GreenBank offers a variety of ethical solutions for individuals who are burdened with unmanageable debts.
The solution we offer depends on the individual’s situation as each customer has different needs. Before we offer the best solution for the customer, we need to collate information to find out about the customers lifestyle, their income and expenditure, their debts and have an understanding of how they got into the situation. This information is collected on the initial call with the customer and only then are we in a position to offer the best solution.
The solutions that we offer are:
IVA
What is an IVA?
An Individual Voluntary Arrangement (IVA) is “A legally binding agreement between the debtor (someone who is in debt) and the creditors who are owed money (such as credit card companies, banks, catalogues etc)"
Criteria for an IVA
- Suitable for people who owe over £15,000
- Must owe money to three or more unsecured creditors and who are not able to manage repayments
- Must have a minimum disposable income of at least £180 per month
- Legally binding agreement
- Must have an income
Advantages of an IVA
- All interest and charges on unsecured debts will be frozen.
- Contact from creditors will cease.
- Debts ‘effectively written off’
- Effective alternative to bankruptcy
- All unsecured creditors are legally bound by the IVA.
- Contributions are based on the customer’s ability to pay.
- IVA’s are not published in local newspapers, unlike bankruptcy.
- It will not affect professions such as the Police Force and Armed Forces, neither will it affect a person’s ability to hold public office or act as a company director.
Disadvantages of an IVA
- Required to stick to a budget (usually five years).
- Additional payments if the debtor is unable to re-mortgage.
- Any windfalls, inheritance or bonuses must be declared to the Supervisor.
- All IVA’s are recorded on a public register and are likely to appear on the person’s credit file.
Debt Management
What is a DMP?
A Debt Management Programme (DMP) is a debt solution for anyone who has unsecured debts that they can’t afford to repay. It is an informal arrangement and therefore not legally bound. This may be suitable for people who do not qualify for an IVA.
Criteria for a DMP?
- The client is required to have a surplus income left over each month. (Money left over after they have paid all the household bills and living cost from their income).
- They must have more than one creditor.
- Suitable for someone with debts between £1k and £14k.
*Alternatively if debts are £14k or over we would recommend an IVA
Advantages of a DMP
- The clients only pay a single monthly affordable repayment based on what they can afford.
- There are no set up costs.
- The client will no longer need to negotiate with their creditors alone.
- Helps to ease pressure from the client.
Disadvantages of a DMP
- Creditors are not obliged to freeze interest and charges.
- It affects the client’s credit rating.
- Creditors can still take further action against the client.
- If the client is only making a small monthly payment against a high level of debt. It could take several years to clear their debt.
Brokers must register in order to use this service.
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