Selling assets to clear debt

Key facts

How much debt must I owe? There is no minimum or maximum level of debt. It’s more likely to be a suitable option if you have debts that you can’t afford to clear through your regular income.

What type of debt? You can use this option to clear any type of debt.

How long will it last? There is no time limit. It may take you longer to sell some assets than others. It depends on the asset and the method you use to sell it.

How it works

See our fact sheet:

Selling assets to clear debt

You consider all available options and decide that you want to sell an asset to help clear your debt. Contact us for advice before making this decision.

You choose which assets you want to sell and how you want to do this. You explore all the costs involved in the method of sale you choose.

There are many ways of selling assets yourself, such as online auctions and advertising in local newspapers. There are also legally binding ways of using assets to pay debts, such as entering into an individual voluntary arrangement.

You consider how you want to use the money you raise. If you cannot pay all your debts off, you could consider making smaller offers to settle each debt and ask the creditors to write off any remaining amounts. It is important to take into account how you can treat creditors fairly. This is because if you consider some other options to deal with your debt in the future, how you have previously treated creditors can be taken into account when deciding whether further restrictions should be applied to you.


  • It can help to relieve pressure from creditors who may be chasing you for payment or threatening legal action.
  • It can help to stop priority creditors taking legal action to take away an essential service or an essential item.
  • You may be able to pay off those creditors who charge interest at a higher rate so that your other debts are easier to manage.


  • You would have less financial security for the future. For example, depending on which assets you sell, it may mean you have less money and security for your future and retirement.
  • You may leave less inheritance to other people when you die.
  • If emergencies occur in the future, you may be less likely to have the funds to deal with them.
  • In some situations, you could still be treated as having money you have used to clear debts when the Department for Work and Pensions or your council look at your benefits.
  • You may need to get professional advice to make sure that selling your assets does not affect your tax position.