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• There are many options available to help deal with serious personal debt problems and there are a range of debt-relief options available.听

• Remember you are not alone in facing financial difficulties, but the earlier you address it, the better.听听

• Solutions include Breathing Space, Debt Relief Orders (DROs), Individual Voluntary Arrangements (IVAs) and bankruptcy.听

For many people, January can be a time to reflect on their finances.听

Sadly, for some people, their debts will have become overwhelming. The Insolvency Service has a wide range of information about different debt relief options to support you with your journey this New Year.听听

The majority of debt relief solutions provide protection from creditors, giving people time to recover money owed or to seek further advice about how to manage serious debt.听听

Dean Beale, Chief Executive Officer of the Insolvency Service said:

There will be many people starting the New Year feeling overwhelmed by serious debt. Our key message is that you are not alone, but it is important to address it as soon as possible. There are lots of options available to help people begin a journey out of problem debt.

Where to start听

The first step is to speak to a regulated debt advisor. They are often free to use, and they will help choose the best way to deal with your debt. Get free debt advice - 188体育 has information about debt management and free debt advisory services.听

What next?听听

You can tackle your debts in in a variety of ways, such as setting up:听

• agreements with your creditors to defer or reduce the payments on your debts, by speaking to them yourself
• 补听听which is an agreement with your creditors that may be managed for you by a debt advisor
• 补苍听听from the court, when you鈥檝e had a county court judgment (CCJ) or a High Court judgment (HCJ) against you and your debts are under 拢5,000.

You can also get temporary protection from your creditors through the听, while still making repayments. You鈥檒l need to apply through a debt advisor.

You can find out more about how to deal with debt at: 听

What if a debt cannot be paid?听听

If you do not have enough money to repay all your debts there are options available:听听

Debt Relief Orders听

Debt Relief Orders (DROs) are one way to deal with your debts if you:听

• owe less than 拢50,000
• do not have much spare income - less than 拢75 per month
• do not own your home.

To find out more, go to: 听

Individual Voluntary Arrangements (IVAs)

An IVA is arranged through an Insolvency Practitioner. It is an agreement with your creditors to pay back what you can of your debts, usually by making payments from your income.

The Insolvency Practitioner will work out what you can afford to repay and how long the听IVA听lasts.

To find out more go to: Options for dealing with your debts: Individual Voluntary Arrangements - 188体育

Bankruptcy Order听

Bankruptcy is usually considered after other options have been exhausted. Someone who works for the Insolvency Service (called the 鈥榓djudicator鈥�) will check if your application meets the requirements for bankruptcy. They鈥檒l see if any other money could be used to pay your debts instead. There are serious implications in proceeding with bankruptcy. It should be noted that a Bankruptcy Order can result in the sale of any valuable possessions, including your home, and restrictions on how much money you can spend or borrow. To find out more, go to: