (Leadfix Limited) and their debt solution partners so that they can provide you with debt counselling advice and deal with your enquiry.
Our regulators, such as the Information Commissioner’s Office or any other regulatory body or authority may request certain information as part of supervising us. We have a legal or regulatory obligation to provide this.
We may also share your information with:
IT Service Providers who provide IT platforms or other IT services
Communication providers (e.g. telephone line providers, and email and text service providers)
These companies help us to provide our services to you. We may also share your personal information where we have your consent to do so or if required to do so under a legal or regulatory obligation.
Under the General Data Protection Regulation (GDPR), the lawful bases we rely on for processing this information are:
(a) Your consent.
You can remove your consent at any time. You can do this by contacting info@leadfix.co.uk
(b) We have a contractual obligation.
Your personal data will also be processed as we need this information to fulfil our obligations under the contract we have entered into with you in order to introduce you to our debt solution partner to provide you with debt counselling advice.
(c) We have a legitimate interest. We have a legitimate interest in processing your data (i.e. to share your debt enquiry with our debt solution partner) to obtain debt counselling advice.
We will also use this information to contact you about and process your enquiry, for example, sending you an email or text message.
We are required to process your personal information where we have a legal or regulatory obligation to do so, for example, to adhere to anti-money laundering or our regulatory obligations
If you make an enquiry or complaint with us, we will use your personal information to investigate the complaint and deal with your enquiry. We have a legal obligation to deal with your complaint appropriately.
How we store your personal information
All personal information we hold is securely stored and we conduct our services through computer systems. If at any time we believe there has been a breach of your personal data, we will notify you immediately.
We will keep information provided by you during the application process, including your contact information (such as name, email address and telephone number), debt amount, residential status, Number of debts, Employment Status, What you can afford to pay for only as long as necessary to fulfil the purposes for which it was collected. Personal information that is no longer required will be destroyed, erased or made anonymous, although copies of deleted information may continue to exist on back-up media but will not be used unless permitted by law.
Cookies
This section sets out our use of Cookies when you use our sites. Please read it carefully as it explains how we and third parties may make use of your data collected by such Cookies. If you wish to understand how we make use of your data, more generally please refer to section 8.
We use a single first party cookie, named 'PHPSESSID'. This cookie is vital for the operation of the website, as it allows us to track different page loads to yourself, which allows the form and application process to work.
To find out more about accepting or refusing cookies please visit www.allaboutcookies.org.
We also use Google Analytics to collect non-personally identifiable information, in aggregate form, to understand website/page visit volumes in terms of source, geography, browser, etc.
Google Analytics employs a software technology called web beacons, that help us better manage content on our site by informing us what content is effective. Web beacons are tiny graphics with a unique identifier, similar in function to cookies, and are used to track the online movements of Web users or responses to emails. In contrast to cookies, which are stored on a user's computer hard drive, web beacons are embedded invisibly on Web pages and are about the size of the period at the end of this sentence. Web beacons cannot be disabled in same manner as cookies may. We do not tie the information gathered by web beacons to our customers' personally identifiable information.
Google Analytics is a simple, easy-to-use tool that helps website owners measure how users interact with website content. As a user navigates between web pages, Google Analytics provides website owners JavaScript tags (libraries) to record information about the page a user has seen, for example the URL of the page. The Google Analytics JavaScript libraries use HTTP Cookies to "remember" what a user has done on previous pages / interactions with the website.
Important: Read the Google Analytics privacy document for more details about the data collected by Google Analytics.
Google Analytics supports three JavaScript libraries (tags) for measuring website usage: gtag.js, analytics.js, and ga.js. The following sections describe how each use cookies.
We use the "visitor action pixels" from Facebook Inc (Facebook Ireland Ltd., 4 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland ("Facebook")) on our website.
This allows user behaviour to be tracked after they have been redirected to the provider's website by clicking on a Facebook ad. This enables us to measure the effectiveness of Facebook ads for statistical and market research purposes. The data collected in this way is anonymous to us, i.e. we do not see the personal data of individual users. However, this data is stored and processed by Facebook, which is why we are informing you, based on our knowledge of the situation. Facebook may link this information to your Facebook account and also use it for its own promotional purposes, in accordance with Facebook's Data Usage Policy https://www.facebook.com/about/privacy/. You can allow Facebook and its partners to place ads on and off Facebook. A cookie may also be stored on your computer for these purposes.
The legal basis for the use of this service is Art. 6 paragraph 1 sentence 1 letter f GDPR. You can object to the collection of your data by Facebook pixel, or to the use of your data for the purpose of displaying Facebook ads by contacting the following address: https://www.facebook.com/settings?tab=ads.
Facebook is certified under the Privacy Shield Agreement and thus guarantees compliance with European data protection legislation (https://www.privacyshield.gov/participant?id=a2zt0000000GnywAAC&status=Active).
