Can the government write off my debt?
Insolvency is a government-backed way to write off some of your debt. When you write off debt, you get rid of a debt without having to pay it off in full.
But many of the solutions involve making payments for set amount of time before the rest of the debt is written off.
Some of the insolvency solutions include:
- Bankruptcy (or sequestration in Scotland)
- DRO (or MAP bankruptcy in Scotland)
- IVA
- Protected trust deed (PTD) in Scotland
Insolvency is a legal process that does have risks to be aware of. Find out more about writing off debt with a debt solution.
Is there a government scheme to help with debt?
Breathing Space is a government scheme that gives you time to get debt advice and start a solution. It is sometimes called the Debt Respite Scheme and is available in England and Wales.
The scheme protects you while you seek debt advice and work towards getting a debt solution.
It is not a payment holiday and does not write off debt. The scheme is designed to help you take a break from creditor contact while you start to sort out a debt solution. Ideally from a trusted organisation or charity, like us.
Find out more about how Breathing Space works.
If you live in Scotland you may be able to apply for a debt moratorium period while you set up certain debt solutions. It is like Breathing Space but has different risks and benefits.
Debt consolidation for poor credit
If you have a poor credit score or a rocky credit history, you will likely pay higher interest rates and may not be offered the best debt consolidation deals.
Secured consolidation loans are easier to get approved for. But they come with much higher risks if you are not able to pay them back.
Read our guide to consolidation loans with poor credit.
We are here to help
To see if debt consolidation or debt management is right for you, it is best to get free and impartial debt advice.
Our advice:
- Is free and impartial
- Is available 24/7 online
- Has no impact on your credit score
Start, stop and begin again at a time that suits you.