Government Debt Solutions

There are a number of debt solution options you can choose from to help begin your journey back to the black. Not all are equal in value and not all are government-approved solutions so we have put together a list of the main possible solutions to handling excessive and unmanageable debt with their positives and negatives as well as whether they can be classed as a government debt solution.

DRO – Debt Relief Order

For low-income earners with minimal assets. This is a new form of insolvency and has a lot of stipulations that must be met before you can apply for it. These are government-backed and must be performed by an insolvency expert but be warned that if you put one foot out of line, the DRO will not protect you from your creditors.

DMP – Debt Management Plan

This is a formal agreement that you can make with a creditor on how you intend to repay the overdue debts to them. An agency or credit counselling service can also negotiate this on your behalf but this form of debt solution is not backed by the government.

IVA – Individual Voluntary Agreement

Approved by the government and gives you full protection from creditors coming after you or your assets when established correctly. Usually has a longer time frame to repay the debts and forces you to get your budgeting in order but is a great option for the average citizen.


The most well-known solution. This is only allowed by going through the government’s process but offers no protection of your assets, your name is registered on the insolvency register, however, after 12months you will usually be removed or discharged from your bankruptcy and allowed to move forward with your life. Whilst an absolute last resort can be a way of having a clean start if you don’t mind losing your home or assets to repay your debts.

Administration Orders

Another government-backed solution that really gets the government involved as occurs if you have a County or High Court judgement against you. The debt must be less than £5000 and you will have one month to pay for it. This money will be split amongst the creditors.

Creditors are unable to take any further action against you without permission of the court, however, this can come at a cost of up to 10% of the payment each time you make it. On a debt of £5k, this would mean £500 will potentially be just for fees to cover the administration order.

This will be recorded on a registrar but is usually removed after 6 years.

YourIVA offers several solutions to help you with excessive debt.

This page on the Government site offers further reading.


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Damaz Building, Office 1, Sharp Street, Manchester, M4 4BZ is a trading style of Regional Legal Limited regulated by the FCA in respect of regulated Claims Management and Debt Advisory activities. FCA number: 830819

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