On our websites functions of the service Instagram are embedded. These functions are offered by the Instagram Inc., 1601 Willow Road, Menlo Park, CA, 94025, USA. If you are logged in to your Instagram account, you can link contents of our websites to your Instagram profile by clicking the Instagram button. By this ,Instagram will associate the visit of our websites with your user account. We would like to point out that we, as providers of these websites, do not obtain knowledge about the contents of transmitted data as well as their use by Instagram.
For further information, please review the Privacy Policy of Instagram: http://instagram.com/about/legal/privacy/
On our website, we use the Conversion Tracking Service of Twitter Inc. (1355 Market Street #900, San Francisco, California 94103, "Twitter"). Twitter stores a cookie on the user's computer to enable an analysis of the use of our online products and services. Twitter Conversion Tracking tracks the actions of users after they have viewed ads or interacted with ads on Twitter. Twitter's Conversion Tracking allows you to assign conversions such as link clicks, retweets or "like" data.
The legal basis for the use of this service is Art. 6 paragraph 1 sentence 1 letter f GDPR. If you wish to object to tracking, you can do so using the Digital Advertising Alliance tool at optout.aboutads.info.
Twitter is certified under the Privacy Shield Agreement and thus guarantees its compliance with European data protection legislation: (https://www.privacyshield.gov/participant?id=a2zt0000000TORzAAO&status=Active)
You can block cookies by activating the setting on your browser that allows you to refuse the setting of all or some cookies. Please note that by disallowing cookies some functionality on the site may be restricted.
Your Data protection rights
Under data protection law, you have rights including:
Your right of access - You have the right to ask us for copies of your personal information.
Your right to rectification - You have the right to ask us to rectify personal information you think is inaccurate. You also have the right to ask us to complete information you think is incomplete.
Your right to erasure - You have the right to ask us to erase your personal information in certain circumstances.
Your right to restriction of processing - You have the right to ask us to restrict the processing of your personal information in certain circumstances.
Your right to object to processing - You have the the right to object to the processing of your personal information in certain circumstances.
Your right to data portability - You have the right to ask that we transfer the personal information you gave us to another organisation, or to you, in certain circumstances.
You are not required to pay any charge for exercising your rights. If you make a request, we have one month to respond to you.
Please contact us at info@leadfix.co.uk if you wish to make a request.
How to complain
If you have any concerns about our use of your personal information, you can make a complaint to us at [Insert your organisation’s contact details for data protection queries].
You can also complain to the ICO if you are unhappy with how we have used your data.
The ICO’s address:
Information Commissioner’s Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF
Helpline number: 0303 123 1113
ICO website: https://www.ico.org.uk
Terms & Conditions
Our Terms
What follows below are important points which You need to know about nationaldebthelp.uk & gariox ltd and the service we provide. We request that You read the following terms and conditions prior to using this iframe form to ensure that You are satisfied with the service We can offer You.
If, after reading Our terms and conditions, You do not agree with the content then We request that You do not use Our service.
Definitions
"Terms" means these terms and conditions;
"Users" means the users of the Website collectively;
"User Information" means the details provided by You on any application via the Website;
"We/Us/Our" means NationalDebtHelp.uk / Gariox Ltd;
"Website" means the Website or any subsequent URL which may replace it which is used to access Our form;
"You/Your/Customer" means a user of the Website.
"Service" means the process in which NationalDebtHelp.uk / Gariox Ltd refers your enquiry to a debt solutions provider.
"Provider" means the third party company who may provide You with a debt solutions service.
About us
Nationaldebthelp.uk is a trading name of gariox Ltd. gariox Ltd is licenced by the Information Commissioners Office, (Registration Number ZA743684), Registered in the UK, number 12539705. Registered Office Address: 61 Bridge Street Kington HR5 3DJ.
Our service
We are not a provider or advisor for debt solutions and therefore We will not provide solutions or advice directly to You; We provide an online referral service, We will introduce You to Providers of Debt Solution services. By submitting an enquiry through Our Website You will be giving Your consent for nationaldebthelp.uk to pass your details to one of the Debt Solution Providers on Our panel. We will present Your enquiry in real time to one or more of Our Providers. It is important to understand that We may be paid a fee by the Provider for introducing You to them. There is no obligation for You to take up the service with them. You should read their conditions carefully and make a responsible decision on whether You believe their service is right for You. If You have any questions or are unsure You should contact the Provider before taking out any service with them.
Any examples of solutions stated on the Websites are purely given as a representative example relating to some of the solutions that may be available. There is no guarantee that all/any solutions will apply to your circumstances. We have no control over the decision making.
The Provider will conduct an assessment of your circumstances before providing potential solutions.
Customer checks & referencing
Upon confirmation to proceed, the Provider may use both fraud prevention and credit referencing agencies to help make relevant decisions. Credit checks and credit reference agencies can also help prevent fraudulent applications so We ask You to agree to using data provided for the purpose of preventing fraud and ensuring that Your identity is protected.
