If you owe people money (your ‘creditors’) you can make arrangements to pay your debts. Your options depend on the amount of money and assets you have.
Where you can get help
Speak to a debt adviser to get help choosing the best way to deal with your debt.
MoneyHelper has information about debt management and free debt advisory services.
Paying off your debts
You can pay your debts in instalments by setting up:
- a Debt Management Plan which is an agreement with your creditors managed by a financial company
- an Administration Order when you’ve had a county court judgment (CCJ) or a High Court judgment (HCJ) against you for debts under £5,000
- an Individual Voluntary Arrangement which is managed by an insolvency practitioner
You can also get temporary protection from your creditors through the ‘Breathing Space’ scheme, while still making repayments. You’ll need to apply through a debt advisor.
In Scotland you can arrange a Debt Payment Programme from the Debt Arrangement Scheme.
You may also have the option of reaching an informal agreement with your creditors.
If you cannot pay off your debt
You can apply for a Debt Relief Order or Bankruptcy Order if you cannot pay your debts because you do not have enough money or assets you can sell.
If you cannot pay off your debts, you can be made bankrupt.
