UK military personnel do enter debt management solutions. You’re entitled to deal with your debts.

 

This page is written for those serving in the:

 

• Royal Air Force

• Royal Navy

• British Army

 

For expert debt advice, please contact us directly. We’ve helped many members of the armed services to tackle their debts.

 

Using A Debt Management Plan

 

The aim of debt management plans is to get your finances back in balance. Your debt repayment gets reduced to an amount you can afford.

 

Creditors get asked to suspend interest and charges. If they agree, more of your money goes towards reducing your debt level. The plan continues until the debts are cleared.

 

This option does not provide debt write-off or formal legal protection. It’s therefore not suitable for everyone.

 

If you live in Scotland there is a formal alternative. It’s called the debt arrangement scheme. This option provides guarantees on legal action and interest.

 

Before starting either of these options, speak with your chain of command. Disclosure requirements get explained further below.

 

Starting An IVA

 

An IVA aims to address your debts over an agreed period. The repayment term is often five years, though this may sometimes be longer. Once you’ve completed the plan, any unpaid debt gets written off.

 

This is a formal insolvency process. It might affect assets that you own or receive. It’s recorded on a public register.

 

An IVA might be suitable if a debt management plan will last too long.

 

There’s a similar process for Scottish residents called a trust deed. The repayment term is often four years, though this may sometimes be longer.

 

Before starting either of these options, speak with your chain of command. Disclosure requirements get explained further below.

 

Entering Bankruptcy

 

Bankruptcy may be the cheapest and fastest way to deal with your debts. The process works a little differently in Scotland.

 

This debt solution might cause you more problems. MoneyForce explains,

 

“Bankruptcy should be notified to your chain of command. Depending on the precise circumstances, this may have a severe effect on your career”.

 

It’s clear that military personnel should not enter bankruptcy without caution. Speak with your chain of command before making an application.

 

The same caution should apply to entering a debt relief order. This option is available if your debts aren’t huge and you own few assets. It’s not available to residents of Scotland.

 

Disclosure To Your Employer

 

Before starting a debt solution, Disclose this intention to your employer.

 

Why is this necessary? The British Army comments on debt in terms of values and standards. They write,

 

“Look after your money carefully, avoid uncontrolled debts and heavy gambling as this shows a lack of self-discipline and others may lose their trust in you”.

 

Debt problems can make you vulnerable. They can affect your work performance. This can weaken bonds of trust. Your employer has a duty to control such risks. Disclosure is an important risk control measure.

 

The armed forces aren’t alone in requiring disclosure. The police employ similar risk management processes, for example.

 

Will This End My Career?

 

Debt will not lead to dismissal in most instances. The MOD’s MoneyForce website confirms,

 

“Formal Service action will only be taken in cases of persistent and irresponsible indebtedness. So it's better to seek help as soon as possible. Don't be embarrassed or ashamed to talk to your Chain of Command in the first instance. They will put you in contact with the relevant organisations that can help you”.

 

Debt problems arise for workers in all industries. They’re often caused by simple mistakes or bad luck. Employers usually want to support those who become affected. Retaining experienced people is a priority for most employers.

 

Security & Vetting

 

Your vetting level depends upon the type of work that you do. If your work is sensitive, the security requirements will be higher. Good personal money management might be expected. Open disclosure will be especially important.

 

The key source of information is your credit file. This report includes detail about debts, arrears, and defaults. Arrears and defaults will arise if you enter a debt management solution. The detail added to your report will remain there for six years.

 

Recruitment To The Armed Forces

 

When you apply to join the armed services, your finances get checked. This is partly to assess your personal conduct. It’s partly to check your recruit’s salary will cover any debt payments.

 

What if a recruit’s salary will not cover your commitments? This might be a barrier to securing armed forces employment.

 

Specialist Support Resources

 

There are many specialist resources you can access. For example:

 

The Royal British Legion

Royal Navy & Royal Marines Charity

MoneyForce

 

Get Debt Advice

 

For debt advice, please contact us.

 

Our advisers are qualified experts. We’ll work out which debt solutions you can use. Our advice is confidential and outside of your chain of command. We are a direct provider of debt management plans.

 

 

Author: Andrew Graveson  – Qualified Debt Adviser & Bright Oak’s Founder

 

Page Last Updated: 18/09/2019

 

 

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UK military personnel do enter debt management solutions. You’re entitled to deal with your debts.

