Which option is right for you?
Compare Bankruptcy, IVA, DRO and DMP side-by-side — then take the 5-question assessment to get a starting suggestion.
Compare your four options
Eligibility
- Significant unsecured debt
- Unable to repay in reasonable time
- Little equity in home
Pros
- Most debts wiped in 12 months
- Stops creditor pressure and bailiffs
- Relatively cheap
- No monthly payments if no surplus
Cons
- On credit file 6 years
- Cannot act as company director
- Limited to £500 credit without disclosure
- Non-exempt assets may be sold
Best for: Significant unsecured debt, low income, limited home equity.
Eligibility
- Regular income for monthly payments
- Debt £10,000+
- Some home equity protection
Pros
- Home normally protected
- Fixed end date
- Less stigma than bankruptcy
- Creditor pressure paused
Cons
- Higher fees than bankruptcy
- 5 years of payments
- Failure means risk of bankruptcy
- Dividend to creditors required
Best for: Stable income, home you want to protect, mid-range debt.
Eligibility
- Debt under £30,000
- Assets under £2,000
- Surplus income under £75/mo
- No recent DRO (6 yrs)
Pros
- Very cheap (one fee)
- No monthly payments
- Court not involved
- Most unsecured debts included
Cons
- Strict income/asset limits
- Limited to certain debts
- Cannot be a homeowner
- Approved intermediary needed
Best for: Low debt, low income, minimal assets, renter.
Eligibility
- Want to repay in full
- Flexible payments
- Smaller debts
Pros
- Free via StepChange / National Debtline
- Flexible and revisable
- No legal restrictions
- No fixed end date
Cons
- Creditors can still pursue
- No debt write-off
- Can run for many years
- Not legally binding
Best for: Smaller or short-term debts, preference to repay in full.
Quick decision tree
Not sure where to start? Find your situation in the branches below.
Debts under £30k · assets under £2k · surplus under £75/mo
Look at the £90 fee and likely 12-month discharge.
Significant unsecured debt · no realistic plan to repay · minimal home equity
File via GOV.UK — £680 fee, 12-month discharge.
Stable income · want to protect home · mid-to-high debt
Insolvency practitioner — ~£5,000 fees, 5 years.
Small debts · want to repay in full · flexible
Contact StepChange or National Debtline — free.
Get a recommendation
Answer 5 questions. We will suggest a place to start.
What is your monthly surplus income after essential bills?
What is the value of your assets (excluding exempt items)?
Roughly how much unsecured debt do you have?
Do you own a home with equity?
How stable is your income?
Frequently asked questions
Is bankruptcy the right option for me?
Bankruptcy usually suits people with significant unsecured debt they realistically cannot repay, little home equity, and limited surplus income. It is not right for everyone — take the 5-question assessment above and speak to a free debt charity before deciding.
How long does bankruptcy last in England and Wales?
You are usually discharged from bankruptcy after 12 months. The record stays on your credit file for six years and on the Insolvency Register during the bankruptcy period. An Income Payments Agreement may extend monthly payments for up to three years if you have surplus income.
Will I lose my home if I go bankrupt?
Not necessarily. If you have little or no equity, you can often keep your home, though the official receiver may place a charge on it. If you have significant equity, the home may be sold to pay creditors. An IVA is usually better if protecting a home is a priority.
What's the difference between a DRO and bankruptcy?
A Debt Relief Order is for people with under £30,000 of debt, under £2,000 in assets and under £75/month surplus income, and costs a £90 fee. Bankruptcy suits larger debts and costs £680. Both discharge in around 12 months; a DRO is only for non-homeowners.
Can I get credit after bankruptcy?
Yes, but it is restricted. While bankrupt you cannot borrow more than £500 without telling the lender you are bankrupt. After discharge, your credit file is marked for six years, so credit will be more expensive — but it rebuilds over time with responsible borrowing.