Mortgage, credit cards and loan advice

aminabegum81

Hiya.

I would appreciate your advice on my dads debt.

He has a mortgage and also debts. He is only able to pay his mortgage monthly repayments and puts little towards the debts as he on debt management.

It is unlikely for my dads earning to increase. My question is, is there a way my dad can become debt free, without it affecting his home?

Thank you

sourcrates

Hi,


And welcome to MSE.


It seems your dad is already tackling his debts via a DMP (hopefully from a non fee charging provider).

What you are essentially asking is, is there a quicker way to get rid of the debt.

Parliament has laid down 3 formal debt solutions to tackle debt, they are :


(1) Bankruptcy


(2) IVA (Individual voluntary arrangement)


(3) DRO (Debt relief order)


(4) There is also the informal DMP (Debt management plan) that your dad is on now.


As your dad is a homeowner, the only formal solution he may qualify for is an IVA, however, you do need to meet certain criteria in order to qualify, and IVA `s are not suitable for everyone due to the high level of fees charged, usually your debt would be fairly substantial to consider an IVA.

More detail about your dads income and outgoings, along with the level and nature of the debt is needed, before you can take this any further.

aminabegum81

Thank you very much, you have been very kind to provide me with some options I had not considered or known.