Debt Management Plans

Debt Management plans allow you to make the repayments you can realistically afford once essential living costs have been taken into account.

The client makes one monthly payment to FFO Debt Solutions which is distributed to all creditors involved. All interest and charges will be frozen, and typically the new payment amount under a debt management plan is half the amount the client is currently paying, but will depend on the individual circumstances.

• Ideally suited for debts between £3,000 - £15,000
• Simple to set up – FFO will manage all admin
• Allows reduced, realistic payments to be made over a number of years
• Allows your client to regain control of their finances

Individual Voluntary Arrangement (IVA)

• Ideally suited for unsecured debts over £15000
• Potentially write off a percentage of the overall debts
• Debt free within 3 – 60 months
• Safeguards house & car and avoid the consequences of bankruptcy

Monthly Contribution IVA

This is where the individual offers monthly voluntary contribution payments for a period of up to five years. The amount that is offered is whatever the individual can reasonably afford, can be as little as £250 per month and will usually be substantially less than debt repayments that were previously being made. All interest and charges will be frozen during the course of the IVA, and at the end of the five year period the arrangement is concluded and the remainder of the creditors’ debts are written off.

Lump Sum Settlement IVA

An alternative to a voluntary contribution IVA, the lump sum IVA involves the payment of a one-off lump sum in full settlement of the debts. Such a proposal may be suitable where maximum offer for a remortgage or secured loan for consolidation is not enough, or a family member is prepared to make a one-off payment that generates a higher dividend than if monthly payments were made or where there is equity in a property that can be re-mortgaged. A lump sum IVA may be attractive to creditors, as it will enable them to be paid in a matter of months rather than waiting for up to five years.

Monthly Contribution + Lump Sum IVA

Where a client may have substantial debts and could only offer a low monthly contribution in their IVA, but own their own property, FFO Debt Solutions may be able to negotiate a lower monthly contribution with a lump sum paid towards the end of the IVA. This can be arranged by way of a re-mortgage.