Frequently Asked Questions (FAQs)

If you are unable to meet the original contracted terms of your credit agreement your creditors will register that you are in default of payment. This will be recorded on your credit file and will normally be retained on your file for 6 years. However as part of our debt management programs we will negotiate with your creditor in order to try and prevent repeat default notifications.

One of our debt advisors will talk to you about your situation and establish your financial details. This information is then analysed to define a plan of action. Upon your agreement Action Today will begin the relevant communications with your creditors.

This will depend on how much disposable income you have (i.e. the money left over after paying all your living expenses) and how much is owed to each creditor.

This is determined by how much is owed and the amount you can realistically afford to pay your creditors each month. Most debt management programs are around five years but can last up to ten years. With the Rebuild Programme you are not locked into any fixed term and we review your situation every 6 months.

This will depend on how much you are paying at the moment and how long you want to take to repay the loan.

There are a variety of factors, which dictate how much you can borrow, but much depends on your income. Normal unsecured loans vary between £5,000 and £20,000.

This is entirely up to you and will depend on how much you can afford each month.

There are associated costs involved in setting up an IVA, therefore it is only practical to obtain one if your debts exceed £15,000.

An IVA usually lasts for three to five years.

Creditors you can include are: Banks, Finance Companies, Credit, store and charge card companies, Customs and Excise (VAT), Inland Revenue and even loans from friends and family. You can't include your mortgage, hire purchase, student loans, fines, debts incurred through fraud, maintenance/child support arrears or rental property.

At the end of the process the Insolvency Practitioner will issue you with a 'Statement of Completion', typically within 3 months of the final payment. The Insolvency Practitioner will also send a copy of this to the Insolvency Service so that they can amend their records.

Your home may have to be sold to go towards paying your bankruptcy debts. This applies whether your home is solely or jointly owned.

Once the Official Receiver/Trustee has claimed all saleable assets, your creditors will be paid out in the following order:

1. Bankruptcy expenses incurred by the Official Receiver or Insolvency Practitioner.
2. Expenses related to property sale (e.g. estate agents).
3. Any income tax owed for the year prior to bankruptcy.
4. Any income tax payable for and on behalf of subcontractors.
5. Any VAT owed for the period of 6 months prior to the bankruptcy.
6. All other taxes owed from the year prior to the bankruptcy (e.g. car tax).
7. Any National Insurance Contributions from the year prior to bankruptcy.
8. Any wages owed to employees for the 4 months prior to the bankruptcy.
9. All other creditors.

There are a number of debts which can still be enforced if not fully paid under the bankruptcy order:

1. Court fines such as maintenance orders, Child Support Agency payments and any other fines made through family courts.
2. Any debts included in the bankruptcy which were connected with fraud.
3. Student Loans.
4. Any debts connected with or arising from personal injury claims.
5. State benefit overpayments.
6. Secured Creditors.