If you're struggling with debt, there are proven solutions. Bankruptcy is just one option — and often not the best one. Explore alternatives, get free advice, and find a path forward.
If you're struggling with debt, these are the most important things to do right now.
The worst thing you can do is bury your head in the sand. Creditors can't help you if they don't know you're struggling. Open your post, answer the phone.
StepChange, National Debtline, and Citizens Advice offer free, confidential debt advice. They don't charge and they don't sell your data.
StepChange Debt Charity →Mortgage/rent, council tax, and energy bills come first. Credit cards and personal loans are lower priority. Never borrow to pay priority bills.
Some companies charge upfront fees for debt advice that's available free from StepChange, National Debtline (0808 808 4000), or Citizens Advice. NEVER pay for debt advice — free, impartial help is available.
There are several debt solutions in the UK. Each has different implications for your credit score, assets, and timeline.
| Solution | Best For | Duration | Credit Impact | Write-off? |
|---|---|---|---|---|
| Debt Management Plan (DMP) | Affordable payments but can't pay in full | Variable (until debt cleared) | 6 years on file | No — you pay everything |
| Individual Voluntary Arrangement (IVA) | Unsecured debt over £5,000, can't pay, want to avoid bankruptcy | 5-6 years | 6 years on file | Yes — remaining debt written off |
| Debt Relief Order (DRO) | Low income, under £30k debt, minimal assets | 12 months | 6 years on file | Yes — debt written off after 12 months |
| Bankruptcy | Last resort — serious debt, no other option | Usually 12 months | 6 years on file (public record) | Yes — most debts cleared |
| Debt Consolidation Loan | Good credit, multiple debts, want single payment | 1-7 years (loan term) | May improve if paid on time | No — new loan, must repay |
| Administration Order | County court judgments, under £5,000 debt | Variable | 6 years on file | Yes — if payments maintained |
Bankruptcy should be your last resort. These alternatives may give you a better outcome.
You agree with creditors to pay what you can afford. No interest is frozen voluntarily. You keep your assets but must make regular payments until debt is cleared.
Free via: StepChange
A legally binding agreement. You pay what you can afford for 5-6 years, then remaining debt is written off. Protects assets like your home.
Must be set up by a licensed Insolvency Practitioner
For low-income individuals with under £30k debt and minimal assets. No payments required — after 12 months, the debt is written off. £90 fee.
Available via Citizens Advice
If you're considering bankruptcy, speak to a free debt adviser first. They'll help you explore all options before making a decision.
Free, impartial, confidential. Available 8am-8pm Mon-Fri.
Your credit takes a hit during debt solutions, but you can rebuild. Here's how to recover after an IVA, DRO, or bankruptcy.
After a debt solution ends, check all three agencies (Experian, Equifax, TransUnion) for errors. Old debts should be marked as satisfied or removed.
Check your credit report →Use a credit builder card responsibly — small purchases, paid in full each month. After 6-12 months, your credit score will improve significantly.
Compare credit builder cards →Use free credit monitoring services to track your score improving over time. Seeing the numbers go up is motivating and helps you spot issues.
Free ClearScore monitoring →If your bank account was affected by bankruptcy, open a basic bank account. These have no overdraft but give you a clean banking foundation.
Possibly. If you have significant equity in your home (over £1,000), the official receiver may require you to sell it. If you rent or have minimal equity, you can usually stay. An IVA may protect your home better.
Bankruptcy usually lasts 12 months. After that, most debts are written off. However, the bankruptcy stays on your credit file for 6 years and may affect your ability to get credit, certain jobs, and rental agreements.
Student loans, court fines, child support, maintenance payments, and debts obtained through fraud cannot be written off in bankruptcy. These remain payable.
Yes, but you'll start with poor credit. After your debt solution ends, use a credit builder card for 6-12 months. Your score will gradually improve. Many people get mortgages 3-6 years after bankruptcy.
Yes. StepChange, National Debtline (0808 808 4000), and Citizens Advice are all free, impartial, and confidential. They don't charge for advice, don't sell your data, and don't recommend paid products. Never pay for debt advice.
StepChange Debt Charity — the UK's leading free debt advice service. They've helped over 800,000 people find a way out of debt.
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