Debt Solutions

Credit Card DebtBefore entering any debt solution it’s extremely important to understand what it is and how it could impact you financially.

Some debt solutions are legally binding once they begin which means the consequences of entering them wrongly can be catastrophic.

We have listed the main debt solutions for the UK and Scotland below along with an explanation of what they are and how they work. Whether someone rents out a property, uses a property maintenance Glasgow company, it may affect which solution they are most suitable for.

UK Debt Solutions (Except Scotland)

Some debt solutions are only available to people living in England, Wales and Northern Ireland, while Scotland has separate legislation.

Debt Management Plan

Debt SolutionsA debt management plan is also suitable to people in Scotland as well however a debt arrangement scheme is probably more suitable.

In a debt management plan debtors will repay the full amount owed but over a reasonable period of time and with more affordable payments.


An IVA (individual voluntary arrangement) is an insolvency debt solution which means it’s only suitable for people who are unable to repay the full debt.

In an IVA a debtor will repay a percentage of their debt over 5 years (6 if they have an asset) and any remaining debt is written off.

If someone enters an IVA wrongly they could end up paying back the full debt plus fees so it’s important to get good debt advice.


When someone cannot repay their debt in full or they are unable to enter an IVA bankruptcy is used as a last resort.

There are a few ways to enter bankruptcy depending on a debtors circumstances and someone may pay once they enter it.

Entering bankruptcy wrongly could mean someone losses an asset such as their property  or vehicle.

Scottish Debt Solutions

The solutions below are only suitable to people living in Scotland although they may be similar to solutions in the rest of the UK.

Debt Arrangement Scheme

While someone can enter a debt management plan in Scotland they would benefited greater from the debt arrangement scheme.

A debt management plan is informal arrangement which doesn’t guarantee to freeze interest and charge however a DAS is formal and does freeze costs.

Protected Trust Deed

Similar to an IVA because debtors will repay a percentage of their debt but only for 3 years and the rest is written off at the end.

Debtors must repay at least 10% of their overall debt to creditors and any assets must be realised.


Often called “Scottish bankruptcy”, sequestration is the debt solution which people use when all other options have been exhausted.

There is a range of ways to enter sequestration and in some cases debtors will have to repay some of their debt.