What is an IVA?
Find out if you are eligible for an IVA, how to apply and what to expect.
Read moreFind the debt solution that fits what you can afford.
Every UK debt option has a price as well as a benefit. We set out how each one works, who it suits and what it costs you, so you can choose with your eyes open.
- No sign-up
- No credit check
- No sales calls
What sounds most like you?
Pick the closest match for a quick pointer to the options worth reading first.
Not sure where to start?
Choose a situation above, or go straight to the comparison table below.
The main options side by side
Rules differ between England and Wales, Scotland and Northern Ireland, so the table notes where they do.
| Option | Best suited to | Typical length | Legal protection | Main trade-off |
|---|---|---|---|---|
| Breathing Space | Anyone needing a pause to get advice | 60 days | Yes: interest and enforcement paused | Temporary only; debts remain |
| Debt management plan | Steady income, want flexibility | Until repaid | No, creditors can still act | Interest may continue; creditors can refuse |
| IVA | Higher debts and a regular surplus | Around 5 to 6 years | Yes, once approved | Fixed payments; affects credit and assets |
| Debt relief order | Low income, few assets, smaller debts | 12 months | Yes | Strict limits; counts on your record |
| Bankruptcy | Debts you cannot realistically repay | Usually 12 months | Yes | Assets may be sold; wider restrictions |
| Protected trust deed (Scotland) | Scottish residents with a surplus | Often 4 years | Yes | Monthly contributions; home equity at risk |
| Debt Arrangement Scheme (Scotland) | Scottish residents who can repay in full over time | Set by the plan | Yes, interest frozen | You repay everything owed |
Lengths, limits and eligibility rules change. Check current figures on GOV.UK or with a free adviser before you decide.
The options, explained plainly
Open any option to see how it works, who it tends to suit and what to watch for. None of this is personal advice. A free adviser can look at your actual figures.
Individual Voluntary Arrangement (IVA)
A formal agreement, run by a licensed insolvency practitioner, to pay what you can afford towards your unsecured debts. Creditors holding at least 75% of the debt by value must vote to accept it.
- Interest and charges usually stop and creditors cannot chase you once it is approved.
- Fees are taken from your payments, so ask for them in writing before you sign.
- Missing payments can cause it to fail, which brings creditor action back.
Debt management plan (DMP)
An informal arrangement where you make one monthly payment that is shared between creditors. It is flexible, but it is not legally binding. Read the full guide.
Debt relief order (DRO)
A low-cost route for people with small debts, little spare income and few assets. Debts are frozen for 12 months and are usually written off if your circumstances stay the same.
- You apply through an approved intermediary, such as a debt advice charity.
- Limits on debt, income and assets apply and are updated from time to time.
Bankruptcy
A court process that clears most debts, usually after 12 months. It is the most far-reaching option, so it is worth discussing with an adviser first.
- Valuable assets, and sometimes home equity, can be used to pay creditors.
- Some jobs and roles carry restrictions while you are bankrupt.
Breathing Space
A government scheme that gives you 60 days free from interest, charges and most enforcement while you get advice. A longer version exists for people receiving mental health crisis treatment. You apply through a debt adviser.
Scottish options
Scotland has its own system. Alongside protected trust deeds and the Debt Arrangement Scheme, there are sequestration (Scotland’s bankruptcy) and the Minimal Asset Process for people with very little income and few assets.
Debt consolidation loans
Borrowing one larger loan to clear several debts. It only helps if the new rate and term are genuinely better, and secured loans put your home at risk. Be cautious if you were offered the loan after missing payments.
If you are being chased right now
Do these first
- Do not ignore court papers. Replying within the deadline can protect you.
- Do not agree to payments you cannot sustain, even if you are pressed on the phone.
- Keep every letter, text and email, and note the dates of calls.
- Contact a free debt adviser the same day if you can.
Debt collectors
Collectors must be honest about who they are and what you owe. You can ask them for proof of the debt, and you can ask them to deal with you in writing.
Bailiffs (enforcement agents)
Rules vary by debt type, but they generally cannot force entry into your home on a first visit for most ordinary debts, and they must give notice before visiting. Fees are regulated. Ask for ID and a breakdown of what you are charged.
A letter before action
This is the last step before a county court claim. Read it carefully, check whether the debt is genuinely yours and respond by the date given.
An unknown number keeps calling
Collectors use many numbers. See an example of our number guides: 07891891162: who called?
Free, independent help
If anyone asks you for a fee just to arrange a debt plan, stop and check these first. All four offer free, confidential debt advice.
Struggling with unaffordable debts?
Fed up of constant letters and calls? Talk through your options with a friendly team. Call free or ask for a call back.
Related articles
How to stop bailiffs
Your rights when enforcement agents contact you, and the steps to take straight away.
Read moreBreathing Space
How 60 days of protection works and how to apply through an adviser.
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