Debt Solutions
Individual Voluntary Arrangement (IVA)
A legally binding agreement between you and your creditors to pay an affordable monthly payment for a set period of time – usually 5 or 6 years, and then any remaining debt will be written off.
Use our online IVA Calculator for an estimate of how much debt you might be able to write off.
Debt Management Plan (DMP)
An informal agreement between you and your creditors to pay back your debts. Work out what’s really affordable for you and pay one set monthly payment, which is then divided between your creditors. A DMP is not a statutory insolvency solution, you’re not tied in for a minimum period and can make changes to your payment if your circumstances change.
Minimal Asset Process (MAP) - Scotland Only
A route into sequestration (bankruptcy) for people with no assets who are on a low income or benefits. Rather than having to pay the standard £200 upfront fee for sequestration, the fee for MAP is just £90. MAP lasts for a shorter period of time than sequestration – usually just 6 months. The upfront fee is much cheaper and the qualifying criteria is less than with sequestration so if you are struggling to make ends meet and have no spare income with which to repay your debts after all your essential household expenditure has been taken care of, it could be worth considering MAP.
Bankruptcy
If you have a debt problem, one of your options for sorting it out might be bankruptcy. You can apply for bankruptcy if you can’t pay back your debts. As well as applying for bankruptcy yourself, someone else you owe money to (a creditor) can apply to make you bankrupt, even if you don’t want them to. For a creditor to make you bankrupt, you must owe at least £5,000. Remember, bankruptcy might not be your only option and it might not be the best one for you.
Debt Relief Order (DRO)
A Debt Relief Order (DRO) is one way to deal with your debts if you meet certain criteria:
- Your debts are no more than £50,000
- You don’t own your home
- You’ve got £75 or less leftover each month after you’ve paid your usual household expenses
- Other savings or things of value you own are worth less than £2,000
- You don’t own a car worth £4,000 or more unless it’s one that’s been specially adapted because you have a disability.
Protected Trust Deeds (PTD) - Scotland Only
A formal debt solution intended to take away the stress of multiple and/or unmanageable debt payments by combining these debts into a single regular payment. It can offer protection from creditor legal action and protect repossession of assets, including your home. Trust deeds can be voluntary, but it is only when it becomes protected that you are offered these kinds of legal safeguards and they become binding on creditor
Dealing with debts can be incredibly stressful
Debt and Mental Health
If you feel that your financial situation is impacting your health, then there is help available to you.
We’ve gathered some information together that may help you recognise signs that you may be struggling, as well as further support that’s available to you.
Dealing with debt can be difficult, so we've broken it down into 3 easy steps.
Speak to a debt specialist
Our friendly, experienced team will explain the IVA process.
Explore your options
There’s no pressure to make a quick decision. Our goal is to help you understand if an IVA is suitable.
Choose your debt solution
Select the best fit for your circumstances and lifestyle.
Check if you qualify
How we helped Julie
Friendly reassuring and professional.
I would highly recommend money advice, from the initial conversation my mind was put at ease and the whole process was fast efficient and I was kept updated every step of the way.
£100
Monthly payment
£25,208
Debt amount
77%
Debt write off
Julie
How we helped Chelsea
Fast. Friendly. Efficient.
Absolutely brilliant. Very fast, friendly and efficient. Haley and Amy are lovely ladies that genuinely made an embarrassing situation for me feel a whole lot better. Thank you so much.
£90
Monthly payment
£9,097
Debt amount
41%
Debt write off
Chelsea
How we helped Ewan
Excellent service
Very well-spoken and clear at getting the message across. Answered all questions promptly and with confidence.
£200
Monthly payment
£18,026
Debt amount
34%
Debt write off
Ewan
How we helped Kirsty
Very helpful and easy to talk to
Really makes you feel at ease. Really easy to talk to, explained everything in detail and again when needed.
£104
Monthly payment
£28,407
Debt amount
79%
Debt write off
Kirsty
How we helped Barry
Great service and understanding
Really understanding and caring, great advice from lovely staff who made me feel at ease from start to finish and have helped relieve my stressful situation.
£150
Monthly payment
£16,912
Debt amount
47%
Debt write off
Barry
How we helped Samantha
Fantastic service
Simple and easy to start my path to becoming debt free. No judgement and a straightforward process. Everything was explained clearly without any jargon. I can’t thank Shaun enough.
£100
Monthly payment
£7,586
Debt amount
21%
Debt write off
Samantha
Best Debt Solutions Tips
You can request a Budgeting Planner from any of our advisors by calling 0333 242 0013. It gives a range of advice to follow, from increasing your income to knowing your debts properly by offering a free soft credit search that won’t affect your credit.
Budgeting is a great way to get in control and on top of your debts. By following our budgeting advice, you should be able to work out your ingoings and outgoings and clearly visualise what money you have left each month to pay to your creditors.
We suggest making a list of your creditors, along with money owed and due dates. Making note of this information with pen and paper is an invaluable way of relieving the likelihood of forgetting payment dates and helps you feel on top of things.
Cut back unnecessary spending by ending any subscriptions that you don’t need. Give your phone, water, and electricity gas and internet providers a call to see if you are on the most suitable plan for you. You might be paying for more than you actually use per month and this could save you money.
There are many free comparison websites online, which may be useful to find out the cheapest options for you, from car insurance to your weekly food shop.
Ensure that you’re receiving as much money as you’re entitled to. There may be benefits that you unknowingly qualify for or similar help from the government or local council. Consider whether you have any spare time to fit in some overtime or even a second job.
We show you the advantages/disadvantages of the individual solutions for you to be able to make an educated decision as to which route is best to take.
There are a number of unique options, so make sure that you take the time to read about and understand what each one would mean for you. If necessary, discuss with family or your partner to see which is best for your situation.
Furthermore, you can contact or request a free call back from one of our experienced advisors who will help you find the right solution for you and help you with any queries or uncertainties that you may have.
Facing debt is the only way that they will go away. A simple call to us can get the ball rolling with clearing your debts, as we can advise you on your individual circumstances and ultimately, get you on your way to being debt-free.
Money Advice help over 3,000 people in the UK every year
Our team of experts help thousands of families get their finances back on track with an IVA.
Is an IVA right for you?
We can discuss your eligibility for an IVA
Prefer to speak later?
We will offer support to help you find a solution.
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.