Debt Solutions Comparison

IVA, Debt Relief Order, bankruptcy or a Debt Management Plan · see which routes fit your situation and what each really means. Free help exists: you never need to pay for debt advice.

Solutions That Fit
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Side by Side
Solution Fits You? Duration Written Off Key Risk
Estimated Total You Would Repay
Free, Confidential Help
StepChange · stepchange.org · full advice and manages DMPs free
National Debtline · 0808 808 4000 · phone and webchat advice
Citizens Advice · local offices · DRO approved intermediaries
MoneyHelper · government-backed guidance
Breathing Space · 60 days of frozen interest and enforcement while you get advice · ask any adviser to apply

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Debt Solutions FAQs

What is a Debt Relief Order (DRO)?
A low-cost formal solution for debts up to £50,000 with spare income under £75/month, assets under £2,000 and no home. Free to apply since 2024, lasts 12 months, and if circumstances have not improved the debts are wiped entirely. Applications go through approved intermediaries such as Citizens Advice or StepChange.
What is an IVA and who suits it?
A legally binding arrangement · usually 5-6 years of affordable monthly payments with the remainder written off at the end (commonly 50-70%). It suits people with steady income and assets to protect, especially homeowners, because the home is not automatically at risk as in bankruptcy. Watch for mis-sold IVAs: if a DRO fits, it is almost always better.
Is bankruptcy really that bad?
For people with no realistic path to repayment, bankruptcy is often the fastest fresh start: discharge is normally after 12 months and most debts are wiped. Trade-offs: the £680 fee, potential loss of home equity and valuable assets, spending restrictions during the year, and impacts on a few professions. Like all formal solutions it marks your credit file for 6 years.
What is a Debt Management Plan?
An informal arrangement: a free provider (StepChange) collects one affordable payment and distributes it; creditors usually freeze interest but are not legally bound. Nothing is written off, so it suits temporary setbacks where you can repay in full given time. Never pay a commercial firm for a DMP · charities run them free.
Where do I get free help?
StepChange, National Debtline (0808 808 4000), Citizens Advice and MoneyHelper · all free, confidential and non-judgemental. Ask about Breathing Space: 60 days of frozen interest and paused enforcement while you decide. Avoid IVA lead-generation adverts promising to "write off 90%" · they earn fees selling IVAs to people who would be better off with a DRO.

For informational purposes only · Not debt advice · Thresholds: DRO £50,000 debt / £75 surplus / £2,000 assets; bankruptcy fee £680; IVA write-offs vary by case · England & Wales (Scotland has different solutions: sequestration, trust deeds, DAS) · Speak to StepChange or National Debtline before choosing