- Debt Solution
Pros & Cons of Each Solution
Every debt solution trades something off. Here’s a side-by-side look, so you can see what fits before you decide.
Debt Guide
Individual Involuntary Arrangement
| Pros | Cons |
|---|---|
| One Affordable Monthly Payment, Fixed For ~5 Years | Early Payments Mostly Cover Fees, Not Debt |
| Remaining Unsecured Debt Written Off At The End | Homeowners May Pay Longer Than 5 Years |
| Protects Your Home & Car (If Payments Kept Up) | Listed On The Public Insolvency Register |
| Interest Frozen; Creditor Action Stops | Credit File Affected For 6 Years |
Quick Comparison
Solution
Debt written off?
Fees
Credit file impact
IVA
- Yes, if completed
Built into payments
6 years
DMP
- No
Provider fee (optional)
6 years (via defaults)
DRO
- Yes, after 12 months
None
6 years
Bankruptcy
- Yes, qualifying debts
£680 total
6 years
Quick Comparison
| Solution | Debt written off? | Fees | Credit file impact |
|---|---|---|---|
| IVA |
✓
Yes, if completed
|
Built into payments | 6 years |
| DMP |
✓
No
|
Provider fee (optional) | 6 years (via defaults) |
| DRO |
✓
Yes, after 12 months
|
None | 6 years |
| Bankruptcy |
✓
Yes, qualifying debts
|
£680 total | 6 years |