Debts We Can Help With

We're currently assisting over 40,000 clients to repay many types of debts. The most typical debts are unsecured debts from personal borrowing. However, we can help with some not so obvious debts.

By debts included in the IVA or Debt Management Plan, we mean debts treated as an unsecured creditor and subject to negotiated repayment.

Other types of debts that can be included

Many kinds of debts can be included in an IVA or Debt Management Plan - not just those from personal loans and credit cards. 

• Catalogue debts.
• Store cards.
• Gas, electric or water bills (from a previous address and supplier).
• Disconnected mobile phone bill.
• Rent arrears (from a previous address).
• Old banks accounts.
• Some items bought on finance (provided not secured or with Perfect Homes, Brighthouse or Crazy George).
• Car Finance (only if you no longer have the car).
• Benefits and DWP (Department of Work and Pensions) overpayments as long as you are not still in receipt of the benefit.
• Loans with a Guarantor (only when Guarantor agrees to go on the plan)
• Payday Loans
• Mortgage or secured loan shortfalls (only if client no longer has property)
• Any service which you're no longer using where money is outstanding has the potential for inclusion, eg school, nursery, solicitor, dentist etc.

Items Bought on Finance

If you fail to make hire purchase or secured loan payments, for example on a car, then the finance company are likely to repossess it. An allowance will therefore be made for these payments to be maintained in your IVA or Debt Management Plan. In some cases it may be impractical to return items bought on credit, for example a fitted carpet. Such debts are includable in a DMP/IVA.

Council Tax Arrears

The current year's council tax liability is included in your income and expenditure statement as an essential outgoing, as are any catch-up payments for that year you have agreed with your local council. Arrears for a previous year can be included. The exception to this is when bailiffs have already gained access to your home, in which case it is too late.

Debts Subject to a CCJ

After your ability to repay your unsecured debts has been determined, any debts already subject to a CCJ are paid in full as per the terms of the CCJ before payments to other creditors are considered.

Shortfalls on Repossessed Items

If your home or other assets have been repossessed and sold there may remain a shortfall for which you remain liable. Such debts are unsecured and can be included in an IVA or Management Plan.

Debts Ineligible for Inclusion in a DMP or IVA

By this we mean debts that can't be included as an unsecured creditor and are therefore not subject to reduced payment negotiations. The debts described below are debts that must be paid as a priority and are therefore considered as an essential expenditure item in calculations to determine how much you can afford to pay your unsecured creditors. Examples include:

Mortgage payments are classed as an essential expenditure item so provision for these are made ahead of unsecured credit repayments.

• Council Tax (If a bailiff has visited and entered the property or the arrears are already under arrangement)
• Secured loans (current)
• Mortgage and mortgage arrears (currently still owning the property)
• Car finance (currently still owning the vehicle)
• Any form of High Court Action (not County Court )
• Court fines or parking fines
• Rent arrears (current)
• Utility bills (with current provider)
• Debts in other people's names
• Loans with a guarantor unless the guarantor is entering the plan or IVA
• New lines of credit to which no contractual payments have been made (or it's under 3 months since the credit agreement was signed).
• Logbook loans (as secured on a vehicle)
• Accounts with Perfect Homes, Brighthouse and Crazy Georges (as they will reclaim the goods if payments not received)
• FLM Loans (these are guarantor loans)
• Warrior loans (HM Forces Loan will be taken out of service persons salary)
• Student loans
• Income tax bills
• Business debts (If the business is still trading)
• Any goods on HP you have not made at least 3 months payments towards
• Any fine or penalties imposed by a court
• Liabilities arising under an order made in a family or domestic court action such as CSA claims for child support
• Liabilities arising under a confiscation order made under S.1 of the Drug Trafficking Act 1986 or S.71 of the Criminal Justice Act 1988.

Income Tax and VAT arrears

Please see Income Tax and VAT arrears for information on your options to make arrears repayments to HMRC.