 

This page is written for those serving in the:

 

• Royal Air Force

• Royal Navy

• British Army

 

For expert debt advice, please contact us directly. We’ve helped many members of the armed services to tackle their debts.

 

Using A Debt Management Plan

 

The aim of debt management plans is to get your finances back in balance. Your debt repayment gets reduced to an amount you can afford.

 

Creditors get asked to suspend interest and charges. If they agree, more of your money goes towards reducing your debt level. The plan continues until the debts are cleared.

 

This option does not provide debt write-off or formal legal protection. It’s therefore not suitable for everyone.

 

If you live in Scotland there is a formal alternative. It’s called the debt arrangement scheme. This option provides guarantees on legal action and interest.

 

Before starting either of these options, speak with your chain of command. Disclosure requirements get explained further below.

 

Starting An IVA

 

An IVA aims to address your debts over an agreed period. The repayment term is often five years, though this may sometimes be longer. Once you’ve completed the plan, any unpaid debt gets written off.

 

This is a formal insolvency process. It might affect assets that you own or receive. It’s recorded on a public register.

 

An IVA might be suitable if a debt management plan will last too long.

 

There’s a similar process for Scottish residents called a trust deed. The repayment term is often four years, though this may sometimes be longer.

 

Before starting either of these options, speak with your chain of command. Disclosure requirements get explained further below.

 

Entering Bankruptcy

 

Bankruptcy may be the cheapest and fastest way to deal with your debts. The process works a little differently in Scotland.

 

This debt solution might cause you more problems. MoneyForce explains,

 

“Bankruptcy should be notified to your chain of command. Depending on the precise circumstances, this may have a severe effect on your career”.

 

It’s clear that military personnel should not enter bankruptcy without caution. Speak with your chain of command before making an application.

 

The same caution should apply to entering a debt relief order. This option is available if your debts aren’t huge and you own few assets. It’s not available to residents of Scotland.

 

Disclosure To Your Employer

 

Before starting a debt solution, Disclose this intention to your employer.

 

Why is this necessary? The British Army comments on debt in terms of values and standards. They write,

 

“Look after your money carefully, avoid uncontrolled debts and heavy gambling as this shows a lack of self-discipline and others may lose their trust in you”.

 

Debt problems can make you vulnerable. They can affect your work performance. This can weaken bonds of trust. Your employer has a duty to control such risks. Disclosure is an important risk control measure.

 

The armed forces aren’t alone in requiring disclosure. The police employ similar risk management processes, for example.

 

Will This End My Career?

 

Debt will not lead to dismissal in most instances. The MOD’s MoneyForce website confirms,

 

“Formal Service action will only be taken in cases of persistent and irresponsible indebtedness. So it's better to seek help as soon as possible. Don't be embarrassed or ashamed to talk to your Chain of Command in the first instance. They will put you in contact with the relevant organisations that can help you”.

 

Debt problems arise for workers in all industries. They’re often caused by simple mistakes or bad luck. Employers usually want to support those who become affected. Retaining experienced people is a priority for most employers.

 

Security & Vetting

 

Your vetting level depends upon the type of work that you do. If your work is sensitive, the security requirements will be higher. Good personal money management might be expected. Open disclosure will be especially important.

 

The key source of information is your credit file. This report includes detail about debts, arrears, and defaults. Arrears and defaults will arise if you enter a debt management solution. The detail added to your report will remain there for six years.

 

Recruitment To The Armed Forces

 

When you apply to join the armed services, your finances get checked. This is partly to assess your personal conduct. It’s partly to check your recruit’s salary will cover any debt payments.

 

What if a recruit’s salary will not cover your commitments? This might be a barrier to securing armed forces employment.

 

Specialist Support Resources

 

There are many specialist resources you can access. For example:

 

The Royal British Legion

Royal Navy & Royal Marines Charity

MoneyForce

 

Get Debt Advice

 

For debt advice, please contact us.

 

Our advisers are qualified experts. We’ll work out which debt solutions you can use. Our advice is confidential and outside of your chain of command. We are a direct provider of debt management plans.

 

 

Author: Andrew Graveson  – Qualified Debt Adviser & Bright Oak’s Founder

 

Page Last Updated: 18/09/2019

 

 

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