Compare UK debt solutions, two at a time
The choice is rarely between all four at once. It is usually between two — and the difference between them comes down to a handful of things: how long, how much it costs, what happens to your home, and whether anything is written off.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation. We would rather you got good advice somewhere than bad advice from anyone.
IVA vs DMP
The real difference is legal force.
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IVA vs DRO
If you are eligible for a Debt Relief Order, it is almost always the better deal: twelve months instead of five years, no payments at all, no fees, and the qualifying debt written off at the end.
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IVA vs Bankruptcy
Bankruptcy is faster and usually cheaper.
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DMP vs DRO
A Debt Management Plan means paying your debts off over time.
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DMP vs Bankruptcy
A DMP asks how long repayment would take.
Full comparison →
DRO vs Bankruptcy
They achieve much the same result: qualifying debts written off after twelve months.
Full comparison →
Or see all four together
| IVA | DMP | DRO | Bankruptcy | |
|---|---|---|---|---|
| Formal insolvency | Yes | No | Yes | Yes |
| Where it applies | England, Wales and Northern Ireland | The whole of the UK | England and Wales (Northern Ireland has its own version with different thresholds) | England, Wales and Northern Ireland (Scotland calls it sequestration) |
| Typical duration | 60 months, or 72 with home equity | Until the debt is repaid — no fixed end | 12 months | Discharged in 12 months; payments up to 3 years |
| Monthly payments | Monthly, affordability-based | Monthly, flexible, changeable | No payments at all | Only if you have surplus income |
| Your home | Excluded; equity sets the term | Not affected | Not available to homeowners | May be sold |
| Credit file impact | 6 years from the start date | Defaults recorded, 6 years each | 6 years from the order date | 6 years from the order |
| Public register | Listed on the public Individual Insolvency Register, which anyone can search. Your address can be withheld only on evidenced safety grounds. | Nothing public. A DMP is a private arrangement. | Listed on the public Individual Insolvency Register. | Listed on the public Individual Insolvency Register, and in some cases advertised more widely. |
| Fees | Paid from your monthly payments | Free providers available | Free — no application fee | £680 application fee |
| Creditor protection | Legally binding on included creditors | None — entirely voluntary | Full protection, then write-off | Full protection, then discharge |
Which two should you be comparing?
Eight questions about your circumstances, and we will narrow it down.