Can you write off debt in the UK?
Yes — but only through a small number of formal routes, each with real consequences, and never through a loophole. Here is what genuinely writes debt off, what merely reorganises it, and how to spot the adverts that blur the two.
Which UK debt routes can write off qualifying debt?
| Route | Qualifying debt written off? | Formal? | Key point |
|---|---|---|---|
| DRO | Yes — in full | Yes | Strict eligibility tests; free; 12 months |
| IVA | Yes — the remainder | Yes | Subject to the arrangement’s terms and successful completion |
| Bankruptcy | Yes | Yes | Significant asset and income consequences can apply |
| DMP | Normally no | No | Aims to repay included debt in full |
| Consolidation | No | Credit product | Replaces or restructures borrowing |
| Settlement | Potentially part | Usually informal | Depends on each creditor’s written agreement |
There is no universal debt write-off percentage. What is ultimately written off, if anything, depends on the solution, your circumstances, which debts qualify, creditor approval where relevant, and successful completion. A headline percentage does not tell an individual what will happen in their own case.
The routes that genuinely write debt off
An IVA — a legally binding arrangement, usually 60 months, or 72 months for homeowners with qualifying equity who cannot release it. You pay what you can afford; whatever remains of the included debt at completion is written off. Use the IVA calculator to see your own arithmetic rather than an advertised percentage. Council tax has its own write-off routes — can council tax debt be written off? covers all five. Consolidation belongs on the reorganise side of that line — what it is and when it makes debt worse. The DRO-or-DMP confusion is the most common in debt advice — settled here. A lump sum changes the calculation entirely — full and final settlement can clear debt for less without any formal solution.
A Debt Relief Order — for people in England and Wales with qualifying debts less than £50,000, disposable income of £75 a month or less, assets under £2,000 and a vehicle worth under £4,000. Not available to homeowners. It has no application fee, lasts 12 months, and the qualifying debt is written off at the end.
Bankruptcy — the application in England and Wales costs £680 and is made online. Most debts are discharged, usually after 12 months, but assets including a home can be at risk and some careers are affected.
In Scotland, a Protected Trust Deed writes off remaining debt after the term, and sequestration is the Scottish form of bankruptcy. These have their own rules and their own adviser routes.
Routes that do not write anything off
A Debt Management Plan reorganises payments; the aim is repayment in full, and interest freezes are at each creditor’s discretion. Debt consolidation moves debt, usually adding cost. Scotland’s Debt Arrangement Scheme freezes interest by law but repays in full — Nothing is written off. Breathing Space pauses enforcement for 60 days; it writes off nothing either. All of these can still be the right route — they are just not write-offs, whatever an advert implies.
How to read a “write off up to 85%” advert
The percentage is drawn from that firm’s own past clients over a stated period — sometimes an average, sometimes the top slice. It is not an offer, and it cannot be, because your figure depends on your affordable payment, the proposal’s fees and a creditor vote carried by 75% by value. If a site quotes a percentage before anyone has seen your circumstances, or dresses itself up as a government scheme, treat that as the warning sign regulators say it is.
Where we stand
My Debt Cleared is an information and marketing introduction service. We do not give advice and we quote no write-off percentages, because we have no client base to average and would not pretend otherwise. Whether any write-off route fits you is a judgement only an authorised adviser can make — and free, impartial debt advice is available across the UK before you commit to anything.