Debt Management
Debt Management services are designed for landlords with financial difficulties. This service will help landlords understand their options and the advice and support available. If you are a landlord facing repossession, Smartlandlord Debt Management service is the answer. We have fully trained professionals who will assist you in every step with your "individual voluntary arrangements" to enable you to make the right decisions. It is up to you to decide how much of the end to end service you would like to use.
| Product Name |
Price (excl. tax) |
| Individual Voluntary Arrangements |
On Application |
| Debt Management |
On Application |
Why choose Smartlandlord®?
- We offer one of the lowest charging fee structures in the industry
- We aim to do what is best for the client not what is best for our bottom line
- Our advisers are fully trained and experienced in Debt Management with a background in the financial services industry
Key Features:
Debt Management
- We negotiate a reduced monthly payment based on what you can afford
- Creditors are paid pro rata to reduce any interest
- We aim to get all interest and charges reduced or frozen
- We will reduce tension by dealing with creditor post and telephone calls
- Flexible plan – payments can be increased or decreased based on circumstances
Individual Voluntary Arrangement (IVA)
- Debt free in 5 years*
- We negotiate an affordable monthly payment
- An equity release from your home may be required
Exclusions:
The policy does not cover the following types of credit
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- Any debts with a Guarantor
- Secured Loans
- Mortgage
- Mortgage Arrears
- Current Rent Arrears
- Hire purchase
- Student loans
- Council Tax
- Council Tax arrears
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- Bailiffs for council tax
- Present utility bills and arrears
- Current business debts
- Power House
- Crazy Georges
- CSA payments
- Court fines
- Speeding fines
- Parking fines
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Other Information:
Smartlandlord offers this service through Connells.
* Relates to debts that are included in the agreement
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Q. How long does it take to get a Debt Management plan set up?
A. From the date the client makes their first payment we start negotiations on their behalf. It can take 4 – 6 weeks for us to agree reduced payments with the creditors this is because we have to request outstanding balance from them to ensure our offers are accurate. Once we have these we can put a financial statement and offer of payment together.
Q. How long does it take to set up an IVA?
A. Setting up an IVA can take anywhere from 4 – 12 weeks to set one up depending on client cooperation. The quicker we can get all the documents from the client to the insolvency practitioner the quicker we can get it set up for the client.
Q. Is the level of debt repayment fixed throughout?
A. One of the great advantages of Debt Management is its flexibility. Payments can be increased if your monthly income increases or decreased in your income is reduced. However with an IVA you need to be confident that you can make payments for the next 5 years as it is not easy to change the monthly payments.
Q. How long does Debt Management and IVA plans last?
A. The length of your Debt Management plan depends on your level of debt and how much you can comfortably afford to pay. With an IVA you will be debt free in 5 years.
Q. How will I know my creditors have been paid?
A. A client will know the creditors have been paid because we will send them a statement every month showing how much we have sent to each creditor. They will also receive their statements as normal from the creditors and this will show our payment being made to the account.
Policy requirements
Debt Management
- You must have two or more credit agreements
- You must have a disposable income i.e. after we look at their income and their essential expenditure the must have some money left to pay to the creditor.
- You must have less disposable income than they are currently paying to their creditors i.e. if they are paying £100 per month to their creditors and they have a disposable income of £150 then they won’t fit a Debt Management plan because the have enough money to make the full payments to their creditors.
IVA
- You must have over £15,000 outstanding in unsecured credit commitments.
- You must owe this money to more than 3 creditors, this includes associated creditors, for example Halifax and Bank of Scotland would count as one creditor because they are both part of the HBOS group.
- You should have over £250 disposable income per month to pay towards the IVA
- You should be confident they can afford to make these payments for the next 5 years as it is not easy to change the monthly payments when in an IVA.
Information required
- A signed client authority
- Details of credit being included in the plan
- Recent statements from creditors if available
- Last months bank statement
- Recent payslip
- Proof of other income – i.e. if in receipt of benefit income need letter confirming amount
Dos and Don’ts
Do:
- Set up an account with Smartlandlord® in order to access our products
- Have disposable funds for both Debt Management and IVA options
- Be aware that if you miss a payment when in an IVA it could lead to bankruptcy
Don’t:
- Ignore your debt problem – act now!
- Forget to add up all loans, store cards, credit cards and overdrafts when calculating your total debt
