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General Questions
- Will seeking assistance affect my credit rating?
- Will a debt solution encompass all types of debt?
- Do you have charges?
- How does Best Solution promote its 'best advice' policy?
- Will I be able to use credit in the future?
- Which regulatory organisations are Best Solution registered with?
- How quickly can a solution be arranged?
Debt Reduction Programmes
- How does debt management affect my credit reference file?
- How much will my creditors get each month?
- My reduced payments are less than my interest; does this mean I'll be paying forever?
- How do I know I'll be able to maintain the reduced monthly payments?
- How long does the Plan last?
- What happens if my circumstances change?
- Is my home at risk?
Individual Voluntary Arrangements
- Who can be helped?
- Will I lose my house?
- Can I stay in business?
- How long does an IVA last?
- Which creditors will be included in an IVA?
- Can I enter into an IVA if I have already received a Statutory Demand?
- Can I obtain an IVA if a Bankruptcy Order has been made against me?
- What happens if I don't keep up the payments on my IVA?
- What happens once I finish paying my IVA?
Consolidation Loans
- How much can I reduce my monthly payments by?
- How much can I borrow?
- Over what length of time can I spread my repayments?
- Can I use the loan for more than debt consolidation?
- What if I have an accident, am ill or get made redundant?
- Can I move house if I want?
Bankruptcy
- I have an endowment; will the official receiver force me to sell it?
- Will I lose my home?
- Which creditors get paid first?
- What is an Annulment of a Bankruptcy Order?
- What is "Discharge from Bankruptcy"?
- After being discharged from bankruptcy, are there any debts which are not written off and for which I can be pursued?
If you have any other questions which aren't answered here, please feel free to contact us and we will be happy to help you, with no obligation.
General Questions
- Will seeking assistance affect my credit rating?
Some solutions will (such as an IVA or Debt Management Plan), but re-mortgaging or taking a debt consolidation loan usually won't. However, your credit rating can be repaired and restored over time. Bear in mind that your credit record may already be 'damaged' by late payments or defaults.
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- Will a debt solution encompass all types of debt?
No, we can deal with almost any kind of unsecured debt, but if it's secured against property or vehicles you need to maintain the repayments. We are unable to deal with loans from the Student Loan Company and also arrears on utility bills etc for the property you are living in. We can normally act on loans, credit cards, overdrafts, store cards, catalogues, door to door collectors etc. It's also possible to deal with things like VAT, Inland Revenue and Department of Work & Pensions under certain circumstances.
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- Do you have charges?
All advice given is totally free of charge, confidential and without obligation. If applicable any fees payable for ongoing services will be fully detailed and explained to you.
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- How does Best Solution promote its 'best advice' policy?
By continually updating the training to our advisers and staff, we manage to maintain extremely high standards and always endeavour to ensure best advice is given. We monitor the market and keep up to date with changes in legislation and creditor business practices to ensure the advice and services we provide are the best available. We are keen to lead the way in changing attitudes and legislation in favour of our clients.
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- Will I be able to use credit in the future?
No debt solution (other than taking no action!) will prevent you from taking credit in the future. It may take some time to fully rebuild your credit rating, but Best Solution can assist you in finding sources for credit after clearing your debts if required.
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- Are Best Solution registered for debt advice?
Best Solution is fully licensed under the Consumer Credit Act 1974 to carry on the business of debt adjusting and debt counselling (and other activities), and with the Information Commissioner to hold and control personal information.
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- How quickly can a solution be arranged?
This does depend on what the solution is, but usually Best Solution can act very quickly in making the necessary arrangements. You will be advised at the outset as to what to expect in terms of timescales.
Contact us now to find out more about our services and how we can help you. Our Highly trained advisers will be happy to help.
Tel: 0800 933 6666
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Debt Reduction Programmes
- How does debt management affect my credit reference file?
If you already have a debt problem, it is likely that your credit rating has already been affected. If you are unable to meet the original contracted terms of your credit agreement your creditors will register that you are in default. This will be recorded on your credit file and will normally be retained on your file for 6 years.
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- How much will my creditors get each month?
This will depend on your circumstances. Most payments are calculated on what we call a pro rata basis. This simply means the more you owe a particular creditor, the more they will get of your Monthly Disposable Income (MDI). This is the amount of money left from your income after meeting all your living costs.
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- My reduced payments are less than my interest, does this mean I'll be paying forever?
Once we have provided each of your creditors with a financial statement and made them a formal offer of payment, they will normally suspend all interest and charges on the account if they have not already done so. It's possible to reduce your payments significantly but actually reduce the debt balance quicker because there is no interest going onto the account.
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- How do I know I'll be able to maintain the reduced monthly payments?
Any repayment proposal is agreed between you and your debt manager in advance. It is based on the information you have supplied and takes into account all your finances. That is why it is imperative that you include all the information asked for.
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- How long does the Plan last?
That will be determined by how much is owed and the amount you can realistically afford to pay your creditors each month.
You'll be given an indication of the likely length of the plan at the outset, but it will always be dependent on your creditors freezing interest and other charges on your accounts and your circumstances not changing.
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- What happens if my circumstances change?
If your circumstances change when on a payment plan, you need to inform us as soon as possible. We can then review the payments to your creditors and renegotiate them as required. We will normally expect to review your account up to twice a year and normally when requested by you or your creditors.
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- Is my home at risk?
Your home is only at risk if you fail to maintain payments on a mortgage or loan secured against it. We will allow enough to money to service the payments in full, subject to you having sufficient income.
