Bankruptcy advice

Sometimes Bankruptcy is the right solution If your debts have become unmanageable and you cannot see how things will ever improve, contact Gemstone for expert advice. Bankruptcy is one way of dealing with your debts and we can provide the advice and service that you will need to complete the process.

We know that many people worry about bankruptcy, which is why our range of services include attending court with you and support before, during and after bankruptcy.

Bankruptcy can remove the anxiety of being in debt and give you a fresh start, subject to some restrictions. You will no longer have to deal with any of your creditors and you will usually be discharged within 12 months of the bankruptcy order, with your debts being written off. However some debts are excluded, such as any secured and student loans. Declaring yourself bankrupt may not necessarily mean that you will lose all of your personal belongings, in fact you will be allowed to keep your general household items, and in some cases even your car and home.

Bankruptcy should be considered as the last resort for people in serious debt, as it can have serious implications. Your assets may have to be sold and shared out evenly amongst your creditors and you could even lose your job. You may be subject to an Income Payments Order and have to pay some of your disposable income to the trustee of your bankruptcy for three years. This will be divided evenly amongst your creditors. You may find it difficult to get a new bank account as most banks do not offer a facility for bankrupts. You will also be unlikely to gain further credit for six years, possibly even longer.

Every case is of course different and bankruptcy may not be the right option for you. Please give us a call to discuss your situation and find out whether it could be the best solution for you.

 
To get more Bankruptcy advice visit Debt Solutions.

IVA

Circumstances can change - If you've lost control of your finances an IVA could get you back on track. An Individual Voluntary Arrangement (IVA) is a legally binding agreement with your creditors to pay back a percentage of your debts over a set period of time.

A licensed Insolvency Practitioner is appointed to assess your circumstances and formalise the agreement which can sometimes require the disposal of some personal assets. An IVA typically lasts 5 years, though can be 6 years in some cases. Anyone entering into an IVA must be sure they can see it through to completion as if an IVA fails, the IP may file for the customer's bankruptcy.

After giving the customer an allowance for their necessary living expenses, the remainder of their income is paid to the IP, who will deduct their fees from this and pay the remainder to the client's creditors. Home owners may have to remortgage their property in the fourth year to release equity to their creditors. Entering into an IVA is not guaranteed, as creditors holding at least 75% of your debt by value must agree to or not vote against the IVA. Once the IVA is agreed, creditors cannot add fees or charges to the debts and will not chase the customer for any further payments. Additionally, once the IVA is complete, any remaining debt is written off.

Gemstone can provide access to market leading Insolvency Practitioners to guide you through the process of entering into an IVA. The costs differ significantly and will depend upon your circumstances. All of the fees are met by the agreed monthly payments you make into your IVA, which will be at a level you can reasonably afford. The initial costs are usually equal to 5 months' payments and the ongoing costs tend to be around £1,200 per annum, but you will not need to pay these in addition to your normal monthly payments.

Debt management

There are more ways of solving your debt problems than just another loan. Loans are often not the 'right' solution for people experiencing financial difficulty, and Debt Management Solutions can offer many of the benefits of a loan but without some of the less desirable elements, such as compounded interest (interest on interest).

A Debt Management Plan with Gemstone will provide you with the benefit of one single monthly payment for all of your unsecured debts. Due to a DMP being at a level that the customer can afford, it will usually result in a lengthening of the repayment period and possibly increase the total sum to be repaid. You should also note that any delay in payments to creditors, such as when paying our Plan setup fee can result in your accounts going further into arrears. For customers who pay into their Debt Management Plan regularly, we have a good record of gaining concessions from creditors such as suspension or reduction of interest and relief from further charges, though creditors are under no obligation to do this and may impose further charges. Should your DMP run for longer than originally projected, for instance due to debt levels being higher than expected or a change in your circumstances, you will of course incur further monthly DMP fees.

At Gemstone, we employ credit professionals and trained advisers whose aim is to help you become debt free. All Debt Management Plan customers will have a personal Account Manager who will handle their case for them.