Debt solutions compared: the master table
Figures are for England and Wales as of October 2026. Scotland has different solutions: the Debt Arrangement Scheme (Debt Payment Programme), Protected Trust Deeds, sequestration and the Minimal Asset Process.
| Feature | DMP | IVA | DRO | Bankruptcy |
|---|---|---|---|---|
| Type | Informal | Formal, legally binding | Formal insolvency | Formal insolvency |
| Debt written off? | No – repay in full | Unpaid balance at the end (varies) | Yes, after 12 months | Most debts, on discharge |
| Typical length | Until repaid | 5–6 years | 12 months | 12 months (income payments up to 3 years) |
| Cost | Free from charities | Fees come out of your payments | No fee | £680 |
| Debt limits | None | No legal minimum; usually £7,000–£10,000+ | Up to £50,000 | No minimum to apply yourself |
| Spare income needed | Some, even a small amount | Enough for regular payments | £75 a month or less | Not required |
| Assets | Not affected | Usually kept; may need to release home equity | £2,000 or less (vehicle up to £4,000) | Can be sold, including home equity |
| Legal protection from creditors | No | Yes, for included debts | Yes, for included debts | Yes, for included debts |
| Public Insolvency Register | No | Yes, until it ends | Yes, until 3 months after it ends | Yes, until discharge |
| Credit file | Defaults/arrangement markers (defaults drop off after 6 years) | 6 years | 6 years | 6 years |
Read the full guides: debt management plans, IVAs, debt relief orders and bankruptcy, or see all debt solutions.
Which debt solution should I consider?
These rules of thumb can help you see where to start. They are not a recommendation – a free adviser will look at your full budget.
- If you could repay everything in a reasonable time with interest frozen, consider a DMP or asking creditors to freeze interest.
- If you have £75 a month or less spare, debts up to £50,000 and few assets, check whether you qualify for a DRO – see DMP vs DRO.
- If you own a home and have steady income but can't repay in full, an IVA is often considered – see IVA vs DMP.
- If you can't repay, don't qualify for a DRO and have few assets, bankruptcy may be the fresh start you need – see DMP vs bankruptcy and IVA vs bankruptcy.
- If creditors are chasing you while you decide, Breathing Space can pause most action and interest for up to 60 days.
- If you have a lump sum, you could offer a full and final settlement for less than you owe.
- If you are up to date and your credit is still good, a consolidation loan or the debt snowball method may help – but only if it lowers the total cost.
Deal with priority debts first. Rent or mortgage arrears, council tax, energy arrears, court fines and child maintenance carry the most serious consequences. None of the solutions above stops you needing to keep up with ongoing priority bills.
Not sure which applies to you?
Free debt advice services can compare every option against your real budget, at no cost.