How might a DMP help me deal with my debts?
A DMP works like this:
- You pay your debts at a rate you can afford
- You pay over a good amount of time (no more than 10 years, in most cases)
- You make a single monthly payment
- We share this payment between the people you owe
The people you owe do not have to agree. But we find that most will accept DMP payments.
They do not have to stop contacting you. But many will stop interest and charges for a time while you deal with your debt.
Find out more about getting a debt management plan.
How might bankruptcy help me deal with my debts?
Bankruptcy is a form of insolvency. It allows you to write off a range of unsecured debts, such as:
- Credit cards
- Utility arrears
It may be an option if you cannot pay your debts in a good amount of time.
Going bankrupt is a big step. Get debt advice to understand how it will impact your:
- Credit rating
- Ability to get future credit
Find out more about how bankruptcy can affect you.
You have to pay a fee to go bankrupt. Costs vary depending on where you live in the UK.
The official receiver will oversee your bankruptcy. They:
- Confirm which debts can and cannot be written off
- Confirm if any assets may be used to repay your debts
Bankruptcy lasts for 12 months. This can be extended if extra restrictions are imposed.
Find out more about how bankruptcy works.
How do I find out if a DMP or bankruptcy is right for me?
Get free debt advice before choosing any debt solution.
To find which debt solutions are best for you, we ask:
- Who you owe money to
- How much you owe
- What types of debt you have
- If you have assets or a job that could be affected
- How much you can afford to pay
- If your situation may improve soon
- If you would wants debts to be written off, rather than paying them back
In your debt advice session, you also add details into your monthly budget about your:
This shows you if there is any money for making debt payments after your household spending.
Any spare money could be used to make DMP payments. There may be other options for you too.
We may recommend an insolvency solution if your budget shows you cannot pay your debts in a good amount of time.
How do I apply for a DMP or bankruptcy?
We give you a ‘personal action plan’ at the end of your debt advice session. This includes guides to setting up any debt solutions we recommend.
We will support you for as long as you need.
We can set up and manage your DMP if this is the right option for you. Frequently asked questions about debt management plans.
You can begin applying for bankruptcy if that is what we recommend too.
- England and Wales: Fill in your application online without the need for a court visit
- Northern Ireland: Apply online and attend a court hearing
Read our guide to going bankrupt.