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If you have any other questions which aren't answered here, please feel free to contact us and we will be happy to help you, with no obligation.
Individual Voluntary Arrangements
- Who can be helped?
Because of the costs of setting up an IVA, it is normally only practical and economically viable to obtain one if your debts exceed approximately £15,000.
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- Will I lose my house?
No. But should you have equity in your house, savings or other assets then these will be taken into account when making an offer to creditors.
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- Can I stay in business?
Yes, you can. Unlike being declared bankrupt, there's no limit on your business activities.
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- How long does an IVA last?
They normally last five years.
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- Which creditors will be included in an IVA?
Creditors you can include are: Banks, Credit Cards, Store and Charge card companies, Customs and Excise (VAT), Inland Revenue and even loans from friends and family. You can't include your mortgage, hire purchase, fines, debts incurred through fraud, maintenance / child support arrears of rental for the property you live in.
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- Can I enter into an IVA if I have already received a Statutory Demand?
Yes you can.
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- Can I obtain an IVA if a Bankruptcy Order has been made against me?
Yes you can.
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- What happens if I don't keep up the payments on my IVA?
If you default on your payments, the supervisor of an IVA can initiate bankruptcy proceedings against you.
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- What happens once I finish paying my IVA?
At the end of the process the Insolvency Practitioner will issue you with a 'Statement of Completion', typically within 3 months of the final payment. The Insolvency Practitioner will also send a copy of this to the Insolvency Service so that they can amend their records. So there is no need for you to attend court or even visit the Insolvency Practitioner's offices.
However, the onus is on you to send a copy of the Statement of Completion to all the credit reference agencies which are in operation at the time of their completion.
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If you have any other questions which aren't answered here, please feel free to contact us and we will be happy to help you, with no obligation.
Consolidation Loans
- How much can I reduce my monthly payments by?
This will depend on how much you are paying at the moment and how long you want to take to repay the loan. But reductions in monthly payments can be as much as 75%.
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- How much can I borrow?
There are a variety of factors which dictate how much you can borrow. Whilst your income and, for secured loans, the equity available in your property are key, the main one is that you can afford to make the monthly repayments. We can arrange loans from £3,000 up to £1 million.
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- Over what length of time can I spread my repayments?
This is entirely up to you and will depend on how much you can afford each month. Our loans are usually available over 3 to 25 years, though some mortgages can be spread over 47 years.
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- Can I use the loan for more than debt consolidation?
They normally last five years.
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- What if I have an accident, am ill or get made redundant?
We can arrange optional accident, sickness and unemployment cover if you want the added peace of mind this brings. Life assurance is also available.
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- Can I move house if I want?
Absolutely. If your consolidation loan is secured against your house then you can use the proceeds of the sale to pay the outstanding balance of the loan or, where you are moving to another property, you may be able to transfer it to your new home. Either way, contact us and we'll help you decide on the route which is most suitable for you.
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If you have any other questions which aren't answered here, please feel free to contact us and we will be happy to help you, with no obligation.
Bankruptcy
- I have an endowment, will the official receiver force me to sell it?
This will depend on whether your endowment policy is 'charged' to your mortgage, as would be the case if you had an Endowment Mortgage.
If it is part of an Endowment Mortgage, then it will fall under the control of the Official Receiver as an asset and be claimed. In which case the monetary value of the policy will be released by surrendering it or selling/auctioning it on the second hand market.
The length of time the policy has been running, as well as the type of policy it is i.e. with-profits, unit-linked, unitised with-profits, will dictate the course of action to be pursued. Generally speaking, if the policy has been running any length of time it is likely to be sold to pay your debts.
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- Will I lose my home?
Your home may have to be sold to go towards paying your bankruptcy debts. This applies whether your home is solely or jointly owned.
If your home is mortgaged, whether you have kept up your mortgage payments or not, your lender should be notified of your situation and impending bankruptcy.
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- Which creditors get paid first?
Once the Official Receiver/trustee has claimed all saleable assets, your creditors will be paid out in the following order:
- Bankruptcy expenses incurred by Official Receiver or Insolvency Practitioner
- Expenses related to property sale (e.g. estate agents)
- Any income tax owed for the year prior to bankruptcy.
- Any income tax payable for an on behalf of subcontractors
- Any VAT owed for the period of 6 months prior to the bankruptcy.
- All other taxes owed from the year prior to the bankruptcy (e.g. car tax).
- Any National Insurance contributions from the year prior to bankruptcy.
- Any wages owed to employees for the 4 months prior to the bankruptcy.
- All other creditors.
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- What is an Annulment of a Bankruptcy Order?
An order of annulment can only be made by the court and is a procedure which cancels a Bankruptcy Order.
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- What is “Discharge from Bankruptcy”?
This is the process which releases you from the bankruptcy order and most of the debts which you owed when the order was made.
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- After being discharged from bankruptcy, are there any debts which are not written off and for which I can be pursued?
There are a number of debts which can still be enforced if not fully paid under the bankruptcy order:
- Court fines such as maintenance orders, Child Support Agency payments and any other fines made through family courts.
- Any debts included in the bankruptcy which were connected with fraud.
- Money owed to the Student Loans Company
- Any debts connected with or arising from personal injury claims.
- State benefit overpayments
- Secured Creditors.
However, the discharged bankrupt can request the courts permission not to pay the debt being pursued on the grounds of having recently being discharged from the bankruptcy order. Unless the pursued debt is related to fraud, the court can grant the request at its discretion.
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If you have any other questions which aren't answered here, please feel free to contact us and we will be happy to help you, with no obligation.
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Debt FAQ