Every debt solution available in the UK, explained properly
There are seven main routes out of unmanageable debt in Britain, and which ones exist depends on where you live. This is what each one does, what it costs, and who it is actually for.
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.
Individual Voluntary Arrangement
England, Wales and Northern Ireland
People with multiple unsecured debts, a reliable monthly surplus, and often assets or a home they want to protect. The 2025 IVA Protocol indicates typical suitability includes several debts totalling around £7,000 or more, and not being eligible for a DRO.
How it works →
Debt Management Plan
The whole of the UK
People whose difficulty is temporary or whose debts are repayable in a reasonable period, and who want to avoid insolvency, protect a professional role, or keep the flexibility to change their mind.
How it works →
Debt Relief Order
England and Wales (Northern Ireland has its own version with different thresholds)
People on a low income with few assets and no realistic prospect of repaying. You must apply through an approved intermediary — usually a free debt advice charity. You cannot apply directly.
How it works →
Bankruptcy
England, Wales and Northern Ireland (Scotland calls it sequestration)
People with no realistic prospect of repaying, who are outside DRO limits — often because of the level of debt, income or assets.
How it works →
Breathing Space (Debt Respite Scheme)
England and Wales
Anyone who needs time to get advice and decide. It is not a solution in itself — it is space to find one. You must apply through an FCA-authorised debt adviser.
How it works →
Protected Trust Deed
Scotland only
Scottish residents with unsecured debts and a monthly surplus. The Scottish equivalent of an IVA, but with its own rules and a shorter typical term.
How it works →
Debt Arrangement Scheme
Scotland only
Scottish residents who can repay in full over a reasonable period and want legal protection while doing it. It is not insolvency.
How it works →
Side by side
The four solutions that apply in England and Wales, on the criteria that actually decide between them.
| 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 |
Scotland has a separate system — see Protected Trust Deeds and the Debt Arrangement Scheme.
Compare any two directly
Which of these is worth reading about first?
Eight questions about what you owe, what you can pay and where you live. We will point you at the routes that fit your circumstances — without telling you that you qualify for anything, because a website cannot know that.