Information provided by You must always be true and accurate, as misleading information will be regarded as a breach of Our terms and is likely to breach any agreement You have entered into with a Provider. Misleading information may also result in the instigation of criminal procedures against You.
Information about You (including Your visits to the Website)
We will only process information about You in accordance with the privacy policy.
When You use Our website and form You consent to us processing Your personal information and therefore warrant that all information/data provided by You is accurate and correct.
Communication
Unless stated otherwise We may contact You via means of telephone, SMS, WhatsApp, post or email to provide information and alerts relating to Your enquiry.
Intellectual property rights
The copyright and material on this website & form is owned by nationaldebthelp.uk and is protected by the copyright and trademark laws of the United Kingdom. You are permitted to copy any such information for Your own personal use but may not republish, store or reproduce any such information in any manner, including but not limited to electronic reproduction, without the prior written consent.
Any unauthorised downloading, retransmission, or other copying or modification of any of the contents of this form may be in breach of statutory or common law rights which could be the subject of legal action. Nationaldebthelp.uk disclaims all liability which may result from any unauthorised reproduction or use of the information on this form.
Liability
We cannot guarantee that the Provider will offer a solution. This may be as a result, directly or indirectly, of a systems problem, issues which are unforeseeable or outside of Our control or that of the Providers, or because information has been provided incorrectly. Accordingly, We shall not be liable for any loss You may suffer unless We have been negligent or not acted in accordance with these Terms and Conditions or unless otherwise required by UK law. In the event that You do not use this form with reasonable care and in accordance with these terms and conditions or We discover or are notified that You are using this form fraudulently, We, and or, the Provider reserve the right to charge You for any reasonable costs that We may incur in taking action to stop You using the form and recover any monies owed as a result of Your activities.
Compliance
The form may only be used for lawful purposes and in a lawful manner. You agree to comply with all applicable laws, statutes and regulations regarding the Form and its use. You agree not to upload or transmit through the form: any computer viruses or anything else designed to interfere with, interrupt or disrupt the normal operating procedures of a computer; and any material which is defamatory, offensive or of an obscene character.
Jurisdiction
The website & form is controlled and operated in the United Kingdom. These Terms and any non-contractual obligations arising out of or in connection with these Terms will be governed by the laws of England and Wales and You irrevocably agree to submit to the exclusive jurisdiction of the English courts.
Complaints
We endeavor to make every effort to ensure Our service to You is excellent; however, if You wish to make a formal complaint, please send Your complaint via email or by writing to the following address: Email us at or write to: The Compliance Manager, Gariox Ltd, 61 Bridge Street, Kington, HR53DJ.
Our Intentions:
Gariox Ltd (‘company’) is committed to abiding by all relevant legislation relating to marketing and advertising. This Policy provides guidance on how we will meet our objectives to ensure that our advertisements are clear, fair and not misleading.
How We Will Do This:
When providing information to customers the company will:
•Pay regard to its target market
•Act with professional diligence
•Take account of what information the customer needs to understand the product or service, its purpose and the risks, and communicate information in a way that is fair, clear and not misleading
The company will not:
•Make any untrue claims
•Omit any matters that cause the promotion to be unclear, unfair or misleading
•Display any logos or trademarks without necessary permission
•Mislead customers to the availability of a product or service
Information can take many forms including:
•Marketing brochures and literature
•Web content
•Email marketing
•Social media
INDIVIDUAL VOLUNTARY ARRANGEMENT
An IVA is a statutory contract which is legally binding between you and your creditors - you make an affordable payment each month for a set period, normally 5 years, and providing you keep to the arrangement your creditors will write off the rest of your debts at the end.
CRITERIA INCLUDING TYPES OF DEBTS
• You have more than £5,000 of unsecured debt.
• That you have 2 or more different creditors.
• After paying all your essential living expenditure you have a surplus income of at least £85.
• Acceptance of an IVA is decided by your creditors. For an IVA to be accepted, more than 75% of the voting creditors by debt value must approve, therefore any single creditors with 25% or more of the overall debt level must not reject the IVA for it to proceed.
• Arrears on household bills such as rent (but NOT mortgage arrears), gas, electricity, telephone and council tax can be included in your IVA, as well as consumer debts such as an overdraft, credit card or loans. Outstanding VAT, Inland Revenue debts, hire purchase or conditional sale agreements, Items brought on finance and loans from friends and family can also be included in your IVA, but if you wish to keep goods which are subject to HP agreements, you must continue to pay the monthly amounts due.
• You are responsible for maintaining payments on your essential bills, including rent or mortgage and Council Tax. Court fines, student loans, mortgage arrears or money owed under family court proceedings cannot be included in the IVA and you are responsible for maintaining payments. These payments will be considered when calculating your disposable income.
COST
• No upfront fees are charged. There are Nominee’s fees and Supervisor’s fees. These fees are deducted from your agreed monthly contribution.
• If your IVA failed, the Nominee’s fees and Supervisor’s fees would be included as a debt and your creditors may back date any interest or charges accruing on your debts.
