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Debt help, and the options nobody explains properly

Every formal debt solution in England and Wales, what each one costs, and who each one actually suits. The advice to get you there is free, and always should be.

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The short answer

Start with free advice from StepChange, National Debtline or Citizens Advice, and ask about Breathing Space, which pauses interest and contact for up to 60 days. From there the formal options are a debt management plan, an individual voluntary arrangement, a Debt Relief Order if you owe under £50,000, or bankruptcy at £680.

60 daysBreathing Space protection
£50,000Debt Relief Order limit
£680Cost to apply for bankruptcy
6 yearsHow long most entries stay on file
What is on this page
  1. Before any formal solution
  2. The formal options, compared
  3. Debt Relief Orders, in detail
  4. Bankruptcy, honestly
  5. What to avoid
  6. Life afterwards

Before any formal solution

Two things come before choosing a debt solution, and both are free.

First, get a proper income and expenditure worked out with a debt adviser. Creditors treat a charity-prepared budget seriously in a way they do not treat a phone call from you.

Free debt advice is available from StepChange, National Debtline and Citizens Advice. None of them charge, and none of them will judge you.

Second, ask about Breathing Space. In England and Wales it gives up to 60 days where interest stops, charges stop and creditors cannot chase you. If you are in mental health crisis treatment it lasts for the treatment plus 30 days.

The formal options, compared

Option Who it suits Cost Credit file
Debt management plan You can pay something each month and want flexibility Free through a charity Affected while it runs, and after
Individual voluntary arrangement Larger debts, some assets, a steady income Fees taken from your payments 6 years from the start date
Debt Relief Order Owe under £50,000, little spare income, no home No application fee 6 years
Bankruptcy No realistic prospect of repaying £680 to apply 6 years
Administration order You have a county court judgment and small total debts Court fee taken from payments 6 years

England and Wales. Scotland has its own routes, including the Debt Arrangement Scheme and sequestration.

Debt Relief Orders, in detail

A Debt Relief Order writes off qualifying debts after twelve months. It is aimed at people with little income and few assets, and it is one of the cheapest ways out of an impossible situation.

  • You owe less than £50,000
  • You have less than £75 a month spare after core costs
  • You have less than £2,000 of assets
  • You do not own a vehicle worth £4,000 or more
  • You do not own your home
  • You have lived or worked in England or Wales in the last three years
  • You have not applied for a Debt Relief Order in the last 6 years

You cannot apply directly. An approved intermediary at a debt charity applies for you, and that service is free.

Not sure which option fits?

A free debt charity will tell you within an hour. If you want a second pair of eyes on the wider picture first, ask us.

Ask us a question

Prefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.

Free debt advice is available from StepChange, National Debtline and Citizens Advice. We are not paid to send you there. Talking to us costs nothing either, and there is no fee to you for anything we arrange.

Household bills and paperwork spread across a kitchen table

Bankruptcy, honestly

Bankruptcy costs £680 to apply and takes around 28 days for a decision. You apply online, in England and Wales.

It is not the disaster people imagine, and it is not a soft option either. Assets can be sold, including a home with equity. Some professions restrict or prohibit it, so check your employment terms first.

Most debts are written off after twelve months. Student loans, court fines and some family court orders survive it.

What to avoid

Anyone charging a fee for debt adviceThe charities do the same job free. A fee-charging firm is taking money you need for your debts.
Adverts promising to write off debtSome are legitimate insolvency firms with sales teams. Others are lead generators. Go to a charity first and decide from there.
Borrowing to pay borrowingA new loan to clear old loans without changing the underlying gap moves the problem and adds interest.
Securing unsecured debt on your homeIt lowers the monthly payment and puts your house at risk. Consider it only after free advice, never before.

Life afterwards

Six years is the standard period for most entries. That sounds long from the start of it and short from the end.

Practical steps in the meantime: a basic bank account is available to anyone, including undischarged bankrupts. Keep every payment on time from the day the solution starts, because that new history is what rebuilds the file.

Our credit score page covers the rebuild in detail.

Post lying on a doormat inside a front door

Who this suits, and who it does not

Get advice this week if
  • You are missing rent, council tax or energy payments
  • You are using credit to pay other credit
  • A creditor has mentioned a county court judgment
  • You are only able to pay minimums and balances are rising
You may not need a formal solution if
  • The gap is temporary and you can see it closing
  • Creditors have agreed a plan you can actually afford
  • Your income is about to rise or a cost is about to end
  • You have savings that would clear the expensive debt

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

Check broadband at an address (Ofcom)

Want all your bills in one?

We can introduce you to a specialist who can combine your mobile, broadband and utilities into one bill. There's no fee for the introduction.

We don't provide these services ourselves. Switching household bills is not a regulated financial service, so FCA protections and the Financial Ombudsman do not apply. We'll only pass your details to the specialist if you ask us to. See our privacy notice.

Questions people actually ask

What are my options if I cannot pay my debts?
Depending on your circumstances: a debt management plan, an individual voluntary arrangement, a Debt Relief Order if you owe under £50,000, or bankruptcy. A free debt adviser will tell you which fit before you commit to any.
What is a Debt Relief Order?
A way of writing off qualifying debts after 12 months if you owe under £50,000, have under £75 a month spare, under £2,000 of assets and do not own your home. There is no application fee and a debt charity applies for you.
How much does it cost to go bankrupt?
£680 in England and Wales, payable before you submit. A decision usually takes around 28 days.
Will a debt solution stop the phone calls?
Breathing Space stops contact for up to 60 days. Once a formal solution is in place, creditors deal with the provider rather than you. Ongoing contact after that can be reported.
Do I have to pay for debt advice?
No. StepChange, National Debtline and Citizens Advice all give it free. Paying a fee buys you nothing the charities do not provide.
Can I keep my car?
In a Debt Relief Order, only if its value is under £4,000. In bankruptcy, a vehicle needed for work may be kept if its value is modest. A debt adviser will tell you where you stand.
Will my employer find out?
Bankruptcy is on a public register. Some professions require you to disclose it and a few restrict it. Debt management plans and Debt Relief Orders are less visible, though a Debt Relief Order is also on a public register.
What happens to joint debts?
A solution covers your share, not your partner's. The creditor can still pursue the other person for the whole amount, so both of you need advice, not just one.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.

Where to go next

Budgeting and debtStart here if the situation is not urgent.Should I consolidate?Before you secure debt on a home.Cannot pay a bill?What to do this week.Credit score explainedRebuilding afterwards.Debt consolidationHow we can and cannot help.Income protectionCover that stops it happening again.
Where these figures come from

Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.

We do not give regulated debt advice and we are not paid to refer you anywhere for it. The charities named on this page are free.

Last reviewed September 2026.

Get free advice first, then decide

We do not give debt advice and we are not paid to refer you. If you want to talk through the wider picture, we are here.

Start a conversation

Prefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.

Free debt advice is available from StepChange, National Debtline and Citizens Advice. We are not paid to send you there. Talking to us costs nothing either, and there is no fee to you for anything we arrange.