You’ll generally need £6,000 or more of unsecured debt, owe money to two or more creditors, have a steady income, and live in England, Wales, or Northern Ireland. A full assessment of your circumstances is needed to confirm eligibility.

Yes. An IVA is recorded on your credit file for six years from when it starts, and will affect your ability to get new credit during that time.

Only unsecured debts, such as credit cards, loans, overdrafts, and certain arrears. Secured debts like mortgages, and specific debts like student loans or court fines, cannot be included.

Speak to your Insolvency Practitioner as soon as possible a payment break may be an option. If payments stop altogether and the arrangement fails, your original debts return, and you become responsible for repaying them individually.

Yes. It’s recorded on the Insolvency Service’s public register and appears on your credit file, so it can be seen by credit reference agencies and, in some cases, employers.

A DMP is an informal UK debt solution that combines non-priority, unsecured debts such as credit cards, loans, and store cards into a single, more affordable monthly payment based on what you can genuinely afford.

The DMP itself isn’t listed on your credit file, but reduced payments usually cause the included accounts to show as defaults, which can affect your credit rating for around six years.

No. A DMP is an informal agreement, meaning creditors aren’t legally required to accept reduced payments or freeze interest, and can, in theory, continue to add charges or chase payment.

No. A DMP is built around repaying what you owe in full, just on more manageable terms it doesn’t include any debt write-off.

There’s no fixed term. It runs until all the included debts are fully repaid, so the length depends on your monthly payment amount and total debt.

Priority debts such as mortgage or rent arrears, council tax arrears, child maintenance, income tax arrears, and court fines generally can’t be included, as these carry more serious legal consequences if unpaid.

Both are possible. You can negotiate directly with creditors yourself at no extra cost, or use a specialist provider who manages the process for you, usually for a fee.

A DRO is a formal, legally binding UK debt solution for people with overwhelming debt but very limited income and assets. It gives 12 months of protection from creditors, after which qualifying debts are typically written off if your circumstances haven’t changed.

You’ll generally need under £50,000 in unsecured debt, assets worth £2,000 or less (plus a car valued at £4,000 or less), disposable income under roughly £75 a month, and no DRO in the last six years. A full assessment is needed to confirm this.

No, the £90 application fee that used to apply was removed in April 2024. There’s no cost to apply for a DRO.

Yes. It’s recorded on your credit file for six years, during which new credit is likely to be harder to access.

If your financial circumstances haven’t significantly improved, the debts included in your DRO are typically written off, and you’re discharged from the arrangement.

Yes, if your circumstances change and you become able to repay your debts, or you don’t cooperate with the DRO’s terms, it can be revoked, and in some cases a Debt Relief Restriction Order (DRRO) can extend restrictions for up to 15 years.

No. DROs apply to England, Wales, and Northern Ireland only. If you live in Scotland, a Minimal Asset Process (MAP) Bankruptcy or Trust Deed may be the more relevant options, speak to an adviser to find out what applies to you.

Joint bankruptcy (“joint petitions”) is only available to business partners combining shared business debts not to couples. If you and a partner both want to pursue bankruptcy, you’ll each need to file separately and pay the relevant fees individually.

You can apply for your own bankruptcy voluntarily through the Insolvency Service if your debts have become unmanageable. Alternatively, a creditor can apply for a “creditor’s petition” through the court if you haven’t met your obligations to them if granted, this starts bankruptcy proceedings against you.

It’s on the public record, but it isn’t actively publicised. Credit reference agencies, future lenders reviewing your credit report, and some employers running background or credit checks may become aware of it.

No. Only qualifying unsecured debts can typically be included. Secured debts, student loans, child maintenance arrears, and court fines generally remain your responsibility.

There’s a £130 application fee and a £550 bankruptcy deposit. You may also be required to make additional payments through an Income Payment Agreement, depending on your income.

Bankruptcy is recorded on your credit file for six years from the date it’s registered, even though the bankruptcy period itself usually lasts just 12 months.