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Debt Solutions

These are the list of debt solutions available to people living in the UK and how people can enter them to resolve their financial problems.

Some debt solutions are designed to help people repay debt while allows allow people to write off debt or just a percentage of it. Knowing the benefits and consequences of each is key before entering them.

English, Welsh & N.Irish Debt Solutions

Debt Management Plan:

The first solution people in debt should consider entering is a debt management plan. This solution will allow people to repay the debt over an agreed and sensible time period, such as 3 -4 years. People can enter a debt management plan for free through certain organisations who don’t charge.


If someone has considered the debt management plan but it’s going to take too long to complete or interest and charges aren’t frozen, an IVA could be a better solution.

An IVA is short for individual voluntary arrangement and it helps people repay a percentage of their debt over 5 years with any remaining debt written off.

Wrongly entering an IVA could mean people lose assets, income or inheritance so it’s key to seek qualified & professional debt advice.


If someone can’t afford to make a contribution to their debt or the IVA proposal put forward is rejected by creditors they should consider bankruptcy.

There are different routes to entering bankruptcy and in some cases people will still be asked to make repayments to their debt if they have a disposable income.

Any additional assets, income or money will be taken to be paid towards the debt and bankruptcy fees if there are sufficient funds.

Scottish Debt Solutions

Debt Arrangement Scheme:

Allows someone to repay their debt over a period of time similar to debt management plan but guarantees to freeze interest and charges.

A DAS is a formal debt solution which means once it begins it cannot be changed by either the creditors or the debtor.

Protected Trust Deed:

If someone has too much debt or too little income to enter a debt arrangement scheme they should consider entering a protected trust deed.

The trust deed allows people to repay a percentage of their debt over 4 years and any still outstanding at the end if written off. This is the equivalent to the IVA in the rest of the UK however there are differences with how and who can enter it.


When both a debt arrangement scheme and protected trust deed are not suitable the last resort to dealing with debt should be sequestration.

If someone is unable to make any repayments and has no assets they could enter the sequestration and be discharged in 1 year without paying anything to their debt.

Some people have wrongly entered sequestration believing they could write off debt but any disposable income or assets will be taken.

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