ADVANTAGES
● An IVA is a statutory contract, therefore providing legislative protection from creditors and any legal action they may otherwise pursue.
● An IVA is a way to avoid bankruptcy proceedings and property repossession.
● An IVA consists of one affordable monthly contribution.
● All interest and charges will be frozen upon acceptance.
● Creditor contact is forbidden (other than annual statements).
● Debts included in your IVA could be cleared in 5 years.
● The time frame is set at the outset, this will only be subject to change should your circumstances improve or worsen.
● No upfront fees are charged, and the Nominee’s and Supervisor’s fees are deducted from your agreed monthly contribution.
● Homeowners will usually be able to keep their homes, provided they maintain the mortgage payments and other loans secured against their property.
● Once you have made your agreed final contribution into the IVA any remaining debt is written off.
DISADVANTAGES AND RISKS
● Acceptance of the IVA lies with the creditors. Should this be rejected, alternative solutions will need to be re-investigated with a qualified debt advisor.
● Your credit rating will be adversely affected throughout your IVA and usually, for an additional year after completion.
● There are restrictions on the expenditure of a person who enters into an IVA.
● Entering into an IVA will be entered on the Individual Insolvency Register.
● At the start of an IVA an assessment of your income and expenditure items are taken and thereafter reviewed annually. Creditors will require evidence should certain items be considered excessive and if suitable proof cannot be supplied, you will need to reduce your spending in those areas. Average increases in household living expenses will be taken into account during this review.
● Homeowners entering into an IVA should be aware that they will be expected to introduce 85% of available equity six months prior to the end of the arrangement. Due to credit scoring it may be that the terms of such an arrangement are less favourable and remortgaging may result in a higher interest rate. It could also mean that releasing equity is restricted completely and, in protocol compliant cases, the IVA can be extended by a further 12 months.
● Any windfalls over and above £500 are to be introduced into the IVA for the benefit of the creditors; any remainder after the debt has been cleared in full will be paid back to you.
● To obtain credit over and above £500 you must first get written permission from your insolvency practitioner, unless the credit if or public utilities such as water, gas or electricity.
● You may be asked to downgrade or sell any high value assets.
● Any debts that can’t be included in the IVA, will be your responsibility to pay, for example court fines, student loans or money owed under family court proceedings.
● Only unsecured debts included within the IVA may be discharged at the end of the period and unsecured debts not included remain outstanding.
● Creditors have the right to challenge the IVA within 28 days of the approval date on any material irregularity or unfair prejudice.
● Should the IVA fail, creditors may back date interest on your debts or may request your Supervisor petition for your bankruptcy.
● Entering into an IVA is a statutory contract which would require you to obey the terms of the IVA. Failure to do so could mean that the Supervisor may petition for your bankruptcy or terminate the IVA (which would leave the creditors free to pursue the debts).
DEBT MANAGEMENT PLAN
A Debt Management Plan (DMP) is an informal debt restructuring solution for unsecured debt. DMPs are provided by debt management companies and charitable organisations who could negotiate with your creditors to try to get them to accept the lower repayments and freeze any further interest that might otherwise be added to your current debt.
CRITERIA INCLUDING TYPES OF DEBTS
● You have unsecured debts that you can’t afford to repay.
● You have one or more creditor.
● You have a surplus income every month.
● Arrears on household bills such as rent, gas, electricity, telephone can be included in your DMP, as well as consumer debts such as an overdraft, credit card or loans.
● Hire purchase or conditional sale agreements and items bought on finance may be included in your DMP depending on the amount you have paid towards the items and the terms of the agreement.
● You are responsible for maintaining payments on your essential bills.
● Certain types of debt will not be included in the DMP. You will be responsible for paying taxes, fines, child support payments and debt which could result in loss of access to essential goods or services or repossession of, or eviction from your home. The payments towards these debts will be considered when calculating your disposable income.
COST
● There is an option to pay a fee for this service with a debt management company or you can seek advice and/or assistance from the free sector, such as a charitable organisation.
● Commercial Debt Management Companies charge a fee for their service. They should be taking no more than 50% of your payment for the first 6 months as a fee to set up the plan, and no more than 50% of your payment to administer the service for you from month 7 onwards.
● There are charitable organisations that administer DMP’s free of charge. The Money Advice Service provides details of organisations that provide free debt advice and services. For more information visit https://www.moneyadviceservice.org.uk
ADVANTAGES
● A DMP is an informal arrangement that avoids the need for formal insolvency procedures such as an IVA or bankruptcy.
● You make one monthly payment.
● By reaching agreement with your creditors, a DMP may suspend actions against you such as County Court Judgements.
● Creditors will, in many cases, freeze interest and charges.
● Your monthly debt repayments will be reduced to make them affordable.
● The service can be provided free of charge.
● You can cancel your DMP at any point.
DISADVANTAGES AND RISKS
● The arrangements are informal and are not legally binding so creditors could, if they choose, add interest and charges, or pursue other recovery action such as court action. They could also change their mind at any point.
● The time it takes to set up such a plan could result in accounts falling into arrears or increasing in arrears.
● Your credit rating may be harmed. A DMP means you are making a reduced payment to your creditors and although this has been agreed to by your creditors it will still be noted on your credit file. Your credit file will be affected for a further 6 years after your last DMP payment.
● Someone entering a debt management plan will be expected to live within a controlled budget.
● While such arrangements reduce your monthly repayments to make them affordable, it usually means you will pay more in total over a much longer period.
● Interest or charges could be added to your debt, which means the total debt to repay will be higher, and depending on your level of payment, it could make the duration of the plan longer.
● Unless your level of debt is less serious you could end up in debt for a very long time. In the worst case you may find you have no real prospect of getting out of debt and becoming debt free.
● You must maintain payments to your essential bills. You are responsible for paying taxes, fines, child support payments and debt which could result in loss of access to essential goods or services or repossession of, or eviction from your home.
● Creditors may take further action to recover the debt which may involve additional costs or charges. If a creditor has already commenced recovery or legal action, there is no guarantee that it will be suspended or withdrawn.
● If you are a homeowner, creditors may seek a charging order to secure their debt against your property.
● Money Advice Service can put you in contact with charitable organisations who will administer your DMP free of charge, however there are commercial organisations who will charge a fee. The fee will result in you repaying your debt for a longer period.
DEBT RELIEF ORDER
A Debt Relief Order (DRO) is a formal insolvency process that can help you deal with your debts if you owe less than £20,000, don’t own your home and have little spare income. DRO’s are an alternative debt solution to bankruptcy and usually last one year. Once you are in a DRO creditors are unable to recover their money without permission from the courts. Once discharged from your DRO, all the debts listed in your DRO will be cleared.
CRITERIA INCLUDING TYPES OF DEBTS
● You are unable to pay the debts you owe.
● You have £50 or less spare income each month (after normal household expenses).
● You must owe less than £20,000.
● You must not be a homeowner.
● You have less than £1,000 worth of assets (this excludes a car which you also own, if its value is less than £1,000).
● You have not had a DRO in the past six years and are not in another formal insolvency procedure.
● You have lived or worked in England, Wales or Northern Ireland for the past three years.
● Arrears on household bills such as rent, gas, electricity, telephone and council tax can be included, as well as consumer debts such as an overdraft, credit card or loan. Hire purchase or conditional sale agreements, items brought on finance and loans from friends and family can also be included in your DRO.
● Criminal fines, student loans, child maintenance service arrears, TV licence arrears, Social Funds loans or damages for personal injury ordered by a court cannot be included in a DRO.
COST
● The cost of a DRO is £90.
● Intermediaries are not allowed to charge you a fee for submitting your DRO application to the Insolvency Service.
ADVANTAGES
● You could clear your debt in a year.
● The cost of a DRO is much cheaper than bankruptcy.
● You won’t need to pay anything towards your debts for 12 months and after that your debt will be written off.
● A DRO is a formal procedure but the courts won't be involved in the process.
● Your creditors can't take any action over the money you owe.
DISADVANTAGES AND RISKS
● A DRO will stay on public record (Individual Insolvency Register) for 15 months and your credit record for six years.
● You'll be expected to pay back creditors if your financial situation improves.
● You can't get credit over £500 without telling the lender you have a DRO.
BANKRUPTCY
Bankruptcy is a formal insolvency route for individuals with serious debts that they cannot pay. Bankruptcy is a court driven process. 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.
CRITERIA INCLUDING TYPES OF DEBTS
● You are in financial difficulty and your situation is unlikely to improve.
● You don’t have many belongings of value and you have little or no equity in your home.
● There is no minimum amount that you must owe.
● A creditor can apply to make you bankrupt if you owe them more than £5,000.
● You live or carry out business in England or Wales, or you have done so at any point in the last three years and live permanently in another European state (apart from Denmark).
● Magistrates court fines, any payments a court has ordered you to make under a confiscation order, maintenance payments and child support payments, student loans, secured loans, Social Fund loans, some benefits and tax credit overpayments cannot be included in the bankruptcy. Debts you owe because of the personal injury or death of another person will normally be excluded from your bankruptcy, although you can ask the court to order that you don’t have to pay them.
● Bankruptcy will not stop your mortgage lender from taking steps to repossess your home if you are behind on your mortgage. If your home is repossessed and sold but doesn’t raise enough money to pay off your outstanding mortgage or any other debt secured on it, the remaining debt will no longer be secured. This means you’ll be released from it at the end of your bankruptcy. You’ll also be released from it even if your home is sold at any time after your bankruptcy has ended.
● Debts obtained by fraud are excluded from bankruptcy, although your creditors can’t chase you for payment while you are bankrupt.
