Free Debt Counselling (also see below link to debt forums)

Before taking any action please see the Government Insolvency Service leaflet available online (in pdf format) http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/indebt-web.pdf which covers options in dealing with debt and the implications of each option.

The following offer free debt counselling giving guidance to help re-organise household budgets and set up debt repayment programmes. Note that priorities such as Mortgage, Council Tax and household utilities should be paid BEFORE any unsecured debts. Any payments due to the Child Support Agency also take priority. NOTE : IT IS STRONGLY RECOMMENDED THAT ADVICE IS TAKEN FROM AN INDEPENDENT NON CHARGEABLE DEBT COUNSELLING SERVICE BEFORE ANY DEBT CONSOLIDATION LOANS ARE TAKEN OUT. (If advice is taken from a debt counselling service advise the lender and request any proposed action be put on hold).

Personal debts including unsecured loans, catalogues, bank overdrafts are all non priority although setting up low payments can impact on your credit reference record. The benefit is making repayments that can be afforded and often persuading creditors to completely suspend interest charges. (NOTE : For SCOTLAND, Money Advice Scotland (0141-572-0237)
For NORTHERN IRELAND, Association of Independent advice Centres(028-9064-9519)  www.adviceni.net )

NOTE : Stop House Re-possession Companies  : A number of companies offer a service to find a buyer to purchase a house, and possibly rent the house back to the owner who wishes to sell. Before making a commitment to such a company please take advice from a reputable Debt Counselling Service. (see below Sale and Rent Back)

Consumer Credit Counselling Service

( 0800-138-1111 ) www.cccs.co.uk

( 0808-808-4000) www.nationaldebtline.co.uk

Similar to above although do not have facilities for Debt Management Plan. More of a self-help service. Can also advise on Bankruptcy.

2 Ridgmount Street
London
WC1E 7AA  (0207 436 9937)

Linked to Consumer Credit Counselling Service (0800 138 1111). Advice about money management. Credit Action is a national money education charity and this website will tell you everything you are looking for.

Citizens Advice Bureau

( National number 0207-833-2181 ) www.citizensadvice.org.uk

As above but can sometimes write letters direct to creditors where only token payments can be afforded i.e. min payment £1 per month. Advice depends on finding a local CAB and the waiting time!

It is best to take advice from free debt counselling services first. The Insolvency Service produce a free 'Guide to Bankruptcy'. Contact the Department of Trade and Industry for a copy.

Also obtain free advice on IVA's and Bankruptcy from http://www.insolvency.gov.uk/

Piggy's Bankruptcy Information website with lots of bankruptcy related information and advice  www.piggybankrupt.co.uk

Debt Advice/Voluntary arrangements/ Individual Voluntary Arrangement (IVA)

For formal personal or business Voluntary Arrangements contact a licensed Insolvency Practitioner. It is recommended that a phone call be made to The UK Insolvency Helpline - Freephone 0800 074 6918 www.insolvencyhelpline.co.uk for advice first. It is important to avoid insolvency practitioners who charge and 'up-front' or 'set-up' fee. If further information is needed send an email to adv@debtwise.co.uk for the 'DEBTWISE IVA Help Sheet'. The Association of Business Recovery Professionals (R3) produce a leaflet on IVA's see https://www.r3.org.uk/uploads/documents/Is%20a%20Vountary%20Arrangement%20right%20for%20me%20-%20June%202008.pdf

Check costs as a formal Individual Voluntary Arrangement can cost £1500 to set up and creditors may still reject any proposals! Many of the companies advertising to 'reduce debts' or 'make one monthly payment over 5 years' actually set up an Individual Voluntary Arrangement.

Debt Advice Trust www.debtadvicetrust.org The Debt Advice Trust ( Tel 0800 9546518) is a UK registered not for profit organisation created to help people in serious debt to get advice on various debt solutions ranging from bankruptcy to an IVA, debt management plans etc.

Debt Watchdog www.debtwatchdog.com Provide independent debt advice and information or Debt Management and IVA.

For personal debt try CCCS (who can now set up IVA's) or National Debtline (above) first to get free advice. Advice from a free debt counselling service is strongly recommended before 'Debt consolidation loans' are considered.

SCOTLAND: Trust Deed Advice http://www.trust-deed.co.uk/what_is_a_trust_deed.php (Voluntary Arrangement in Scotland)

Business Insolvency

See your Accountant and if necessary contact a licensed Insolvency Practitioner to take professional advice. Care must be taken in dealing with Banks. Whilst in theory the bank might be supportive to overcome short term difficulties it might be tempting for them to call in the business overdraft !! NOTE: It is strongly recommended to request any advice from an Insolvency Practitioner, including agreement on fees to be confirmed in writing when that advice is to be acted upon.