Compare IVA vs DMP vs Bankruptcy

If you're overwhelmed by debt and unsure which route to take, comparing the most common UK debt solutions is a smart first step. Here’s how an IVA, DMP, and Bankruptcy compare across different factors:

What is an IVA?

• Legally binding agreement lasting 5-6 years
• Write off remaining debt at the end of the term
• Stops interest, charges and creditor contact
• Protects your home and car in most cases
• Must be approved by 75% of creditors by debt value

What is a DMP?

• Informal, flexible payment plan to repay full debt
• No legal protection from creditors, but often accepted
• Interest and charges may continue unless frozen
• Suitable for lower levels of debt
• No upfront fees with Fresh Start Debt Support

What is Bankruptcy?

• Legal declaration that you cannot pay your debts
• Write off most debts immediately after bankruptcy order
• Public record and impacts employment in some sectors
• May involve sale of assets or income payments for up to 3 years
• Typically discharged after 12 months

Each solution offers a different path to financial freedom. It’s important to choose based on your income, debt level, employment, and future goals. Our expert team can help you find the best solution for your unique situation.