Options for paying off your debts
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.
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
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.
Where you can get help
If you can’t pay off your debts, you can be made bankrupt.