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Insolvency Options Explained




Insolvency Options Explained

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Insolvency Advice

Understand your insolvency options.

If your debts are unmanageable, a formal insolvency solution may provide the fresh start you need. Our advisers will explain every option clearly so you can make an informed decision.

  • IVA, DRO, and Bankruptcy all explained
  • Qualified advisers, FCA regulated
  • Legally binding protection options available
  • Individual assessment before any recommendation

Debt solutions may affect your credit rating and are not suitable in all circumstances. Your individual circumstances will be assessed before any recommendation is made. Help With Debt Ltd is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales.

Get free advice

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How it works

Free Initial Call

Speak to a qualified adviser in confidence about your circumstances.

Debt Assessment

We review your income, outgoings, and debts in full.

Options Explained

All suitable solutions are explained clearly with no pressure.

Your Choice

You decide what’s right for you, with full support from our team.

Debt solutions explained

📋

Individual Voluntary Arrangement (IVA)

  • Legally binding — stops creditor action
  • Remaining debt written off on completion
  • One fixed, affordable monthly payment
  • Typically lasts 5 years (6 for homeowners)
  • Recorded on credit file for 6 years
  • Requires 75% creditor approval by value
📅

Debt Management Plan (DMP)

  • No formal insolvency — less severe on credit
  • Flexible if your circumstances change
  • Can be arranged quickly
  • Full debt remains payable — nothing written off
  • Not legally binding on creditors
  • Interest may not be frozen
⚖️

Debt Relief Order (DRO)

  • Debts written off after 12 months
  • Stops creditor contact immediately
  • No monthly repayments during moratorium
  • Strict eligibility criteria apply
  • Not available to homeowners
  • Recorded on credit file for 6 years
🏦

Bankruptcy

  • Debts discharged after 12 months
  • Immediate legal protection from creditors
  • Provides a definitive clean break
  • Can result in loss of assets including home
  • Restrictions on financial activity during discharge
  • Can affect certain types of employment
🔁

Debt Consolidation

  • Combines multiple debts into one payment
  • May lower your monthly outgoings
  • Can reduce interest if rate is lower
  • Does not reduce the total amount owed
  • May extend the overall repayment period
  • Requires sufficient credit to qualify
🛡️

Breathing Space

  • 60 days of legal protection from creditors
  • Interest and charges frozen during the period
  • Time to seek proper advice without pressure
  • Temporary measure — not a debt solution itself
  • Requires active engagement with a debt adviser
  • Cannot be used repeatedly

Debt solutions may affect your credit rating and are not suitable in all circumstances. Your individual circumstances will be assessed before any recommendation is made. To find out more about managing your money and getting impartial debt advice, visit moneyhelper.org.uk.

Help with Debt Ltd (FCA FRN: 1058208) is an Appointed Representative of Dee Valley Finance Limited (FRN: 811106), authorised and regulated by the Financial Conduct Authority.