Debt Advice and Solutions for Individuals by Edge Recovery & Insolvency

Options for Dealing with Personal Financial Problems

Financial problems can seem overwhelming and can cause considerable stress to you and your family. Let us help you solve those problems and start a brighter future.

The following are the main solutions available to individuals with financial problems.

Refinancing	Sell surplus assets or re-mortgage your home so the funds can pay your debts
	Advantages Keep credit rating intact No professional costs Easy to achieve	Disadvantages Must be affordable Must have assets available
Informal arrangement	Negotiate with creditors individually to achieve a settlement of the entire debt, reduce interest payments or extend terms of agreement
	Advantages Cheap to achieve Can reduce pressure if agreement reached	Disadvantages Not legally binding Not all creditors may agree Credit rating still affected
Individual voluntary arrangement (IVA)	Formal agreement with all creditors to agree settlement of debts at a rate usually less than 100%
	Advantages All creditors bound No comeback from creditors as long as agreement is maintained Agreement is completely flexible Costs of IVA can be drawn from contributions	Disadvantages Needs 75% in value of creditors to agree
Bankruptcy	Court process where virtually all debts are included. Once bankrupt, no further action can be brought by creditors. All assets are sold and money paid to creditors.
	Advantages Closure on financial difficulties Usually lasts only one year Essential household furniture is protected	Disadvantages Restrictions from acting in certain capacities, e.g. company director, solicitor, accountant Stigma of being bankrupt Home is at risk Income contributions for up to three years

Individual Help

Options for Dealing with Personal Financial Problems

Refinancing

Sell surplus assets or re-mortgage your home so the funds can pay your debts

Informal arrangement

Negotiate with creditors individually to achieve a settlement of the entire debt, reduce interest payments or extend terms of agreement

Individual voluntary arrangement (IVA)

Formal agreement with all creditors to agree settlement of debts at a rate usually less than 100%

Bankruptcy

Court process where virtually all debts are included. Once bankrupt, no further action can be brought by creditors. All assets are sold and money paid to creditors.