This calculator shows works in two modes selected in “I want to know:” area. If you choose “What will happen if I pay extra” the software will calculate when you will pay off this debt and how much interest you will pay to the bank as opposed to your current debt plan.

If you choose “How to be debt-free after” option the calculator will show you how much you need to pay monthly in order to pay off your debt after the desired time period.

Your current debt balance, the annual interest of your loan and the current monthly payment are required fields.

The calculator uses monthly compounding formula which makes the results most accurate for mortgage-type loans.

Please consult your financial advisor before taking financial decisious. This calculator is for illustrative purposes and accuracy is not guaranteed. Your real loan payments may differ less or more than the ones suggested by the calculator.

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General

	download: Debtor Guide (89.92KB) clicks: 1438 added: 09/02/2010 clicks: 1438
In Debt? Dealing with your creditors - Download our FREE guide.

	download: IVA Guide (378.86KB) clicks: 1075 added: 02/07/2010 clicks: 1075
IVAs are they worth it. This is a guide to set the record straight, to show you how IVAs work.

http://www.direct.gov.uk/en/campaigns/RealHelpNow/DG_172617

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Personal Details

Surname
Forename
Additional Forenames
Title

Are you, or have you previously been known by any other name?
Date of Birth
Town of Birth
Gender

Do you Rent/Own your home?
Marital Status
Number of dependant children

Address

Do you currently live, or is your principal place or residence in England or Wales?
Have you either lived, or had your principle place of residence, in England or Wales?
Have you carried on business in either England or Wales in the last 3 years?

Any previous addresses in the past 6 years?
Previous Addresses

Home Telephone
Mobile Telephone
Daytime Telephone
Email

National Insurance Number
Tax Reference
Tax Office

What is your ethnic group?
What do you consider your national identity to be?
Do you consider yourself to have a disability?

Insolvency History

Are you currently subject to a formal Insolvency Proceeding?
Is there a pending bankruptcy petition against you?
Are you currently subject to a Debt Management Plan or County Court Administration Order?
Have you been in any kind of Insolvency procedure before?
Reasons for your debt problems: (Relationship Breakdown, Significant reduction in household income, Loss of debtors employment, Living beyond means, Illness/Accident, Business Failure, Increase in household expenses, Other)

Employment Details

Are you currently? (Self Employed/Trading, Employed, Unemployed, Housewife/husband – incl. caring for dependents, Company Director/Promoter, Retired, Student, Other)
Have you had a previous trading name?

Assets

Cash in hand
Cash at bank or building society
Money owed to you
Tools for trade

Motor Vehicle?
Make
Model
Year of 1st Registration
Registration Number
Condition
Motor vehicles value

Do you own any freehold or leased property?
Do you have any realisable assets?

Property Transactions and Preferred Creditors

Have you given away any property or sold it for less than its true value in the last 2 years?
Have you preferred any creditors over others in your payments in the last 2 years?

Creditors

Type of Creditor
Name of Creditor
Address of Creditor

Roll or Account Number
Amount owed to Creditor
Is this an excluded debt?
Is this a secured debt?
Is there an attachment of earnings order associated with this debt?

Any more creditors?

Income and Expenditure Account

Monthly Income
Monthly Total Salary / Wages
Monthly Total Other Income
Monthly Total Benefits
Monthly Total Pensions
Total Income

Monthly Expenditure
Rent
Ground rent and Service charges
Mortgage
Other Secured Loans
Mortgage Endowment and MPPI
Building & Contents Insurance
Pension and Life Insurance
Council Tax
Gas
Electricity
Water
Other Utilities(Coal, Oil, Calor Gas)
TV Licence
Magistrate Court Fines
Maintenance or Child support
Hire Purchase / Conditional Sale
Child Care Costs
Adult Care Costs
Monthly Total Phone
Monthly Total Travel
Monthly Total Housekeeping
Monthly Total Other Expenditure
Total expenditure

Income less Expenditure

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At official-debtrelieforder.org.uk, the privacy of our visitors is of extreme importance to us. This privacy policy document outlines the types of personal information is received and collected by official-debtrelieforder.org.uk and how it is used.

