FAQ's

What are the advantages of a Moneyfreedom account?

It's easier to manage your outgoings. Gain peace of mind that your debts are under control and an expert is able to negotiate with the creditors.

How long will it take to pay off my debts?

The time to pay off your debts does depend on your overall circumstances. Each individual case is different. However, we can provide better advice on your specific circumstances once we have reviewed your situation in more detail.

Do I have to be working to benefit from Moneyfreedom?

No. As long as you have a minimum of £125 disposable income each month before making your credit payments, you will be eligible.

Do all creditors freeze interest & charges?

Creditors do not have to accept the offers or freeze the interest, but in our experience, they will accept our offers if they are a true reflection of your financial circumstances.

How will it affect my credit rating?

You should expect that your credit rating will be adversely affected due to the fact you are making reduced payments. However, your credit rating may already be affected if you have arrears or a history of missed or late payments. Joining Moneyfreedom and sorting out your financial situation should eventually improve your rating.

What if I'm off work because of illness or I lose my job?

We will conduct a full review of your financial situation and write to your creditors with an explanation for any new payments. If you are off work because you are ill, and as long as we know before the payment is due, we may able to suspend one payment.

What if my circumstances change?

We will conduct a full review of your financial situation and write to your creditors with an explanation of any new payments.

Will I still receive calls & letters from creditors?

The number of telephone calls and letters should decrease. However, we can not guarantee that they will stop altogether. We would urge you to contact us immediately if you receive any correspondance or telephone calls from your creditors.

Can my creditors still issue me with a CCJ?

This will depend on the solution taken.

Do I have to tell my partner about my debts?

Only if you have debts in both names. We would encourage you to be honest with them, but it's a personal decision.

What are your fees?

We retain your first payment as a fee. We then charge a monthly management fee of 15% subject to a minimum of £18.75 and maximum of £75.

How can I make payments to Moneyfreedom?

We can take postal order, bankers cheques and cash (although cash should be by recorded / special delivery), or you can make payments by Direct Debit or debit card.

Can I pay weekly?

We only have the facility in place to receive payments by Direct Debit or debit card on a monthly basis. If you do not have a bank / building society account, then we can advise you on how to obtain one.

If I do overtime can I pay more?

It is important that your debts are paid regularly and the amount stays the same. If you get regular overtime, include this in your income statement when you join Moneyfreedom.

Will I get any default notices?

You may be issued a default notice if you are in breech of your original agreement. Creditors do this to protect their own legal position.

Can I cancel my plan at any time?

We ask for a month's notice in advance, preferably in writing.

Can I still have a credit card?

We would advise against having a credit card while you are trying to clear your debts, as all unsecured debts should be included in the repayment plan.

Do you include secured debts on my plan?

A debt repayment plan can only cover your unsecured debts and arrears but will take into account your secured debt commitments.

Do I have to own my own home?

It makes no difference whether you are a tenant or homeowner or if you are still living with your parents.

What is an IVA?

An IVA or Individual Voluntary Arrangement is a negotiated agreement, which means that up to 75% of your debt can be written off. In an IVA, you agree to pay a single, reduced monthly sum into a fund that will be distributed amongst your creditors. IVAs normally run for five years, after which you will be debt free.

Who can apply for an IVA?

Anyone struggling with debt problems and who can no longer meet their monthly repayments can apply for an IVA. Because of the costs involved, debts below £15,000 are not normally considered appropriate for an IVA. You should also be able to contribute at least £200 a month to an IVA agreement to stand a chance of a proposal being accepted by your creditors.

How much will an IVA cost me?

The costs of setting up and running an IVA are paid for by your creditors, so there is no charge to you for this service. You should be aware that some companies may charge an upfront fee, but with Moneyfreedom, you can be sure that we will do all the work for you without you paying us any fees at all.

Will I be able to keep my home?

One of the advantages of an IVA over bankruptcy is that you will not usually have to sell your property. At the end of the five year period, you may have to make any equity available in your property to your creditors (usually by remortgaging). In bankruptcy, you often have to sell your house.

Will an IVA cover all of my debts?

An IVA only applies for unsecured debts, such as credit cards, personal loans, bank overdrafts etc. An IVA will not cover you against debts that are secured against an asset such as a mortgage or secured loan.

How long does it take to get an IVA in place?

An IVA involves carrying out detailed fact-finding to work out your exact financial and legal position. To do this we collect evidence of your personal and financial circumstances, prepare legal paperwork and then distribute the documents amongst creditors. Typically, it will take six to eight weeks, from start to finish, to agree an IVA proposal with your creditors.

Will an IVA keep my creditors from contacting me?

Once an IVA has been agreed by a majority of your creditors, none of them are allowed to take any further action against you, provided you keep up your monthly repayments. They are not even allowed to contact you.

Once the duration of the IVA is over, you will be free of the debt within your IVA proposal and your unsecured debts will then be written off by your creditors.

If you are frequently contacted by your creditors before an IVA is in place, you can ask an Insolvency Practitioner to apply to a county court for an "Interim Order" as part of the IVA process.

What is an Interim Order?

An Interim Order can be obtained from the court to keep your creditors away whilst your Insolvency Practitioner prepares an IVA proposal. Once an Interim Order is in place, your creditors may not continue with, or start new debt recovery proceedings against you. The Interim Order remains in effect until the IVA proposal has been discussed by your creditors and your Insolvency Practitioner.

Can I apply for an IVA if a Bankruptcy Order or CCJ has made against me?

Yes you can. Once you apply for an IVA, your Insolvency Practitioner will notify the appropriate courts. If your creditors and the court agree that an IVA is the best solution for all parties, then the bankruptcy order will be annulled once the IVA proposal is agreed.

Can my partner and I enter into a joint IVA?

Yes. Proposals for joint IVA's are similar to a single one, except that both of your incoming and outgoing expenditures would be used to decide on any final agreement.

What happens if I finish an IVA early?

It could be possible that your circumstances change during the period of your IVA. If they do, you should notify your Insolvency Practitioner. If you come into a "windfall" sum via a bonus, inheritance, or your circumstances improve, you might wish to pay off your IVA earlier than expected.

Eligibility

If you do not meet our basic level of debt criteria or you have fewer than three creditors, a Moneyfreedom account is not the best solution for you. However, we can give you advice, free of charge, on your specific circumstances.