COST
● This is dependent on if you are applying for bankruptcy yourself or if someone you owe to applies to make you bankrupt. If a creditor applies to make you bankrupt, then there will be no upfront fees. If you apply for your own bankruptcy the following fees will apply:
In England and Wales:
The bankruptcy deposit is £550; and
The adjudicator fee is £130.
In Northern Ireland:
The court fee is £115 (depending on your circumstances the court may waive the fee);
The bankruptcy deposit is £525; and
A solicitor’s fee, which is normally £7.
ADVANTAGES
● The experience isn’t usually as traumatic as it is perceived to be by the public in general.
● Most debt is written off and you gain a degree of freedom and a certain peace of mind.
● There will be no further creditor contact.
● You can keep basic possessions and the tools of your trade if you are self-employed.
● Once the bankruptcy period has come to an end, all debts are written off.
● Depending on your circumstances you may be debt free in 1 year.
● If you live in rented accommodation and you are up-to-date with your rent, you will be able to continue paying the rent. You have little to lose and ALL your debts will be written off at the end of the bankruptcy period.
DISADVANTAGES AND RISKS
● If you apply to make yourself bankrupt, there are fees.
● All your assets, apart from those required for a basic standard of living, will be sold.
● This is likely to, after a year, include your house.
● You will not be allowed to obtain more than £500 credit unless you first disclose that you are bankrupt.
● There are restrictions on the expenditure of an undischarged bankrupt and any income you have in excess of that needed for your basic needs will have to be paid to your creditors.
● Only unsecured debts included in the bankruptcy will be discharged at the end of the bankruptcy.
● Your job may be at risk: certain trades and professions will not allow you to work when bankrupt.
● Your credit rating will be affected (probably for some time after your bankruptcy ceases) and there may be other restrictions, such as having your bank and credit card accounts closed.
● Your bankruptcy will be advertised online and in the London Gazette.
● You will face uncertainty over lenders providing funds in the future after bankruptcy.
● If you are a tenant, you are unlikely to lose your home unless your tenancy agreement states you cannot rent the home if you are bankrupt.
● Once declared bankrupt your name and bankruptcy details will be published in the Individual Insolvency Register.
● Ensure you have enough cash for day to day expenses because once a bankruptcy order is made your accounts will usually be frozen.
● Being declared bankrupt would mean any application made for British citizenship, or to bring dependants to this country, would be likely to fail.
PROTECTED TRUST DEED PTD
A Protected Trust Deed is a legal arrangement between you and your Creditors which gives you protection from Creditors taking action against you to recover debts. You make an affordable payment each month for a set period, normally 4 years, and providing you keep to the arrangement your creditors will write off the rest of your debts at the end.
CRITERIA INCLUDING TYPES OF DEBTS
• You have more than £5,000 of unsecured debt.
• That you have 2 or more different creditors.
• In order for your Trust Deed to gain ‘protected’ status, your creditors must approve it, and there is always a risk that they might not vote to approve it. However, they don’t all need to vote in favour of the Trust Deed. You need a majority of your creditors to agree, and for those who object to own less than one-third of your debt.
• Arrears on household bills such as rent (but NOT mortgage arrears), gas, electricity, telephone and council tax can be included in your Trust Deed, as well as consumer debts such as an overdraft, credit card or loans.
• You are responsible for maintaining payments on your essential bills, including rent or mortgage and Council Tax. Court fines, student loans, mortgage arrears or money owed under family court proceedings cannot be included in the PTD and you are responsible for maintaining payments. These payments will be considered when calculating your disposable income.
COST
• No upfront fees are charged. There are Nominee’s fees and Supervisor’s fees. These fees are deducted from your agreed monthly contribution.
• If your PTD failed, the Nominee’s fees and Supervisor’s fees may be included as a debt and your creditors may back date any interest or charges accruing on your debts.
ADVANTAGES
● A PTD is a statutory contract, therefore providing legislative protection from creditors and any legal action they may otherwise pursue.
● A PTD consists of one affordable monthly contribution.
● All interest and charges will be frozen upon acceptance.
● Creditor contact is forbidden (other than annual statements).
● Debts included in your PTD could be cleared in 4 years.
● The time frame is set at the outset, this will only be subject to change should your circumstances improve or worsen.
● No upfront fees are charged, and the Nominee’s and Supervisor’s fees are deducted from your agreed monthly contribution.
● Homeowners will usually be able to keep their homes, provided they maintain the mortgage payments and other loans secured against their property.
● Once you have made your agreed final contribution into the PTD any remaining debt is written off.
DISADVANTAGES AND RISKS
● Acceptance of the PTD lies with the creditors. Should this be rejected, alternative solutions will need to be re-investigated with a qualified debt advisor.
● Your credit rating will be adversely affected.
● There are restrictions on the expenditure of a person who enters into an PTD.
● Your details will be entered on a public register.
● Homeowners entering into a PTD may be required to release equity from their property. Due to credit scoring it may be that the terms of such an arrangement are less favourable and remortgaging may result in a higher interest rate.