Log Files
Like many other Web sites, official-debtrelieforder.org.uk makes use of log files. The information inside the log files includes internet protocol ( IP ) addresses, type of browser, Internet Service Provider ( ISP ), date/time stamp, referring/exit pages, and number of clicks to analyze trends, administer the site, track user’s movement around the site, and gather demographic information. IP addresses, and other such information are not linked to any information that is personally identifiable.

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Google Adsense

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These third-party ad servers or ad networks use technology to the advertisements and links that appear on official-debtrelieforder.org.uk send directly to your browsers. They automatically receive your IP address when this occurs. Other technologies ( such as cookies, JavaScript, or Web Beacons ) may also be used by the third-party ad networks to measure the effectiveness of their advertisements and / or to personalize the advertising content that you see.

official-debtrelieforder.org.uk has no access to or control over these cookies that are used by third-party advertisers.

You should consult the respective privacy policies of these third-party ad servers for more detailed information on their practices as well as for instructions about how to opt-out of certain practices. official-debtrelieforder.org.uk’s privacy policy does not apply to, and we cannot control the activities of, such other advertisers or web sites.

If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browsers’ respective websites.

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The list of intermediaries (as noted below) are authorised to advise and assist people on the completion of a D.R.O application. They are authorised by companies that are considered to be very competent authorities.

The list below shows competent authories issued by the UK Insolvency Service, and are able to help you find an official approved intermediary:

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Bankruptcy is a financial solution that may be used by someone who can no longer pay or afford their debts. It’s usually used as the ‘last option’ for people who have massed a large amount of debt and simply cannot afford the repayments.

Once a person has been declared bankrupt, their remaining debts are written off, however you must consider this option very carefully, weighing up the pro’s and con’s of other debt solutions that may be available to you.

The period of bankruptcy usually lasts for one year, although in some cases this may be reduced.

Types of Bankruptcy

There are three common ways an individual can be made bankrupt:

• Voluntary – The individual themselves files for bankruptcy
• Involuntary – Bankruptcy order filed by the a creditor who is owed £750 or more
• Should you fail to make the repayments under whilst under an IVA (Individual Voluntary Arrangement)

A bankruptcy order can still be made even if you do not respond or refuse to agree to the terms. If you dispute a bankruptcy claim by your creditor, you should try and reach an agreement before the bankruptcy petition is due to be heard. Trying to reach a settlement after this time could prove both time-consuming and costly.

Bankruptcy Implications

Before you consider bankruptcy as an option to help you solve your debt problems you should look at alternatives such as an Individual Voluntary Arrangement (IVA).

• You will lose control of your assets
• You will be unable to obtain credit over £250 without permission from the lender
• You will not be able to act as director of a company for the duration of the bankruptcy
• You cannot take part in the formation of management of a Limited (Ltd) company without the explicit permission of the courts
• You cannot trade under a different name unless you inform all parties concerned of the bankruptcy
• You cannot practice as a Chartered Accountant or Lawyer
• You may not act as a Justice of the Peace (JP), become a member of Parliament or a Local Authority
• Your credit rating and ability to gain credit will be severely affected even after the bankruptcy order is annulled and you may be publically examined in court.
• The bankruptcy will remain on the debtor’s credit report for a period of 10 years

Also keep in mind the social implications of bankruptcy

Advantages of Bankruptcy

Although bankruptcy receives a lot of bad publicity, it may be a viable option if you owe a lot of money (typically over £25,000) and cannot afford the repayments.

Bankruptcy has two main advantages – both for the individual concerned and the creditors.

• For the individual, bankruptcy can provide relative peace of mind, outstanding debts are written off and the order is usually annulled in one year (sometimes less)
• For creditors, bankruptcy allows for a full investigation of the debtor’s financial affairs

Bankruptcy Myths

It is not a question of strict law and regulation. There are no legal provisions which state that bankrupts should be denied, or at least find it more difficult, to get credit.

