Dealing with separation or divorce is tough enough. Adding debt issues into the mix is particularly stressful. If you and your ex-partner are able to keep open the lines of communication, it is so much better. Your debt issues will not go away and getting a plan in place to deal with your debt, will then help you focus on getting your life back together.
If you have joint debt this is debt in joint names this means that creditor can pursue the full amount of debt against either of you. It is not generally possible to split joint debts. Depending on the level of your debts there are options which can provide both you and your partner protection from creditor action including Individual Voluntary Arrangements. IVA’s include all debt whether it is your name or joint names. If one of opts for an IVA, creditors with joint debt will then pursue the partner for the whole of the debt and this is why is makes sense to communicate with each other on the strategy to deal with your debt.
Housing and Joint Mortgages
If you have a joint mortgage and are keen to protect the equity in your property, its vital that you and your partner make it a priority to maintain the mortgage payments. It is recommended that you get legal advice about how your property is treated.
If you are now on your own in a property, let your council know and you will be entitled to 25% discount on your council tax.
Divorce Aid is an independent organization of professionals that provide very helpful information to anyone in the UK going through the separation or divorce process.
It’s vital to work through your income and outgoings. The Debt Advisor Debt Calculator tool will help you work through your budget and identify what surplus you may have to cover debt payments.
If you need help running through your budget, we can help. We have tools including:-
Credit searches – this helps you identify account numbers and up to date balances on your debts
Open banking – this allows you to convert information from your bank statements into a summary of income and outgoings.
Within minutes our team can help you pull together a budget which is essential to help you identify your options for dealing with debt.
Options to dealing with debt
An Individual Voluntary Arrangement (IVA) would allow you to repay your debts over a 5 or 6 year period dependant on your individual circumstances. You would make one monthly payment based on what you can afford. Once you have successfully completed the IVA, your creditors would write off any remaining debts.
If an IVA is not a suitable option, there is also a Debt Management Plan (DMP) as with the IVA you would only repay what you can afford on a monthly basis. Generally debt management plans do not provide for debt to be written off. If during the plan, you can raise a lump sum our team will help put forward full and final settlements offer.
There are a range of other options that could be appropriate, if you contact us, one of our experienced advisors will explain all the options available and you can make an informed decision on which route to take.
If you live in Scotland, the solutions are different. You can find out more on by visiting Scottish Debt Solutions.
Who can you talk to about debt Issues?
Knowing you owe money that you cannot afford to repay can be very scary. The problem will not go away and will only get worse if you ignore the problem. Don’t panic, it’s important that you look after yourself and keep calm.
The Debt Advisor has been in existence for 20 years and we have gained a reputation as the “go to” practice for debt advice and debt solutions and most importantly, we are authorized and regulated by The Financial Conduct Authority “FCA”.
The FCA register will let you know if the organization has permission to provide debt advice and are able to help with debt adjusting which is the ability to negotiate with your creditors.
Get Debt Advice Today
For full debt advice and whether any of our available debt solutions would be the best option for you to get out of debt, you can speak to one of our advisors directly on 0800 085 1825 or arrange a callback.
The Debt Advisor Ltd is regulated by The Financial Conduct Authority. This means we are able to offer debt advice and deliver both formal and informal solutions. All debt solutions need to be carefully considered and you must take independent debt advice. We hope that the information and debt advice on this site including Frequently Asked Questions, will help inform you.
There are sources of free debt advice and services. You can find out more by contacting the Money Advice Service on 0800 138 7777 or by visiting their website.