Debt solutions compared
There are six main ways to deal with debts you cannot pay in England and Wales. They differ in who they suit, what they cost, how long they last and what they mean for your home and credit file.
The right option depends on your income, what you own, what you owe and which trade-offs you can live with. This page puts them side by side. It is general information, not a recommendation for your situation.
Free, impartial debt advice is available from MoneyHelper, StepChange, Citizens Advice and National Debtline, who can set up several of these solutions at no charge. See where to get free debt advice.
The options at a glance
England and Wales figures, checked in September 2026.
| Option | Usually suits | How long | Legally binding? | Cost to you | Credit file | Your home | What is written off |
|---|---|---|---|---|---|---|---|
| IVA | Regular income with money to spare. The IVA Protocol’s usual profile is debts of £7,000 or more (guidance) | Usually 5 or 6 years | Yes, once 75% by value of the creditors who vote agree | Fees from your payments, no legal cap. Citizens Advice says around £5,000 on average | Usually 6 years from the start | Protocol IVAs since 1 July 2025 do not ask you to sell or release equity. Equity of £10,000 or more adds a sixth year | What is left of the included debts, if you complete it |
| Debt management plan | People who can repay in full over time, or whose problem is temporary | Until the debts are repaid | No | Free from debt charities. Some companies charge fees | No DMP entry, but defaults and arrangement markers are likely | Not part of the plan | Nothing, unless a creditor agrees |
| Debt relief order | Low income and few assets: debts under £50,000, under £75 a month spare, assets under £2,000 | 12 months | Yes | Free since 6 April 2024 | 6 years from approval | Homeowners with any real equity will not usually qualify | Included debts at the end of the 12 months |
| Bankruptcy | People who cannot repay within a reasonable time | Usually 12 months. Income payments can last up to 3 years | Yes | £680 to apply, plus fees taken from anything the trustee sells | 6 years from the bankruptcy date | The trustee can sell or take a charge over your share if the equity is more than £1,000 | Most debts at discharge, but not student loans, secured debts or fraud debts |
| Breathing Space | Anyone who needs time to get advice and make a plan | Up to 60 days, or longer in a mental health crisis | Yes, creditors must pause | Free to apply, though some advisers may charge | No automatic marker, but missed payments can still show | Not affected. Keep paying your mortgage or rent | Nothing. It is a pause |
| Administration order | A county court or High Court judgment, debts under £5,000 and at least 2 creditors | Set by the court | Yes, it is a court order | A court fee on each payment, no more than 10% of the debt | On the Register of Judgments, usually removed 6 years after the order | Not part of the order | The court can order payment in full or in part |
Scotland has different options, including trust deeds: see debt solutions in Scotland. Northern Ireland has IVAs, bankruptcy and DROs, with some different figures, but no Breathing Space yet.
How to read the table
Three questions separate most of these options.
Can you pay something each month?
An IVA and a debt management plan both depend on a regular, sustainable payment. A DRO is for people who cannot make meaningful payments. Bankruptcy may involve payments from income, depending on what is left after reasonable living costs.
Do you want to repay in full?
A debt management plan repays everything, just more slowly. An IVA, a DRO and bankruptcy end with debts written off, which is why they are formal insolvency procedures with public records and restrictions.
What do you own?
A home with equity, a valuable car or savings can rule some options out or make them riskier. Bankruptcy puts your assets in a trustee’s hands. A DRO is only for people with very few assets.
Our IVA vs bankruptcy, IVA vs DRO and IVA vs debt management plan guides go into more detail.
Not sure which option fits? Answer a few questions and we can point you in the right direction. It takes about 3 minutes, and it is free and confidential.
Mistakes people often make
- Choosing from an advert. The FCA warns that some debt adverts make misleading write-off claims, call solutions “government backed” and push people towards IVAs because the firm is paid to. An IVA is a legal agreement run by private, licensed insolvency practitioners who charge fees.
- Missing the cheaper routes. DROs became free in April 2024 and the limits rose in June 2024, so some people turned away before may now qualify.
- Ignoring priority debts. Rent or mortgage arrears, council tax, energy and court fines can lead to eviction, disconnection or enforcement, so they usually come first.
- Paying for help you can get free. Debt charities set up debt management plans, DROs and Breathing Space without charging.
What to do next
- List your debts, your income and your essential spending.
- If creditors are pressing you, ask a debt adviser about Breathing Space while you decide.
- Talk your options through with a free debt adviser, or use our checker. If you use the checker, we may pass your details to a licensed insolvency practitioner or debt adviser.
Your options
- What is a debt management plan? An informal plan to repay unsecured debts in full at an affordable rate.
- How does a full and final settlement work? Settling a debt with a lump sum: when creditors accept, how to do it safely, and what it does to your file.
- Debt relief orders: who qualifies and how they work A free 12-month order that writes off debts for people with low income and few assets.
- Bankruptcy: how it works and what it means for you How bankruptcy works, the £680 cost, and what happens to your home, car, income and job.
- Breathing Space: pausing creditors while you get advice Up to 60 days of protection from creditors while you get advice, or longer in a mental health crisis.
- Mental health crisis Breathing Space Protection from creditors during mental health crisis treatment plus 30 days, via a debt adviser.
- Where to get free debt advice The free debt advice services in each part of the UK, what they can do, and how to check a firm.
Side by side
- IVA or bankruptcy? The differences explained How an IVA and bankruptcy compare on cost, length, your home, your job and your credit file.
- IVA or debt relief order? How a DRO and an IVA compare, and why DRO-eligible people are rarely suited to an IVA.
- IVA or debt management plan? How a DMP and an IVA compare on cost, protection, length and credit file, with examples.
- Debt consolidation loan or IVA? How a consolidation loan and an IVA compare on cost, risk, your home and credit file, with examples.
Scotland and Northern Ireland
- Debt solutions in Scotland Trust deeds, DAS, sequestration, the Minimal Asset Process and the 6-month moratorium explained.
- What is a Protected Trust Deed in Scotland? How a trust deed works in Scotland: who can get one, protected status, fees, your home and discharge.
- The Debt Arrangement Scheme (DAS) in Scotland How a Debt Payment Programme works, who can apply, the debts it covers, payment breaks and credit.
- What is sequestration? Bankruptcy in Scotland Scottish bankruptcy: the fee, the routes in, your home and income, the restrictions and discharge.
- The Minimal Asset Process (MAP) in Scotland Scotland's low-cost bankruptcy route: who qualifies, how it compares with a DRO, and what happens.
- IVAs, bankruptcy and DROs in Northern Ireland How IVAs, bankruptcy and DROs work in Northern Ireland, what they cost, and what is different.
Common questions
Can I switch from one debt solution to another?
Often, yes. People move from a debt management plan to an IVA or bankruptcy if things change, and a Breathing Space is designed to give you time to choose. Some moves have rules, for example you cannot get a DRO while you are in an IVA.
Do all debt solutions go on the public insolvency register?
No. IVAs, DROs and bankruptcies go on the Individual Insolvency Register. Debt management plans do not, and the Breathing Space register is private.
Which debt solution is cheapest?
A DRO is free, and debt management plans and Breathing Space are free through debt charities. Bankruptcy costs £680 to apply. IVA fees come out of your payments and Citizens Advice says they are around £5,000 on average.