Trying to decide which debt solution is right for you can be daunting and confusing. The following table gives a summary of the options available in England and Wales and shows how they compare to each other.

Find out more about which solution is right for you

Where to start

• Find the right solution – Use the “Which way should I turn” form to get your FREE DEBT REPORT
• Ask the experts – use the Beat My Debt Forum
• Call us now – speak to one of our advisors in confidence to see if an IVA can work for you.

Take the first step to beating your debt NOW – Call us free on 0800 077 6180

Notes

1 – If you carry out a debt management plan, it is possible to settle debt with a lump sum payment and thus write off some of your debt. However, this does not happen as a standard part of the debt management process.

2 – If you maintain the agreed payments in your debt management plan, it is likely that your creditors will stop chasing you for payment. However, this is not guaranteed. Creditors may also ask you for an increased payment at any time

3 – Your creditors will not chase you for payment as long as you maintain the agreed minimum monthly payment.

4 – An IVA is not advertised publicly. However, a record of every person who undertakes an IVA is made in the insolvency register which is publicly accessible via the internet.

5 – Since April 2009, bankruptcy is no longer advertised in the local newspaper. However, a record of the bankruptcy is made in the insolvency register which is publicly accessible via the internet.

6 – As with both IVAs and Bankruptcy, a debt relief orders are recorded in the insolvency register which is publicly accessible via the internet.

7 – If you carry out an IVA and are a home owner, you keep control of your home and will not be forced to sell it.  However, if there is equity in your property, you may have to release this as part of your IVA.

8 – If there is little or no equity in your home, you will normally be able to buy back the equity from the official receiver meaning that you will be able to keep your home. 

9 – There is no reason why you cannot negotiate a debt management plan with your creditors yourself. However, many people prefer not to do this. Where this is the case, a debt management company can provide these services.

10 – There is no need to involve any third party or professional to help you declare bankruptcy. However, the bankruptcy application form is complicated and must be completed correctly. As such, many people choose to pay a professional to help complete the application form.

11 – There are fees associated with an IVA, however these are normally taken directly from the monthly payments you make. As such, you should not have to pay anything over and above the monthly payments you make to implement an IVA.

Note – Some providers will charge and instruction or drafting fee to put an IVA in place. However, there are many others which will provide this service for free.

12 – If you implement a debt management plan yourself, you will of course not have to pay. There are also charitable organisations which provide debt management plan services for free. If you use a professional debt management company you must expect to be charges for this service.

13 – When you declare yourself bankrupt, you will have to pay a fee at the court of £510. If you require professional help to complete your application form, there will be an additional charge for this.