In this day and age, it is not unusual for couples to need help with their debts. Weakness in the economy, the loss of a job or even a prolonged illness can sometimes result in the need for some sort of debt help. When this happens, it is important for couples to seek debt advice that is constructive and deals with their own individual circumstances. This often means exploring every option, including debt management plans, bankruptcy and an Individual Voluntary Arrangement with creditors, by way of the courts.
In order for a counsellor to provide useful advice, it is absolutely necessary that the couple be completely forthcoming with every debt obligation currently held by the household. All too often, couples may try to hold back a credit card account or some other debt from the consolidation or IVA, an approach that can have disastrous consequences in the long run. Since the idea is to take debt help that actually makes things better, full disclosure is the only way to go.
Looking for help with debts can often begin with the simple act of contacting a local agency that operates a debt helpline. The contact may be over the telephone or via a locally operated website. At its best, the debt helpline can provide practical suggestions of who to contact for assistance and in general assure couples that there is a way of overcoming their current adverse circumstances and get back on a sound financial footing, without losing everything they have.
Since there are several different ways to approach the debt resolution process, a qualified debt counsellor will typically go over all the options, pointing out both the benefits and the potential liabilities associated with each one. This is often in response to queries from couples about the possibility to “consolidate my debt” and avoid any prolonged legal issues. The idea here is to help couples see their current circumstances in a realistic manner, educate them on all possible solutions, then help them choose the approach that is most likely to be to their benefit in the long run.
In order to make this type of assessment, couples must be completely honest about every debt obligation they currently owe. Failure to include even the smallest of debts in the equation makes it hard for counsellors to properly assess their situation and make informed suggestions on how best to proceed. In some cases, failure to disclose certain debts can also put a bankruptcy or an IVA into serious jeopardy, leaving the couple in a worse financial situation than when they started the process. Since the goal is to eventually settle all the current debt, being completely transparent is crucial.
Along with revealing all debt obligations, couples should also make it a point to be equally forthcoming about income that can be used to settle those debts. Depending on the laws of the land, income that is speculative in nature may be omitted. For example, if one or both members of the couple are paid by means of a salary and a commission that varies from one month to the next, the court may determine to base the payment plan on the salary alone or possibly use an average of the salary and commission over the course of a year. This is especially important with an IVA, since the courts will periodically review the income levels of the couple over the course of the repayment schedule and take note of any shifts of discrepancies that appear later.
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