Advertising Terms

Advantages

• Payments are lowered and based on your affordability.
• Assets such as your home and car are protected.
• Interest and charges on unsecured debts included are frozen.
• Debts included in the Trust Deed will be written off at the end of the arrangement.
• Creditors bound by the Trust Deed can’t take legal action against you.
• Your Trustee will distribute payments to creditors on your behalf.

Disadvantages

• It’s possible creditors will reject your Trust Deed proposal.
• Your wages could be arrested if you don’t keep up with payments
• A Trust Deed will have a negative impact on your credit rating.
• Homeowners may need to release equity to go towards what they owe.
• You can’t be a company director during a Trust Deed.
• You’ll need to abide by spending restrictions during your Trust Deed.

Advantages

• Repay your debt with affordable monthly payments.
• Creditors bound by the arrangement can’t take legal action against you.
• Interest and charges on included debts are frozen.
• All creditor communication will be handled by your insolvency practitioner.
• The DAS offers an opportunity to avoid sequestration.
• Homeowners won’t be required to release equity in their home.
• You may get a payment break if your situation changes.

Disadvantages

• No debt is written off and you’ll repay what you owe in full.
• It can take several years to repay what you owe.
• The DAS will adversely affect your credit rating.
• Your arrangement will appear on the public DAS register.
• Your arrangement may be revoked if you don’t comply with the DAS conditions.
• You’ll need to abide by a struct budget during the arrangement.
• Creditors may reject your application.

Advantages

• It’s possible to write off all unsecured debts.
• Creditors can’t reject the sequestration.
• Creditors can no longer take legal action to recover remaining debt.
• The trustee will liaise with creditors, removing the pressure of constant phone calls and mail.
• Interest, fees and charges are frozen – creditors can only claim for the outstanding balance as at the start of sequestration.
• If asked to pay a contribution it will be an affordable monthly payment that’s calculated in consideration with your living expenses.

Disadvantages

• Your credit rating will be negatively affected for six years
• It’ll be harder to obtain credit in the future
• Assets such as your home or car may be sold to release funds
• You must declare that you’re bankrupt to any person you attempt to get credit from – whether it’s an individual or joint application where the credit amount totals £2,000 or more or in all circumstances, where you already have debts totalling £1,000 during the bankruptcy.
• By entering sequestration, you could breach certain contractual obligations by being made bankrupt such as tenancy and lease agreements, various licenses, employment contracts and hire purchase agreements.
• There’s a four-year acquirenda term. This means that the trustee has a claim on assets acquired for a period of four years from the date of sequestration, for example inheritance.

Advantages

• You’ll not need to deal with creditors directly 
• It’s an option suitable for people on benefits 
• You may be eligible if you have little to no assets 
• It can be a solution for people with low income and can’t afford to make payments 
• Your debts will be cleared after six months 

Disadvantages 

• Your credit rating will be negatively affected 
• You may struggle to obtain credit in the future 
• Details of the MAP will be posted on the Insolvency Register and remain there for up to one year after it ends 
• Any assets you do have many be sold to repay your debts 
• You’ll face credit restrictions for six months after the MAP ends