Solving Financial Problems for Individuals with RJC Financial Management of Bromley

Options for the Individual

For a quick guide at a glance of your options and the impact to each click here

Refinancing	Sell surplus assets or re-mortgage your home so the funds can pay your debts
	Advantages	Disadvantages
	Keep credit rating intact No professional costs Easy to achieve	Must be affordable Must have assets available
Informal arrangement	Negotiate with creditors individually to achieve a settlement of the entire debt, reduce interest payments or extend terms of agreement
	Advantages	Disadvantages
	Cheap to achieve Can reduce pressure if agreement reached	Not legally binding Not all creditors may agree Credit rating still affected
Individual voluntary arrangement (IVA)	Formal agreement with all creditors to agree settlement of debts at a rate usually less than 100%
	Advantages	Disadvantages
	All creditors bound No comeback from creditors as long as agreement is maintained Agreement is completely flexible Costs of IVA can be drawn from contributions	Needs 75% in value of creditors to agree Only those creditors who have received notice are bound by terms Industry standard returns to creditors are 25% - 30% over 5 years
Bankruptcy	Court process where virtually all debts are included. Once bankrupt, no further action can be brought by creditors. All assets are sold and money paid to creditors.
	Advantages	Disadvantages
	Closure on financial difficulties Usually lasts only one year Lower cost than IVA Essential household furniture is protected	Restrictions from acting in certain capacities, e.g. company director, solicitor, accountant Stigma of being bankrupt Home is at risk Income contributions for up to three years