● Any debts that can’t be included in the PTD, will be your responsibility to pay, for example court fines, student loans or money owed under family court proceedings.
● Only unsecured debts included within the PTD may be discharged at the end of the period and unsecured debts not included remain outstanding.
● Should the PTD fail, creditors may back date interest on your debts or may request your Supervisor petition for your sequestration.
● Entering into an PTD is a statutory contract which would require you to obey the terms of the PTD. Failure to do so could mean that the Supervisor may petition for sequestration or terminate the PTD (which would leave the creditors free to pursue the debts).
DEBT MANAGEMENT PLAN
A Debt Management Plan (DMP) is an informal debt restructuring solution for unsecured debt. DMPs are provided by debt management companies and charitable organisations who could negotiate with your creditors to try to get them to accept the lower repayments and freeze any further interest that might otherwise be added to your current debt.
CRITERIA INCLUDING TYPES OF DEBTS
● You have unsecured debts that you can’t afford to repay.
● You have one or more creditor.
● You have a surplus income every month.
● Arrears on household bills such as rent, gas, electricity, telephone can be included in your DMP, as well as consumer debts such as an overdraft, credit card or loans.
● Hire purchase or conditional sale agreements and items bought on finance may be included in your DMP depending on the amount you have paid towards the items and the terms of the agreement.
● You are responsible for maintaining payments on your essential bills.
● Certain types of debt will not be included in the DMP. You will be responsible for paying taxes, fines, child support payments and debt which could result in loss of access to essential goods or services or repossession of, or eviction from your home. The payments towards these debts will be considered when calculating your disposable income.
COST
● There is an option to pay a fee for this service with a debt management company or you can seek advice and/or assistance from the free sector, such as a charitable organisation.
● Commercial Debt Management Companies charge a fee for their service. They should be taking no more than 50% of your payment for the first 6 months as a fee to set up the plan, and no more than 50% of your payment to administer the service for you from month 7 onwards.
● There are charitable organisations that administer DMP’s free of charge. The Money Advice Service provides details of organisations that provide free debt advice and services. For more information visit https://www.moneyadviceservice.org.uk
ADVANTAGES
● A DMP is an informal arrangement that avoids the need for formal insolvency procedures such as a PTD or sequestration.
● You make one monthly payment.
● By reaching agreement with your creditors, a DMP may suspend actions against you such as County Court Judgements.
● Creditors will, in many cases, freeze interest and charges.
● Your monthly debt repayments will be reduced to make them affordable.
● The service can be provided free of charge.
● You can cancel your DMP at any point.
DISADVANTAGES AND RISKS
● The arrangements are informal and are not legally binding so creditors could, if they choose, add interest and charges, or pursue other recovery action such as court action. They could also change their mind at any point.
● Your credit rating may be harmed. A DMP means you are making a reduced payment to your creditors and although this has been agreed to by your creditors it will still be noted on your credit file.
● While such arrangements reduce your monthly repayments to make them affordable, it usually means you will pay more in total over a much longer period.
● Interest or charges could be added to your debt, which means the total debt to repay will be higher, and depending on your level of payment, it could make the duration of the plan longer.
● Unless your level of debt is less serious you could end up in debt for a very long time. In the worst case you may find you have no real prospect of getting out of debt and becoming debt free.
● You must maintain payments to your essential bills. You are responsible for paying taxes, fines, child support payments and debt which could result in loss of access to essential goods or services or repossession of, or eviction from your home.
● Creditors may take further action to recover the debt which may involve additional costs or charges. If a creditor has already commenced recovery or legal action, there is no guarantee that it will be suspended or withdrawn.
● If you are a homeowner, creditors may seek a charging order to secure their debt against your property.
● Money Advice Service can put you in contact with charitable organisations who will administer your DMP free of charge, however there are commercial organisations who will charge a fee. The fee will result in you repaying your debt for a longer period.
DEBT ARRANGEMENT SCHEME (DAS)
A Debt Arrangement Scheme (or 'DAS') is a formal, government-run debt management solution established by the Scottish Government. A DAS allows you to repay your debts in a manageable way over an extended period of time.
CRITERIA INCLUDING TYPES OF DEBTS
● You must have more than one debt.
● You must habitually reside in Scotland.
● You must seek advice and assistance from a DAS approved money adviser.
● You must have a reasonable level of disposable income after meeting your basic needs
● Arrears on household bills such as rent (but NOT mortgage arrears), gas, electricity, telephone and council tax can be included in the Debt Payment Programme (DPP), as well as consumer debts such as an overdraft, credit card or loans.
• Criminal fines, student loans, child maintenance service arrears, TV licence arrears, Social Funds loans or damages for personal injury ordered by a court cannot be included in a DPP and you are responsible for maintaining payments. These payments will be considered when calculating your disposable income.
• You are responsible for maintaining payments on your essential bills, including rent or mortgage and Council Tax.
