Taking up debt is a common practice and all of us do it either from institutions or personal circles. However, if control is not practiced, debt can turn out to be a major headache. The common idea most people have is that the reason for accumulating huge debt is the outcome of compulsive spending habit. The statistics of people in UK gone bankrupt, begs to differ.

Majority of applicants who have applied for bankruptcy in UK has an uncanny common circumstance, and it is not due to compulsive spending. Most of the applicant has undergone life changing experiences like breaking up of marriage, major ailment and loss of job. The debt accumulated under these circumstances is too big to return under normal conditions also. These are accidents and it can happen to anyone. A good debts advice is required to control debt reactively as well as proactively.

Declaring bankruptcy is not always the best option available to a person. A detailed study of the financial conditions of an applicant, leads a consultant to decide the best financial options befitting his or her situation. There are both positive and negative points of any option; and the applicant has to decide the option most comfortable to his or her need. To decide and choose the course of action an applicant requires learning about all the options available to him or her. A sound debts advice provides all this and more.

In UK, the options available other than bankruptcy; to get rid of the debts are, IVS and DMP. An applicant learns about all this from a debts advice session.

An IVS or Individual Voluntary Arrangement is a system where the applicant retains all his or her assets, unlike bankruptcy where it is taken away. After evaluating the income and living cost of the applicant, an affordable, reduced pay back is arranged for the creditors for a span of generally five years. After the completion of the period remaining debt is written off and this is legally binding.

The DMP or Debt Management Plan is an informal understanding between the debtor and creditor, initiated by a private financial consulting organization. In this case, the debtor has to pay the creditors a reduced, affordable amount as long as the debt is not completed or the financial condition of the applicant is not improved.

If declaring bankruptcy remains the only option, then bankruptcy help can be obtained from any qualified financial consultant.