This guide starts with the most important question: is an IVA right for you, or would something quicker and cheaper be better? It then covers some of the specific problems people in the town face, from doorstep lending to rent arrears.
IVA or Debt Relief Order: which suits your situation?
Both write off debt, but they're designed for different circumstances.
| IVA | Debt Relief Order | |
|---|---|---|
| Monthly surplus needed | Usually at least around £80 to £100 | Less than £75 |
| Debt limit | None | Under £50,000 |
| Homeowners | Yes | Generally no |
| Length | Usually five years | Twelve months |
| Cost | Fees from your payments | No fee |
If you rent, have little spare money each month and owe less than £50,000, a Debt Relief Order is usually the better choice. If you have a steady surplus, own your home or owe more than £50,000, an IVA may be more suitable. A good adviser will check this with you rather than assume.
When your situation is somewhere in between
Some people in Middlesbrough sit right on the edge, for example with a surplus of around £75 to £100 a month. In that case, small changes, such as claiming a benefit you're entitled to or reducing a bill, can tip the balance either way. Have your budget checked properly before choosing.
What if you owe money to a loan shark?
Illegal money lenders operate in many towns, and Teesside is no exception. If someone lent you money without being authorised by the Financial Conduct Authority, they have no legal right to recover it. You can check whether a lender is authorised on the FCA Register.
- Don't include an illegal loan in your list of debts as if it were a normal creditor. Mention it to your adviser in confidence.
- The England Illegal Money Lending Team, known as Stop Loan Sharks, offers confidential support, and you won't get into trouble for having borrowed.
- If you're being threatened, contact the police.
Doorstep and high-cost credit
Legal home credit, rent-to-own furniture and catalogue accounts are still used by many families. These are unsecured debts and can usually be included in an IVA or a DRO. With rent-to-own agreements, the goods may belong to the lender until they're paid for, so check the agreement before assuming you can keep the item.
Renting from Thirteen or a private landlord
Thirteen is the largest social landlord in the Tees Valley, and many other households in Middlesbrough rent privately. Your landlord isn't told about your IVA or DRO, and your rent stays in your budget as an essential cost. Rent arrears, though, are a priority. Keep paying your full rent and get advice quickly about any arrears, because they can lead to possession proceedings.
Council tax and Middlesbrough Council
Council tax arrears owed to Middlesbrough Council can usually be included in an IVA or DRO, but your current bill must be paid. If you're on a low income, apply for council tax reduction, which can cut your bill significantly. If your arrears have been passed to enforcement agents, contact the council quickly and explain that you're getting debt advice. A Breathing Space can pause most enforcement for up to 60 days.
Getting through a crisis while a solution is arranged
Setting up an IVA or a DRO takes a few weeks. If you're struggling to buy food or keep the lights on in the meantime, don't wait. Middlesbrough Council can tell you about any emergency support currently available to residents, and local food banks can help in the short term. A Breathing Space stops most creditor action while you get advice. Telling your adviser that you're in crisis means they can prioritise the urgent steps first, such as contacting your energy supplier or landlord.
Court claims and CCJs on Teesside
Court hearings for Teesside are held at the Teesside Combined Court Centre in Middlesbrough, but most money claims are now issued online through the County Court Business Centre in Northampton. Either way, a claim form needs a response within 14 days. A county court judgment for an unsecured debt can be included in an IVA or DRO, and once your solution is in place the creditor can't enforce it.
Students and staff at Teesside University
If you're studying, an IVA is unlikely to be right for you, because your income is limited and will change after you graduate. Student loans can't be included in any debt solution. Overdrafts, credit cards and other unsecured debts can be. The university's student support team and free advice services can help you decide between a Debt Management Plan, a DRO or a better budget.
For university and hospital staff on steady salaries, an IVA is more likely to be workable, especially if debts are large.
Free advice and getting in touch
Free, impartial debt advice is available from Citizens Advice Middlesbrough and through MoneyHelper, including help to apply for a Debt Relief Order. You don't have to pay anyone for advice.
If you'd like to talk about whether an IVA could work for you, our team in Newcastle handles enquiries by phone and email. Send the form at the top of this page. If a DRO or another option looks more suitable, we'll say so.
Common questions from Teesside
Can I get an IVA if I'm on benefits?
Sometimes, if your household has a steady surplus after essential costs. If benefits are your only income, a DRO is usually more suitable.
Is it safe to tell an adviser about a loan shark?
Yes. Advisers deal with this confidentially, and borrowing from an illegal lender isn't a crime on your part.
Do I need to live in Middlesbrough itself to use these services?
No. The same options apply across Teesside and the rest of England, and free advice and our enquiry service both work by phone and online.
Will a DRO stop bailiffs?
Creditors included in a DRO can't take enforcement action for those debts. Priority bills you keep paying, like your current council tax, aren't affected.