Debt management plan (DMP)
Our DMPs are a completely FREE and available nationwide. You make one affordable monthly payment to us each month and we distribute this fairly to your creditors. Our DMPs give you the peace of mind that every single penny you pay to us is going towards repaying your debt. To find out more about how our DMPs work visit our DMP page.
Debt Arrangement Scheme (DAS)
These are run by the Scottish Government and, with the help of an approved money advisor, allow you to repay your debts through a debt payment programme (DPP). You make one monthly or weekly payment to your creditors. While the DPP is in place your creditors can't take any further action against you. Find out more about DPPs under the Debt Arrangement Scheme.
Trust deeds are a legally binding arrangement between you and your creditors, where you repay your debts over a 4 year period. During this time you make one monthly payment and at the end of the 4 years any remaining debt is written off. Find out more about trust deeds.
Bankruptcy is a form of insolvency and is normally only suitable if you can’t pay back your debts in a reasonable time. Assets you own, such as your house or car, will usually be sold to pay off your debts. This means if your assets are worth more than your debts, or if all of your regular payments are up to date and you can afford to keep paying them, bankruptcy is unlikely to be the best option for you.Find out more about sequestration.
LILA stands for ‘low income low asset’ and is a form of bankruptcy that’s available for people with a low income and who don’t own any high value assets (such as property or cars). If you qualify, a LILA bankruptcy will write off your unsecured debt. LILA bankruptcy is only available until 31 March 2015. Find more information on the criteria for a LILA bankruptcy.
Minimal Assets Process (MAP)
MAP bankruptcy is a way of writing off debts you can’t afford to pay. MAP bankruptcy is a new solution that will be available from 1 April 2015.
Key MAP facts:
- To qualify you must owe between £1,500 and £17,000
- To apply for MAP you need to pay a fee of £90
- MAP will be logged on your credit file for 6 years
Find out more about minimal assets process (MAP) bankruptcy
Equity release can help free up money that is tied up in your home so you can improve your financial situation, without the need to move. We have our own equity release advisors who can guide you through the process. Our equity release information will give you more details on how this works and whether you qualify.
Temporary repayment plan
If you can't afford to pay your creditors, you may have to arrange a temporary repayment plan. You make a small payment towards your debts, as a token, to show you’re willing to deal with your debts but can’t afford to pay them. This isn’t a long term solution, but to find out more you can read our information on temporary repayment plans.
If you have a lump sum of money or an asset, for example a property, a car or savings, you may be able to use these to help clear your unsecured debt. You can find out more about this by reading our settlement offers information.
Debt consolidation is when you take out one large loan to repay all of the other debts you have. This can be a risky solution to your debt problem. If you're considering this option, read more about debt consolidation.
This is when you get a new mortgage to give you extra money to repay your debts. There are lots of different things to consider before you remortgage. Find out more about remortgaging.