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A few quick questions

debtreliefy is a lead generation firm only. We don't give debt advice and can't tell you which debt solution is right for you. We provide general information on debt options and, with your consent, pass your details to an FCA-authorised firm that can.

Your debt options explained

This is general information about the main debt solutions in the UK. It isn't advice, and debtreliefy can't tell you which option, if any, is right for you. An FCA-authorised debt adviser will look at your circumstances before recommending anything. All of these options can affect your credit rating, and some involve fees.

Debt Management Plan (DMP)

An informal agreement to pay your non-priority debts through one affordable monthly payment, shared between the people you owe.

Not legally binding: creditors don't have to agree, freeze interest or stop charges.
Lasts until the debts are repaid, which can take many years.
Some providers charge fees; free plans are available from debt charities.

Individual Voluntary Arrangement (IVA)

A formal, legally binding agreement with your creditors to pay what you can afford over a set period, usually five or six years, set up by an Insolvency Practitioner.

Any debt left at the end of a successful IVA is normally written off.
Your home or other assets may be affected, and fees apply.
It's recorded on the public Insolvency Register and can fail if you can't keep up payments.

Debt Relief Order (DRO)

A formal insolvency option in England, Wales and Northern Ireland for people with low income, few assets and relatively low debts. It's applied for through an approved intermediary.

Strict limits apply to your debts, income and assets.
Most debts in it are written off after 12 months if your situation doesn't improve.
It's recorded on the public Insolvency Register and affects your credit rating.

Bankruptcy

A formal insolvency option where your assets may be used to pay your creditors and most remaining debts are written off, usually after a year.

You may lose assets, including your home, and you may have to make payments for up to three years.
There is a fee to apply, and some jobs and roles are restricted.
It's recorded on the public Insolvency Register and seriously affects your credit rating.

Breathing Space

A government scheme that pauses most enforcement action, and freezes most interest and charges, while you get debt advice.

A standard Breathing Space usually lasts 60 days; there's a separate scheme for people in mental health crisis treatment.
It doesn't reduce what you owe, and you should keep paying what you can.
It can only be started by a debt adviser or an approved mental health professional.

Full and final settlement

Offering a creditor a lump sum that's less than you owe, in exchange for them writing off the rest.

Creditors don't have to accept, and you need the lump sum available.
Get any agreement in writing before you pay.
It can still show on your credit file.

Living in Scotland? Scotland has different options, such as Trust Deeds and the Debt Arrangement Scheme. Free advice is available from Money Advice Scotland.