This is not to say you cannot get credit. It is a myth that bankrupts cannot get credit cards, bank accounts or loans, they can. But the terms on which they get them are severe.

The factors outlined here apply to both voluntary and involuntary arrangements. However, it is generally accepted that the implications for forced bankruptcy may be worse.

So, when considering bankruptcy, make sure your thinking goes beyond the immediate and legal implications. As stated earlier, bankruptcy can give you a reputation not unlike that of having a criminal record and a series of social and financial assumptions will be made, regardless of the actual facts of the case. You will rarely be given the chance to put the situation in its proper context.

This should not be taken to imply that you reject bankruptcy as a strategy – but it must be a carefully considered one.

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If you find that you are unable to pay your debts on time, you may wish to consider an Individual Voluntary Arrangement (IVA) to avoid a bankruptcy order. An IVA is a formal agreement with your creditors that must be set up by a licensed Insolvency Practitioner.

Your creditors must accept the terms of an IVA, which often sees you paying back an affordable monthly amount over a 5 year period. After this period, the rest of your debts will usually be written off – sometimes as much as 70%. Interest charges and further action cannot be taken against you during the term of an IVA, so long as you can meet the agreed repayment plan.

How an IVA works

An Individual Voluntary Agreement (IVA) is an agreement between a debtor and his/her creditors which sets out repayment terms for a debt or collection of debts.

IVA’s are an alternative to bankruptcy and insolvency lasting for five years over which time, an independent insolvency practitioner supervises an agreed repayment contract which, provided that the terms of the agreement have been adhered to, is accepted as settlement of a debt.

IVA’s have grown in prominence over recent years and there is still considerable confusion in the market. This guide will explain how an IVA works.

1. The start of an IVA proceedings. An insolvency practitioner, who will oversee the IVA throughout, will discuss your current situation, any outstanding debts that you may have and any assets to determine your eligibility for an IVA as well as what you can afford to repay.
   The practitioner may, if necessary, obtain a court order known as an interim order, which prevents any of your creditors from taking legal action against you whilst your IVA proposal is being put together.
2. Meeting with your creditors. Once your insolvency practitioner has all of the required information, he will prepare a proposal which is your intended repayment contract. This contract details what you propose to repay as part of the agreement. This will be agreed with you before being finalised. Upon completion of this contract, he/she will report to the court and recommend a meeting of creditors. All creditors will be sent a copy of the proposal.
   At the meeting, creditors will vote whether to accept or reject the proposal (whilst it is common for some creditors not to attend the meeting, they will usually vote ahead of the meeting).
   If an insufficient number of votes are made in favor of the document, the meeting can be adjourned for up to two weeks. Otherwise, the agreement is carried forward and becomes binding.
3. The IVA Agreement. Throughout the life of the IVA, you are legally bound to make the agreed monthly repayments directly to your insolvency practitioner, who then pays a dividend to your creditors on an annual basis.
   At no point during the IVA can your creditors impose any further charges or interest unless you fail to adhere to the agreement.
4. Completing the IVA. After the five year period of the IVA has expired, your practitioner will send out a final report and dividend to your creditors and file a certificate of compliance, indicating successful competition of the IVA. From this point, the debts are considered to be settled.

Benefits of an IVA

• An IVA can help to prevent insolvency and bankruptcy. By reaching an agreement with your creditors you can pay back at least some of the debt that you owe. The rest is usually written off at the end of the IVA term.
• It is a private arrangement that will not be disclosed to the public (unlike bankruptcy)
• Due to its legal nature, further interest charges or court action cannot be brought against you during the IVA period
• You can continue to practice as a professional (e.g. Doctor, Solicitor) and even as a company director as an IVA does not affect your professional status
• An IVA is usually a sensible choice for people with larger debts from multiple creditors (typically over £15,000)
• After you complete an IVA the effects on your credit rating and credit score will not be as severe as if you were made bankrupt
• An IVA ensures that your job is protected and your home is not at risk as long as you can meet the repayment plan agreed with your creditors
• You can even take out a mortgage during the IVA term

