Fresh Start Debt Support
Unsure which debt solution is right for you? In this complete guide, we’ll break down and compare the most common debt options available in the UK: Individual Voluntary Arrangement (IVA), Debt Management Plan (DMP), Debt Relief Order (DRO), Bankruptcy, and the Trust Deed (Scotland only).
Each option has different advantages depending on your circumstances — whether you want to write off debt, freeze interest, stop bailiffs, or simply make your payments more manageable. Our expert comparison will help you understand:
If you're facing unaffordable debt, you're not alone — and there are ways to regain control without stress.
Check Which Debt Plan Fits MeAn Individual Voluntary Arrangement (IVA) is one of the most popular formal debt solutions in the UK, allowing you to legally write off a portion of your debt while making affordable monthly repayments over a set period (usually 5 or 6 years). It’s approved by the courts and managed by a licensed insolvency practitioner.
With an IVA, you can often write off up to 85% of your unsecured debt if your circumstances qualify. Once it’s approved, all interest and charges are frozen, and creditors can’t take further legal action or send bailiffs. Your payments are based entirely on what you can afford.
You may qualify for an IVA if:
While IVAs do appear on your credit file and public insolvency register, many people find it a small price to pay for the relief of becoming debt-free legally.
Check If I Qualify for an IVAA Debt Management Plan (DMP) is an informal debt solution that allows you to repay your unsecured debts through one monthly payment based on what you can afford. It’s a flexible way to manage your finances without committing to insolvency or legal arrangements.
With a DMP, your payment is divided between your creditors, and many lenders agree to freeze interest and charges to help you get back on track. It’s commonly used for credit card debt, catalogue accounts, payday loans, and overdrafts.
You might benefit from a DMP if:
Pros:
Cons:
Many people start with a DMP as a way to regain control quickly, then later consider moving to a more permanent solution like an IVA once their situation stabilises.
Check If a DMP Is Right for MeA Debt Relief Order (DRO) is a low-cost debt solution designed for individuals with low income, minimal assets, and relatively low debt levels. It allows you to write off your debts completely after 12 months — if your financial situation hasn’t improved in that time. During the 12-month “moratorium” period, you make no payments at all.
DROs are ideal for people who simply cannot afford to repay their debts and don’t own a house or significant assets. It offers legal protection from creditors and stops all enforcement action, interest, and charges.
You may be eligible for a DRO if you:
Pros:
Cons:
Many people on Universal Credit or with no surplus income find that a DRO is the fastest and cheapest route to becoming debt-free legally.
See If I Qualify for a DROBankruptcy is a formal insolvency solution designed for individuals who are unable to repay their debts. It offers a clean slate by legally writing off most unsecured debts, giving you a chance to start over financially. While it has serious consequences, it may be the right option for some people who have exhausted all alternatives.
Bankruptcy typically lasts 12 months. During this time, your finances are handled by an Official Receiver. Once the process is complete, most of your debts are legally written off — including credit cards, loans, overdrafts, council tax, and more.
You can apply for bankruptcy online through the Insolvency Service. It costs £680, which must be paid before your application is reviewed. If approved, you will be declared bankrupt and all enforcement action against you will stop.
While both solutions write off debt, an IVA allows you to keep your assets and make manageable monthly payments — whereas bankruptcy may involve asset loss but no ongoing repayments (unless you have surplus income). Many choose an IVA over bankruptcy to protect their home or career.
Bankruptcy can feel like a last resort, but for some, it’s a powerful tool to reset their finances and eliminate unmanageable debt for good.
Find Out If Bankruptcy Is Right for MeA Trust Deed is a formal debt solution available only in Scotland. It’s very similar to an IVA, offering legal protection from creditors and the chance to write off unaffordable debt. A Protected Trust Deed (PTD) is legally binding and must be set up by a licensed insolvency practitioner.
Once protected, creditors can no longer contact you, add interest, or take enforcement action. You’ll make one affordable monthly payment for 4 years, after which any remaining debt is written off.
You may be eligible for a Trust Deed if:
Common debts included:
An IVA is available in England, Wales, and Northern Ireland. A Trust Deed is for people in Scotland only. Both offer legal protection and debt write-off — but a Trust Deed usually lasts 4 years instead of 5 or 6 with an IVA.
If you live in Scotland and are struggling with debt, a Protected Trust Deed could be your most effective way to regain control.
Check If I Qualify for a Trust DeedHere’s a quick comparison of the main debt solutions discussed above. Use this table to see which might be best for your personal circumstances.
There’s no one-size-fits-all answer. What works for one person may not suit another — which is why our specialists assess your finances confidentially and explain all your options before anything moves forward.
Whether you need to stop bailiffs, freeze interest, avoid a CCJ, or write off debt, there’s usually help available — often within 24 hours.
Our mission is simple: to give you a Fresh Start and take the pressure off, fast.
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