Debt Solutions – The only guaranteed way out!

How we can help.

The Airline Mortgage Company works alongside a large and established debt solutions provider in the UK, predominantly offering advice and above all a solution to people with unmanageable unsecured debt levels, they will offer FREE impartial debt advice in all types of situations. All enquiries are kept private and confidential to avoid embarrassing situations.

What do we do, and how do we do it?

For the application of an Individual Voluntary Arrangement (IVA). Our chosen provider for debt solutions will act on behalf of the client and negotiate with all creditors a fair and affordable dividend calculated by completing a full Income and Expenditure fact find that the client pays back over a maximum period of five years, this monthly dividend can be as low as £250, but the amount payable will be considerably lower than existing payments. Once the IVA proposal is accepted all interest is frozen and creditors are not allowed to contact debtors in anyway. Every case is different and can include certain clauses like the remortgaging of property in year three or four of the IVA to pay a lump sum payment from the maximum offer available the mortgage lender, thus potentially ending the IVA early. The IVA is a formal contract between the client, creditors and the Insolvency Practitioner.

For the application of the Debt Management Program, Our chosen provider for debt solutions will negotiate with the creditors a more comfortable and affordable payment with the creditors, this is an informal arrangement with the creditors and the client that the client will pay back 100% of their debt over a period of time, the amount payable is considerably less than the total minimum payments expected by the creditors, some creditors will freeze interest payments and stop chasing clients over their debts, but this is not guaranteed.

What debt can be included?

The debts that can be included are called unsecured, meaning anything that is not secured against a property or motor vehicle, for example credit cards, store cards, bank overdrafts, personal loans, and utility providers such as electric, gas and telephone providing that you can source a different provider.

The Pro’s
IVA

Debt free from 3 to 60 months
Lower monthly payments taking into consideration actual debt level
Can not apply for unsecured credit for up to five years (Is this such a bad thing!)
Potentially write off a percentage of the overall debts
Safeguards the house and the car
The responsibility of managing creditors is taken way
One monthly payment covers all creditors
Remortgaging is possible whilst in an IVA

Debt management

Lower monthly payments taking into consideration actual debt level
Safeguards the house and the car
The responsibility of managing creditors is taken way
One monthly payment covers all creditors

The basic criteria for an IVA

Ideally Suited for debts over £15000
Debts spread over three different creditors
£250 minimum expendable income per month (to be calculated using IVA guidelines for Income and Expenditure fact find)

The basic criteria for a Debt Management Program

Ideally suited for debts between £3000 and £15000
£125 minimum expendable income per month (to be calculated using Income and Expenditure fact find)

Typical case studies.

Case Study 1

A client in Newcastle, who had accumulated unsecured debts totalling £28,000 after the breakdown of her marriage. She had recently started a new job and was struggling to make ends meet. One of the providers fully-trained advisors called her and performed an in-depth fact-find, assessing her income and expenditure, and concluded that she could afford to make monthly payments of £275. Proposals for an Individual Voluntary Arrangement were put to creditors based on monthly payments of £275 for a period of five years in settlement of her debts, the client’s creditors accepted these proposals which generated a dividend of 57 pence in the pound. The client will pay £16,500 over five years in settlement of her debts of £28,000 and will be able to keep her house. At the end of the arrangement Miss D will be completely unsecured debt free. The whole process took no more than 4 weeks to complete.

Case Study 2

This client had debts of £424,424 following the failure of a business several years before. The only asset she had was her home which was worth £170,000. The client was not working as she had recently had a baby and was being supported by her boyfriend. The debt solutions provider assisted in the re-mortgage of the client’s home which realised the sum of £148,000. The debt solutions provider presented creditors with an IVA proposal to accept the £148,000 as a one off payment in full settlement of all liabilities. With no other assets or income, creditors accepted the IVA in February 2007. The client has now paid a one off dividend of 35 pence in the pound and the client is now unsecured debt free and was able to keep her house.

To clarify

Monthly Contribution IVA
This is where the individual offers monthly voluntary contribution payments for a period of up to five years. The amount that is offered is whatever the individual can reasonably afford, can be as little as £250 per month and will usually be substantially less than debt repayments that were previously being made. All interest and charges will be frozen during the course of the IVA, and at the end of the five year period the arrangement is concluded and the remainder of the creditors’ debts are written off.
SUBMIT

Lump Sum Settlement IVA
An alternative to a voluntary contribution IVA, the lump sum IVA involves the payment of a one-off lump sum in full settlement of the debts. Such a proposal may be suitable where a family member is prepared to make a one-off payment that generates a higher dividend than if monthly payments were made or where there is equity in a property that can be re-mortgaged. A lump sum IVA may be attractive to creditors, as it will enable them to be paid in a matter of months rather than waiting for up to five years.
SUBMIT

Monthly Contribution + Lump Sum IVA
Where a client may have substantial debts and could only offer a low monthly contribution in their IVA, but own their own property, the debt solutions provider may be able to negotiate a lower monthly contribution with a lump sum paid towards the end of the IVA. This can be arranged by way of a re-mortgage. Your client will always be referred back to you where a re-mortgage requirement arises.
SUBMIT

Debt Management
Is an informal agreement where a client pays a more affordable payment to creditors for a period of time until the whole debt has been paid off, Interest can be frozen but the decision is down to the creditors.
SUBMIT

The above service is not regulated by the Financial Services Authority and is separate to our relationship with Intrinsic.