Disadvantages of an IVA

• If you have equity in your home, savings or other valuable assets, you may be required to release them to pay your creditors near the end of the IVA term
• Normally, an IVA cannot be used by anyone with debts under £15,000
• You must be able to afford around £200 a month to pay your creditors
• If you fail to meet these repayments, your creditors will take legal action against you and this can often result in bankruptcy.
• Your home could also be a risk unless it was specially excluded from the IVA proposals
• IVAs usually last longer than bankruptcy (3-5 years), meaning that it will take longer to become debt free. Bankruptcy orders usually only last for 12 months.

Is an IVA right for me?

In some situations, an IVA may not be the best option and indeed, IVA’s are not available to all debtors. There are a number of potential debt solution options currently available, each with their respective merits and disadvantages. For more information, please read our free guide on IVAs.

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If you do not qualify for an Individual Voluntary Arrangement (IVA) or a Debt Management Plan you may qualify for a Debt Relief Order (DRO). Debt relief orders (DRO’s) are a form of insolvency procedure designed to assist those who have no assets and minimal excess income. They came into force on 6th April 2009 and can be obtained without the use of the courts.

A DRO offers those with less than £15,000 of debt and no more than £300 total gross assets a form protection from their creditors and the opportunity to become free from their debts within one year. Debt relief orders provide a good solution for those who are cannot repay their debts within a reasonable period of time and when their circumstances are unlikely to improve.

Who can get a debt relief order?

A debt relief order is a potential option for a large number of debtors who would not normally qualify for the alternative debt solutions, such as bancruptcy, or an individual voluntary agreement.
A person applying for a debt relief order has to meet the following criteria:

• Repayment of the debt in full is not possible and is unlikely to be in the foreseeable future.
• The debtor’s total unsecured debts must not exceed more than £15,000.
• The debtor’s total assets are no greater than £300.
• The debtor’s total disposable income is no more than £50 per month (income minus living expenses).
• The debtor is lives in England or Wales, or has been within the last 3 years.
• The debtor has not received a D.R.O within the last 6 years and is not currently in receiving another form of insolvency procedure, such as bankruptcy or an IVA.

How can I apply for a debt relief order?

You will only be able to apply for a debt relief order after seeking professional financial advice from a debt advisor. An approved intermediary, which could be the same person or company from whom you originally sought advice from, will then assist you with your DRO application. The intermediary may charge a fee for this service but this cannot exceed £100.
You cannot apply for a DRO without the assistance of an intermediary.
Upon receipt of the application and payment of the fee, an official receiver is able to make the order. This is done without the involvement of the court if it appears that the applicant meets the relevant requirements.

How does a debt relief order work?

During the time of a debt relief order you are protected from any enforcement action by creditors that are named in the application (note that some debts cannot be included in a D.R.O). This will usually last for a period of 12 months although a creditor may apply to the court to extend either the order or the restrictions placed on a debtor as a result of the order.

Throughout the lifetime of the order, you’ll be expected to co-operate with the official receiver and, should your financial situation improve, you will be expected to arrange to repay your creditors.

A number of restrictions will also be placed on a debtor during the life of the DRO (and in some cases, after the DRO has expired). These include:

• The debtor must not obtain credit of £500 or more, either alone or jointly with another person, without disclosing that they are subject to a DRO to the lender.
• The debtor may not carry on a business (directly or indirectly) in a different name after being granted a DRO without telling all those with whom they do business with under the previous name.
• The debtor may not be involved (directly or indirectly) with the promotion, management or formation of a limited company, and may not act as a company director, without the court’s permission.
• The debtor will only be able to obtain a DRO once every six years.

These restrictions could be extended should the official receiver deem that the debtor has acted improperly or dishonestly. This extension could last for up to 15 years.

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