Debt write off. How do I get my debts written off?

Yes, as it can give you a fresh start. But is not always easy to do and, depending on how you do this, there could be other impacts on you.

Writing off debt through an insolvency solution

This means the debt is written off by law. It is a big decision and can affect you in different ways.

Read more about insolvency solutions.

Writing off debt through a settlement

It is not always easy to ‘negotiate’ a deal with the people you owe. We have a dedicated team who specialise in this.

Read more about our free settlements service.

Writing off debt by telling creditors you cannot pay

The people you owe are only going to agree to this if they are sure that you will not be able to repay what you owe. You should not rely on this happening.

Insolvency is a way to legally write off debts.

How this works

• The solutions are legally binding
• The people you owe usually cannot take action to get their money back.

There are risks though.

• You may have to pay a fee or monthly payments
• You may be asked to sell your house or car
• It will be recorded on the Insolvency Register and on your credit file

You should never go ahead with an insolvency solution before:

1. Getting debt advice that considers everything you are dealing with
2. Making sure you are clear about the risks and benefits of the solution you are going ahead with

About insolvency solutions to legally write off debt

Read our guides to learn about the different benefits, risks and fees for each solution.

England, Wales and Northern Ireland

Bankruptcy:

• Writes off unsecured debts if you cannot repay them
• Any assets like a house or car may be sold

Debt relief order (DRO):

• Writes off debts if you have a relatively low level of debt
• Must also have few assets

Individual voluntary arrangement (IVA):

• A formal agreement
• You to make affordable payments to your debts over five or six years
• You can also make a one-off payment to shorten the IVA

Scotland

Sequestration, or Scottish bankruptcy:

• Writes off unsecured debts if you cannot afford to repay them
• Any assets like a house or car may be sold

Protected trust deed (PTD):

• A legally-binding agreement
• You make lower payments over four years
• Some debts are written off at the end

Minimal assets process (MAP) bankruptcy:

• Another type of bankruptcy
• For people with a low income
• Must not have many assets

How much debt can be written depends on:

• How much you can afford to pay
• Whether you are dealing with something else that makes it harder to pay what you owe

Some people cannot afford to pay anything towards their debts. This may be because:

• They cannot work for a long time
• They have a long-term illness

The people you owe may be able to consider writing off your debt if:

• They understand you will not be able to pay
• They see you have no assets to sell
• You can show it is not worthwhile or fair for them to keep collecting the debt

This usually only happens most serious cases. They will ask for proof of your illness or injury.

Instead of writing off the debt, the people you owe may offer other ways to help you. Such as a payment holiday.

They may also be able to help you if you are dealing with a mental health issue. You can help them to support you by:

1. Telling them about mental health condition which is making it hard to pay what you owe
2. Getting a debt and mental health evidence form (DMHEF) signed off by a health or social worker
3. Sharing this signed form with your creditor

Find out more about debt and mental health.

Please tell us about your situation when you get debt advice, if you are happy to. We can help support you.

You may still be chased for the money you owe

1. The creditor agrees to write off the debt, in full or in part. Always keep a record of the agreement to write off the debt. Make sure you get this in writing
2. It can take a while for accounts to be updated. And if the debt has been sold on, it could take longer. There is no need to worry if you get calls or visits from debt collectors about the debt. Show them the proof it has been written off.
3. The debt is marked in your credit file as paid
4. Any missed or lower payments and defaults from before the debt was written off are listed on your credit file
5. Your credit file is marked with a 'partial payment' if you settle part of debt

Any records on your credit file will stay on there for six years.