How to Write Off Debt
It sounds too good to be true, but there are many fully-legislated formal processes by which you can write off significant portions of your personal debt. Processes like Protected Trust Deeds, Independent Voluntary Arrangements, Personal Bankruptcy, as well as Sequestration, are all methods through which you can wipe out up to 80% of what you owe.
What is a Fixed-Term Arrangement?
The formal processes which we offer are fixed-term, which means you can only be held accountable for any of the debts included in your agreement for a predetermined amount of time. After you have fulfilled your side of the deal, any of the debt remaining is written off entirely, and creditors cannot pursue you for any more money.
Here is an example of how it would work if you owe £10,000 and are committed to paying £130 per month:
Step 1: Sign up to a Trust Deed which is granted protected status and will last four years.
Step 2: Pay your £130 every time, for a total of £6240 over the 48 months.
Step 3: After making your final payment, there will be £3760 left over – this is written off entirely.
Upon completing a fixed-term arrangement, you cannot be held accountable for anything that is left over – provided you fulfil every one of your agreed repayments.
This is just one fairly conservative example of the process, however. Depending on your level of debt to begin with and your income, it is possible to write off far more than just under £4000.
Am I eligible for a debt write off?
If you think that your situation is hopeless and that you are insolvent (unable to pay back your debts in a reasonable amount of time), then you may well be eligible for one form of debt write off or another. There is some information here on the criteria you have to meet to be eligible for a debt solution.
However, why do that work when we can do it for you? Give us a call on 0800 808 5124 so one of our advisers can discuss your finances with you. Alternatively, fill in our debt calculator (which only takes a minute!) and one of our team will phone you the very same day with some information on what options are available to you.