Dealing with your non-priority debts


You may want to think about bankruptcy even if you have some money left to pay your creditors.



IVA through National Debtline

National Debtline may be able to refer you to an insolvency practitioner from a list of providers that have agreed to follow special guidelines (called the IVA protocol). Contact us for advice.

Individual voluntary arrangements

There is an alternative to bankruptcy called an individual voluntary arrangement (IVA). This is a formal arrangement to pay an agreed amount off your debts over a shorter period, such as five years. The rest of your debts are written off.

The IVA will be set up by an insolvency practitioner whose fees can be very high. Creditors can stop the IVA going ahead by voting against it. It is usually only an option if you have a reasonable amount of money available every month to pay your creditors or you have a lump sum or assets that you can include. In rare cases, you may risk losing your home. Contact us for advice.

Administration orders

See our fact sheet:

Administration orders.

If you have a county-court judgment, you might be able to apply for an administration order. This is a way of putting all your debts together and making one monthly payment into the court. The court then shares it among your creditors. The total of the debts must be no more than £5,000. Your creditors can't take any further action against you if you have an administration order, as long as you keep up the monthly payments.

You may need help in filling in the application form as local courts deal with administration orders differently. If you want to apply for an administration order, contact us for advice.