Debt options explained
A factual overview of common ways people in England and Wales may deal with debt. The right route depends on individual circumstances, so use regulated advice for a personalised recommendation.
GOV.UK says the options available depend on factors such as the amount owed, income and assets. Some routes are informal. Others are formal insolvency procedures with significant consequences.
Individual Voluntary Arrangement
Formal agreement administered by an insolvency practitioner.
Debt Relief Order
Formal debt relief for people who meet specified criteria.
Debt Management Plan
Repayment arrangement for eligible non-priority debts.
Bankruptcy
Formal insolvency with potentially significant asset and credit consequences.
Breathing Space
Temporary creditor protections while you receive debt advice and make a plan.
Informal repayment
Direct arrangements with creditors may be possible in some circumstances.
Formal debt solutions can affect your credit record, assets, employment or ability to obtain credit. A regulated adviser can consider your full circumstances.
Primary sources
- GOV.UK: Options for dealing with your debtsPrimary or public authority source, checked 2 November 2026.
- MoneyHelper: Options for clearing your debtsPrimary or public authority source, checked 2 November 2026.
- FCA: Unauthorised or unsuitable debt advicePrimary or public authority source, checked 2 November 2026.