An IVA isn't right for everyone. Explore every formal and informal UK debt solution — with clear, honest comparisons so you can make the right choice for your situation.
There are several routes out of problem debt in the UK. Each has different eligibility criteria, implications for your credit file, employment, assets, and long-term financial health. This page gives you an honest overview of each — click any card to read the full detailed guide and see a side-by-side comparison with an IVA.
An informal arrangement — often set up free by a debt charity — where you make one reduced monthly payment that is divided among your creditors. You repay the full debt over a longer period, but creditors may agree to freeze interest.
Full DMP guide & IVA comparison →A formal insolvency solution for people with debts under £30,000, minimal assets, and very low income. Provides a 12-month moratorium — if your situation hasn't improved, all included debts are written off. Setup costs just £90.
Full DRO guide & IVA comparison →A formal insolvency process that writes off debts. Usually discharged within 12 months, but assets (including your home) may be sold. Employment in certain regulated professions may be affected. Carries significant restrictions.
Full Bankruptcy guide & IVA comparison →Not a formal insolvency procedure. A new loan is used to pay off all existing debts — ideally at a lower interest rate — leaving one monthly payment. Requires adequate credit to be accepted. You repay the full amount borrowed.
Full Consolidation guide & IVA comparison →The Scottish equivalent of an IVA, available only to Scottish residents. A formal agreement overseen by a Trustee, typically lasting 4 years. Remaining debt is written off at the end. IVAs are not available in Scotland.
Full PTD guide & IVA comparison →Directly contacting creditors (or using a free charity to do so on your behalf) to agree on reduced payments, payment holidays, or interest/charge freezes. Not legally binding, but can be effective for temporary financial difficulty.
Full guide & IVA comparison →All six solutions compared across the factors that matter most. Always seek regulated advice before choosing — your situation is unique.
| Feature | IVA | DMP | DRO | Bankruptcy | Consolidation | PTD (Scotland) |
|---|---|---|---|---|---|---|
| Legally binding on all creditors | Yes | No | Yes | Yes | No | Yes |
| Remaining debt written off | Yes | No | Yes | Yes | No | Yes |
| Home usually protected | Usually | Yes | Yes | At risk | Yes | Usually |
| Keep your job (most roles) | Usually | Yes | Usually | Some restrictions | Yes | Usually |
| Creditor contact stops | Yes | Usually | Yes | Yes | No | Yes |
| Interest frozen | Yes | Sometimes | Yes | Yes | No | Yes |
| Appears on credit file | 6 years | 6 years | 6 years | 6 years | 6 years | 6 years |
| On public insolvency register | Yes | No | Yes | Yes | No | Yes |
| Minimum debt | ~£6,000 | None | None (max £30k) | None | None | ~£5,000 |
| Typical duration | 60 months | Varies (3–10 yrs) | 12 months | 12 months | Loan term | 48 months |
| Setup / application fee | Included in payments | Free (charity) | £90 | £680 | Varies | Included in payments |
| Regulated by | Insolvency Service / IP | FCA (if commercial) | Insolvency Service | Insolvency Service | FCA | Accountant in Bankruptcy |
| Available where | England, Wales, NI | UK wide | England, Wales, NI | UK wide | UK wide | Scotland only |
IVA column highlighted for reference. This table provides general guidance only. Individual circumstances vary — always seek regulated advice.
Use our free eligibility checker, or speak to a free regulated debt adviser who can assess your full situation.