Debt Management

If you’re struggling financially, you may benefit from the debt management services of a professional insolvency practitioner.

Debt management help could save you or your business from insolvency, bankruptcy, or liquidation, so it’s important to be aware of the options available if you’re unable to pay your bills as and when they’re due.

If you need debt management assistance, the expert advisors at Irwin Insolvency are here to explain how they can help.

Who Can Help With Debt Management?

It’s never easy to admit that you’re facing financial difficulties, but the sooner you seek impartial advice, the more opportunities you’ll have to turn your finances around.

Both individuals and businesses often have multiple options available if they’re struggling to pay the bills, but knowing who to approach for debt management help is the first step towards financial recovery.

You may wish to start by consulting publicly available resources for basic information on debt management in the UK, such as the Citizens Advice Bureau or the government’s Debt Management Office.

However, it’s also a good idea to consult a licensed insolvency practitioner for in-depth advice. An experienced, professionally qualified insolvency practitioner can offer expertise, advice and debt management services that are tailored to your personal financial situation.

For example, Irwin Insolvency provides personal debt management, company debt management services and a range of effective insolvency services that could save you from bankruptcy.

The key debt management services available include:

• Debt management plans
• Debt relief orders
• HMRC debt management

Debt Management Plans

Debt management plans are designed to help individuals reorganise their personal finances by consolidating all debts into a single, more manageable plan. They cover personal, unsecured debts including credit bills, utilities and benefits repayments that total under £30,000.

Essentially, a debt management plan is an agreement between yourself and your creditors whereby your existing debts are consolidated and reorganised. You continue to make lump sum repayments, often with lower interest rates, but rather than paying each creditor individually you make payments to a single debt management company.

The end goal of a debt management plan is to ensure you pay off your debts, and your repayments will be staggered over several years until you’re debt free. Irwin Insolvency can arrange debt management plans on your behalf with creditors.

Debt Relief Orders

If you owe less than £30,000, debt relief orders are another effective way to manage your debts. A debt relief order is a court-ordered agreement between you and your creditors which typically freezes the bulk of your repayments on certain loans for 12 months. At the end of this 12-month period, any outstanding debts are often wiped out completely, offering you a fresh financial start.

Debt relief orders buy valuable time for you to reorganise your personal finances, as creditors are no longer legally allowed to chase you for payments. However, debt relief orders only cover personal, unsecured debts and you have to meet specific criteria for the courts to approve your application.

For example, you must only have assets totalling £2,000 or less, and you must only have £75 or less in monthly income after your outgoings have left your accounts. Speak to a licensed insolvency practitioner to see if you qualify for a debt relief order.

HMRC Debt Management

If you or your business is specifically struggling to pay your tax bills when they’re due, then you could benefit from HMRC debt management services.

Failure to pay your tax bill is a serious, potentially criminal offence. It could result in you facing large fines from HMRC, your business could be closed down and your assets sold off to pay your debts.

However, it’s in HMRC’s interest to help you out if you’re struggling, and they’re likely to agree to a debt management plan to assist with repayments. HMRC debt management plans typically allow you to delay and reorganise repayments through a Time To Pay Scheme. This provides valuable breathing space, which could save you from bankruptcy or winding up petitions.

When dealing with HMRC, the most important thing to remember is that they’re not out to penalise taxpayers. As long as you’re honest and open with HMRC about your financial situation, they’ll do everything they can to help. If you’re not open and honest, however, you could face mounting HMRC fines if you increasingly miss payment deadlines.

How Can Irwin Insolvency Help You?

If you’re struggling to pay your debts, then Irwin Insolvency’s experienced team is here to help. Our debt management services are designed to help individuals and businesses face financial challenges, and our debt management plans could save you from insolvency.

Contact Irwin Insolvency today to find out more about debt management help.