When you can't afford to pay back your debts at the time they're due, it's known as Insolvency.
If you are insolvent, then there are several debt solutions available. These are legally binding, so they give you protection from your creditors and write off some or all of your debts.
In most cases insolvency solutions are only suitable if your debts add up to more than the value of the assets you own. However, each insolvency solution is different and has its own qualifying criteria. You can find out more about some of these here:
Insolvency in England, Wales and Northern Ireland
- Bankruptcy can help you write off debt you have no realistic hope of repaying.
- An individual voluntary arrangement (IVA) allows you to make reduced payments over 60 or 72 months, following which the rest of the debt is written off.
- A debt relief order (DRO) can write off debt for people who have a small disposable income, few assets and a relatively low level of debt.
To get yourself assessed for free, without obligation; an assessment that's tailored to your unique circumstances - use this link
Insolvency in Scotland
- Sequestration is the Scottish form of bankruptcy.
- A trust deed is only available in Scotland. It's similar to an IVA except payments are generally made over three years.
- A Minimal Asset Process bankruptcy (MAP) is only available in Scotland for people who have no disposable income and few assets.