DebtFree Haven

1. How much will a Debt Management Plan cost me?

Our Debt Management plans are worked out on an individual basis. We assess your income and expenditure to find out what your disposable income is and then we structure your plan around that. To get the plan under way, we take an initial fee and followed by an agreed percentage from your monthly installments.

Call 0800 840 9520 for more details and a free assessment.

2. What is a County Court Judgment ("CCJ") and can you help?

A CCJ is a judgment issued by the county court, for payment of a debt, when you have failed to maintain your agreement with a creditor. The creditor applies to the court to issue a CCJ after sending a default notice to your address. You should never disregard court paperwork and should fill out one of the three forms that are sent in the response pack

• Admission Form - if you complete this form, you are admitting to owing the full amount claimed.
• Defence Form - you should complete this if you disagree with the amount of the claim.
• Acknowledgment of Service - this form should be completed if you require extra time to complete or defend the claim. This will give you 28 days rather than 14 days.

DebtFree Haven can advise you on which form is relevant in your case as well as assist with filling out the paperwork to ensure that your circumstances are reflected and you receive a payment that is affordable to you.

3. What is an Income Payment Order ("IPO")?

After the making of a bankruptcy order, the Official Receiver ("OR") can ask the bankrupt for an income payment order (IPO) which requires the bankrupt to make contributions towards the bankruptcy debts from his income, if he or she has a high disposable income.

The OR will not seek an IPO if it would mean that the income of the bankrupt (after taking into account the payments under the IPO) would be insufficient to meet the reasonable domestic needs of the bankrupt and his family. 'Family' includes everyone who is dependent upon the bankrupt. This means children and any adults e.g. partners who don't have an income. The Official Receiver assesses 'reasonable domestic needs' by examining all the circumstances of the individual case. There are no fixed guidelines regarding IPO's as each case is assessed on an individual basis. Contributions would continue for up to 3 years but as they are based on income, if there is a decrease in your income or increase in your expenditure (eg. a new baby) the IPO would be reviewed, and payments could be suspended, reduced or even cancelled.

*Note: An IPO would not be sought where the bankrupt's only or main source of income is state benefits payments. Income includes all payments the bankrupt gets, including income from self-employment, PAYE employment, benefits (excluding child benefit), working tax credit, child tax credit and any payments under a pension scheme

4. What type of debts will not be written off in my Bankruptcy?

Debts that are not written off in a Bankruptcy are referred to as 'Non Provable in Bankruptcy'. Non Provable Debts can still be pursued by the creditor despite the individual being Bankrupt. Examples of these types of debts are:

Examples of these types of debts are:

1. Personal debt owning family and friends
2. Court orders such as CSA Child Support Agency payments, maintenance orders and any other fines made through family courts
3. Student Loans
4. Secured Credit
5. State benefit overpayments (apart from in certain circumstances where it can be proved that it was not the fault of the person receiving the benefits)
6. Any debts included in the bankruptcy which were found to be connected with fraud.

Please note that any form of negotiated repayment plan with your creditors instead of paying the full contracted amount will have a negative effect on your credit rating. However, it is always better to be seen to be making some form of regular payments. If you are currently experiencing financial hardship and are making irregular/no payments to your creditors then it may be that this information has already been recorded on credit reference agencies such has Equifax and Experian.