In the UK, there are multiple debt solutions out there for you to choose from, and we understand if things might start to get confusing.

Whilst you may not qualify for every solution, it can even become difficult to choose between the solutions that you do qualify for. To make things easier, we’ve written up some direct comparisons of the debt solutions available to consumers in the UK at the moment:

Bankruptcy or Debt Management Plan

These are two very different solutions. Bankruptcy is a legal process, whereas a Debt Management Plan is informal.

Bankruptcy or Debt Relief Order

These two solutions have very similar processes, but the qualifying criteria for each of them differ greatly.

Debt Management Plan or Debt Relief Order

A DMP is an informal solution and is widely accessible. A DRO is legally binding with stricter qualifying criteria.

IVA or Bankruptcy

Both of these solutions are legally binding, but there are some significant differences to be considered.

IVA or Debt Management Plan

Both of these solutions involve making affordable repayments to your creditors. With an IVA, a portion is also written off.

IVA or Debt Relief Order

These two solutions offer you legal protection with different processes. The qualifying criteria is also more refined for a DRO.

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*To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.