COST
● A charge is made to creditors for the payments distribution service and application fee
● Some DAS approved money advisers may charge a fee so it is worth checking this prior to seeking advice. Money Advice Service can put you in contact with charitable organisations.
ADVANTAGES
● It is legally binding on the creditors and is supervised by the Scottish Government.
● The creditors are forbidden from taking any further action against you to recover the debts owed to them.
● A DPP freezes all interest, fees and charges on the debt from the date the DPP application is made and these are written off when the DPP is completed.
● Creditors that do not accept the proposals can be forced to comply with the arrangement if it is judged to be “fair and reasonable”.
● If your circumstances change and you can no longer afford the payment or are able to increase your payment then you may apply for a variation.
DISADVANTAGES AND RISKS
● Your details will be entered on a public register if you set up a DPP (DAS Register).
● A DPP will affect your credit file and your ability to obtain further credit.
● A DPP exists until your debts are fully paid and there is no debt write off.
● A DPP can last for several years if you have large debts.
● If you do not comply with the conditions of the DPP then it may be revoked. Creditors are then free to pursue legal action and to add back on their interest, fees and charges if they wish.
SEQUESTRATION
Sequestration is the term used for bankruptcy in Scotland and is a formal insolvency process that involves that appointment of a Trustee to recover money from any assets you own which may include your home.
CRITERIA INCLUDING TYPES OF DEBTS
● You are in financial difficulty and your situation is unlikely to improve.
● You must owe a minimum of £3,000.
● You must have received advice from a money adviser.
● You must not have been sequestrated in the last five years.
● A creditor can apply for your sequestration if you owe them more than £3,000.
● you must be living in Scotland, have lived in Scotland or have established a place of business in Scotland, in the year immediately preceding the date of your application.
● Some debts cannot be included in sequestration such as maintenance payments and child support payments, student loans, secured loans, Social Fund loans, some benefits and tax credit over payments.
COST
● The cost for sequestration is £200 and is payable to the Accountant In Bankruptcy (AIB).
ADVANTAGES
● Creditors do not have an opportunity to reject the Sequestration.
● Once sequestrated, creditors cannot take legal action to recover their debt.
● You can keep basic possessions and the tools of your trade if you are self-employed.
● You no longer have to deal with the creditors – the Trustee will do this for you
● Interest, fees and charges are frozen – the creditors can only claim for the outstanding balance due as at the date of sequestration
● Once discharged from sequestration any debts included in your sequestration will be written off.
DISADVANTAGES AND RISKS
● Assets of a significant value are likely be sold for the benefit of creditors.
● It may harm your employment prospects both now and, in the future, – legal advice should be sought.
● You are unable to act as a director of a limited company or be involved in the formation, promotion or day-to-day financial management of a limited company.
● You are unable to act as a Member of Parliament or a Justice of the Peace.
● Your details will be entered on a public register.
● You may be required to make payments towards your sequestration under a Debtors Contribution Order (DCO) if you have a surplus in disposable income after paying for your basic needs. A DCO can last up to 4 years.
● Sequestration will affect your credit file and your ability to obtain further credit.
MINIMAL ASSETS PROCESS (MAP)
Minimal Asset Process Bankruptcy, also known as 'MAP' was introduced on April 1 2015 as a new route into bankruptcy for people with low income and minimal assets.
CRITERIA INCLUDING TYPES OF DEBTS
● You must have a minimum debt level of £1,500 and your total debt level must not exceed £17,000.
● You must not own or jointly own any property or land.
● You must not have a single asset worth more than £1,000 excluding a vehicle worth up to £3,000 which you reasonably require (for example for work purposes).
● Your total assets (excluding a vehicle) cannot be more than £2,000.
● You must have received advice from a money adviser.
● You must be living in Scotland, have lived in Scotland or have established a place of business in Scotland, in the year immediately preceding the date of your application.
● Some debts cannot be included such as maintenance payments and child support payments, student loans, secured loans, Social Fund loans, some benefits and tax credit over payments.
● You must not have been sequestrated in the last 5 years.
● You must not have been made bankrupt through MAP in the last 10 years.
● You must have received benefits for the last 6 months or been assessed as not required to make a contribution towards your sequestration.
● You must have a certificate for sequestration signed by a money adviser.
COST
● The cost of a MAP is £90.
ADVANTAGES
● You don’t have to make any payments towards your debt as you have no disposable income.
● All debts are written off after six months, as long as you have met all the requirements.
● You no longer have to deal with the creditors – the Trustee will do this for you.
● Creditors do not have an opportunity to reject the MAP if you meet the criteria.
● Creditors cannot take legal action to recover their debt.
DISADVANTAGES AND RISKS
● It may harm your employment prospects both now and, in the future, – legal advice should be sought.
● You are unable to act as a director of a limited company or be involved in the formation, promotion or day-to-day financial management of a limited company.
● You are unable to act as a Member of Parliament or a Justice of the Peace.
● Your details will be entered on a public register.