What are my options if I'm in debt?

For people who are in debt.

Applies to: England, Wales Last checked against official sources: 6 October 2026

Your options depend on how much you owe and what you have. Speak to a free debt adviser first.

Breathing Space: in England and Wales, a debt adviser can apply for up to 60 days' protection from your creditors while you make a plan.
To pay in instalments, you could use a Debt Management Plan, an Administration Order (for court judgment debts under £5,000) or an Individual Voluntary Arrangement.
If you can't pay, a Debt Relief Order or bankruptcy may be options.
A Debt Relief Order is free to apply for, and is for debts under £50,000.

Different in Scotland, Wales or Northern Ireland

Rules may be different in:

Scotland: Check mygov.scot for Scotland
Northern Ireland: Check nidirect for Northern Ireland

Key facts

Talk to a free adviser
Breathing Space: up to 60 days' protection
Instalment options
DRO is free, debts under £50,000

Your main options at a glance

Option	Best for	Cost	Legally binding?
Breathing Space	Time to get advice, up to 60 days	Free	Yes, pauses action
Debt Management Plan	Paying all unsecured debts in one payment	Some firms charge fees	No
Administration Order	Debts under £5,000 with a court judgment	Court fee on each payment, up to 10% of the debt	Yes
Individual Voluntary Arrangement	Paying back part of larger debts over time	Set-up and handling fees	Yes
Debt Relief Order	Low income, few assets, debts under £50,000	Free	Yes
Bankruptcy	Debts you cannot pay, when other options do not fit	£680	Yes

Options to pay your debts over time

Debt Management Plan (DMP). You make one payment, which is shared between your creditors. It only covers unsecured debts, such as credit cards and loans. Creditors do not have to agree. Unless your agreement says otherwise, they can still ask for the full debt later.

Administration Order. This is for you if you owe less than £5,000 (including interest and charges), owe at least 2 creditors, and have a county court or High Court judgment you cannot pay in full. Apply to your local court on form N92. Creditors named on the order cannot take action without the court's permission.

Individual Voluntary Arrangement (IVA). An insolvency practitioner sets this up. It starts if creditors owed 75% of your debts agree, and then it binds all of them. It stops creditors taking action. It goes on the Individual Insolvency Register and is removed 3 months after it ends.

Options if you cannot pay

Debt Relief Order (DRO). A DRO lasts 12 months. After that, you do not need to pay the debts in it. You may qualify if you:

owe less than £50,000
have less than £75 a month spare income
have less than £2,000 of assets
do not own a vehicle worth £4,000 or more

A DRO is free, but you must apply through an approved debt adviser.

Bankruptcy. You apply online and it costs £680. You hear from the adjudicator within 28 days. Bankruptcy limits what you can do more than the other options, so check them first.

Get free advice first

Speak to a free debt adviser before you choose. They can tell you which option suits you and apply for Breathing Space or a DRO for you. MoneyHelper lists free debt advice services, and Citizens Advice can also help.

You can also ask creditors for an informal agreement, such as paying less each month.

If you live in Scotland or Northern Ireland

Scotland: you can arrange a Debt Payment Programme under the Debt Arrangement Scheme. Breathing Space and the bankruptcy process above are for England and Wales only.
Northern Ireland: bankruptcy and some other options work differently, so get advice locally.

Related guides

Where this comes from

Options for dealing with your debts (GOV.UK)
Debt Management Plans (GOV.UK)
Administration Orders (GOV.UK)
Individual Voluntary Arrangements (GOV.UK)
Debt Relief Orders (GOV.UK)
Applying for bankruptcy (GOV.UK)

Get it done

This takes you to the official service, which is free to use.

Find free debt advice

Common questions

What does Breathing Space protect me from?

Creditors cannot contact you about the included debts, add interest or charges, or take enforcement action. If you are getting mental health crisis treatment, it lasts for the treatment plus 30 days.

Is a Debt Management Plan legally binding?

No, unless your agreement says otherwise, creditors can still ask for the full debt later or take action to recover it. It can only cover unsecured debts, and some companies charge fees.

How much does it cost to go bankrupt?

Applying for bankruptcy costs £680 and you can only apply online. You usually hear from the adjudicator within 28 days.

Official sources

1.Options for dealing with your debtswww.gov.uk/options-for-dealing-with-your-debts
2.Breathing Spacewww.gov.uk/options-for-dealing-with-your-debts/breathing-space
3.Debt Relief Orderswww.gov.uk/options-for-dealing-with-your-debts/debt-relief-orders
4.Debt Management Planswww.gov.uk/options-for-dealing-with-your-debts/debt-management-plans
5.Applying for bankruptcywww.gov.uk/bankruptcy

Checked against GOV.UK on 6 October 2026

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