Personal Insolvency in England & Wales | Options Explained

We're a directory, not a debt adviser. This page explains options in plain English. It is not financial or legal advice. If you want free, regulated debt advice, contact StepChange, National Debtline or Citizens Advice. For a formal insolvency solution, speak to an authorised insolvency practitioner or a debt-law solicitor.

This page covers England and Wales as of August 2026. Scotland and Northern Ireland use different systems.

Personal insolvency in England & Wales — overview

The government debt-options overview describes formal and informal routes. A debt adviser or insolvency practitioner can explain the route that is available in a particular case.

Formal solutions available

Individual Voluntary Arrangement (IVA)

An IVA is arranged through an insolvency practitioner and starts when creditors holding 75% by value agree.

Bankruptcy

Bankruptcy is applied for online. It costs £680 and instalments can be paid before submission. A creditor can petition where a debt is £5,000 or more.

Debt Relief Order (DRO)

A DRO needs an approved adviser. The criteria include debts under £50,000, assets under £2,000 and spare income under £75 a month. It lasts 12 months and has no application fee.

The Breathing Space (Debt Respite) scheme

Breathing Space is applied for through a debt adviser. The standard protection can last up to 60 days; mental-health crisis protection has separate rules.

Informal options

Debt Management Plan

A DMP is informal. Creditors do not have to agree to it under GOV.UK guidance.

Informal arrangements with creditors

A person can also seek a direct repayment arrangement. Its terms depend on creditor agreement and it is not a formal insolvency procedure.

Who regulates insolvency in England & Wales

The Insolvency Service administers key processes and oversees regulation. IPs are authorised by recognised professional bodies.

Where insolvency is recorded — the Individual Insolvency Register

IVAs, bankruptcies and DROs are listed on the Individual Insolvency Register.

Free debt advice sources in England & Wales

StepChange, National Debtline, Citizens Advice and MoneyHelper offer free routes to help.

How England & Wales rules differ from Scotland and Northern Ireland

Scotland uses sequestration and Northern Ireland has its own procedures. England and Wales figures must not be applied in either nation.

Where to get help

See personal insolvency and can’t pay my debts for further reading.

Talk to a regulated professional. The right route out of debt depends on your specific circumstances — income, assets, debts, dependents and where you live in the UK. A regulated insolvency practitioner or a debt-advice charity can review your position and set out the options that apply to you. Find a regulated practitioner near you or contact a free debt-advice charity listed above.

Frequently asked questions

What debt solutions are available in England and Wales?

The government overview covers IVA, bankruptcy, DRO, DMP and other arrangements.

How much does bankruptcy cost in England and Wales?

It costs £680 as of August 2026.

What is Breathing Space and how long does it last?

It offers up to 60 days of standard protection.

What's the maximum debt for a DRO?

The limit is less than £50,000, alongside other criteria.

Does English bankruptcy law apply in Scotland?

No. Scotland has its own sequestration system.

Who regulates insolvency in England and Wales?

The Insolvency Service has a central role.

Where is insolvency recorded?

On the Individual Insolvency Register.

Where can I get free debt advice?

MoneyHelper provides a free route to guidance.

This page is published by The Insolvency Directory for general information about UK personal insolvency and debt options. It is not financial, legal, tax or debt advice, and reading it does not create a client relationship. The information is a summary — the rules change and depend on your circumstances. For advice specific to you, contact a regulated debt-advice charity or an authorised insolvency practitioner. Last reviewed 2026-08-10.