Individual voluntary arrangements (IVAs)

An individual voluntary arrangement (IVA) is a formal agreement between you and your creditors that can help you repay your debts at an affordable amount.

IVAs are legally binding agreements that can help you deal with your debts. You can only get an IVA with the help of an insolvency practitioner (IP).

With an IVA you put forward an offer of payments on your debts to your creditors. This will be based on what you can afford and include fees, which will be set by your creditors.

If you have an IVA, your payments towards your debts can be made through either a one-off payment, known as a lump sum IVA, or a 60 or 72 month repayment plan.

Debt management plan (DMP)

A debt management plan (DMP) is a debt solution that can be used to help you pay back your debts at an affordable rate. It’s normally suitable if you're struggling to meet the original repayment amount you’ve agreed with their creditors.

If you’re on a DMP you make reduced monthly payments towards your debts. This means a DMP is suitable if you're struggling to keep up with your normal debt payments, but who still have money available to you after all essential living expenses are paid.

Sometimes people self-manage DMPs, but this depends how confident you are in dealing with your creditors.

DMPs are available across the UK. So regardless of where you live in the UK, if you’re struggling to keep up with payments to your debts, a DMP could help you to get your financial situation back on track.

Protected Trust deed

A trust deed becomes a protected trust deed once your creditors have agreed to the proposal. At least half of your creditors need to accept the proposal for it to go ahead, or creditors representing at least two thirds of your total debt. If a creditor doesn’t respond, it’s assumed that they’ve accepted the offer.

Once the trust deed is protected, your creditors they can no longer take action to collect the debt including chasing you for payments or starting court action

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Instead of making payments directly to your creditors you’ll make a payment to your trustee managing the protected trust deed and they’ll distribute this to your creditors on your behalf.

Debt Relief Order

A debt relief order (DRO) can help you to write off debt that you’re unable to repay in a reasonable amount of time.

Debt relief orders (DROs) are not available if you live in Scotland. In Scotland, a minimal asset process (MAP) is a similar solution, but it’s important to note that it has different benefits, risks and fees associated with it.

DROs are usually suited to people with a fairly low amount of debt and who have few assets.

In this section you can find out about DROs, how to apply and the criteria you need to meet to be eligible for one. It’s worth reading all of the pages in this section to understand the benefits and risks.

Debt Arrangement Scheme (DAS)?

The Debt Arrangement Scheme (DAS) is a statutory debt management tool overseen by the Scottish Government. It lets you apply for a debt payment programme (DPP) to repay your debts over a reasonable period by making affordable monthly payments.

The Debt Arrangement Scheme (DAS) is not available if you live in England, Wales or Northern Ireland. In these countries, a debt management plan (DMP) is a similar solution, but it’s important to note that it has different benefits and risks associated with it.

Homeowner Loan

A remortgage is when you replace your existing mortgage with a new one. If you’re a homeowner, remortgaging can improve your situation, if you find the right mortgage.

Remortgaging can mean changing products with your existing lender, or switching to another mortgage lender completely. If you're considering remortgaging in order to deal with your debts, you should always get expert debt advice before going ahead.

There are two main ways that remortgaging can improve your situation

You can release the equity that’s in your property in a lump sum and use this to repay your other debts

It might reduce your monthly mortgage payment, freeing up money to repay your other debts

Personal bankruptcy

Bankruptcy is a debt solution and a form of insolvency. It’s a legal procedure mainly suited to people whose circumstances are unlikely to change, and who have little hope of paying off their debts within a reasonable time.

Bankruptcy works differently depending on where you live in the UK. If you’re living in Scotland, please visit our section on sequestration (Scottish bankruptcy). If you live in England, Wales or Northern Ireland the information below outlines the bankruptcy process.  

MAP bankruptcy

The minimal asset process (MAP) is a way of applying for bankruptcy which is aimed at people on a low income with very few or no assets. It’s a means of writing off debt that you'd struggle to repay within a reasonable time.

The MAP bankruptcy is not available if you live in England, Wales or Northern Ireland. In these countries, a debt relief order (DRO) is a similar solution, but it’s important to note that it has different benefits, risks and fees associated with it