IVA FAQs › Debt solutions explained
The full pictureAn IVA is just one way to deal with problem debt. Here is a plain-English overview of the main options across the UK, with links to a fuller guide on each.
Individual Voluntary Arrangement (IVA), a binding deal to pay what you can over five to six years, with the rest written off. For England, Wales and Northern Ireland.
Debt Relief Order (DRO), for people on low incomes with few assets and smaller debts; freezes debts for a year, then writes them off.
Bankruptcy, writes off most debts and offers a fresh start, usually after a year, but puts assets at greater risk.
Debt Management Plan (DMP), an informal plan to repay your debts in full over a longer period, often arranged free through a charity.
Full and final settlement, a one-off lump sum offered to settle debts for less than the full balance, sometimes used within an IVA.
Breathing Space (the Debt Respite Scheme), a temporary pause on most interest, fees and enforcement while you get advice, in England and Wales.
Protected Trust Deed, the Scottish equivalent of an IVA.
Debt Arrangement Scheme (DAS), a Scottish scheme to repay debts in full over time with interest frozen.
See our Scotland guide for how these fit together.
Each option has its place, and the wrong one can be costly. Before deciding, get free, impartial advice that compares them all against your situation, including regional differences for Northern Ireland and Scotland.
You never have to pay anyone to find out where you stand. These services are free, independent and will go through every option with you.