Dealing with your non-priority debts

​What if I have no money left to pay my creditors?

No payments or token payments

After paying your outgoings and making arrangements to pay your priority debts, there may be nothing left to pay other creditors. If you have nothing left, say so. Show your creditors by sending them your budget summary and a letter to back this up. Ask your creditors to hold action until your circumstances improve. This is called asking for a 'moratorium'. Or offer a token payment of £1 a month to each creditor instead.

Token payment or no offer of payment sample letter 

See our fact sheet:

Debt relief orders (DROs).

Debt relief order

You may be able to apply for a debt relief order (DRO). DROs can be an alternative to bankruptcy and are cheaper to apply for.

You may qualify if:

  • you owe £20,000 or less in total;
  • you can't afford to pay more than £50 a month to your creditors; and
  • you have total assets worth £1,000 or less and a car worth less than £1,000.

If you get a DRO, your debts are written off after 12 months. You will need help from an approved advice agency such as a money advice centre, citizens advice bureau or National Debtline, to fill in an online application. You will have to pay a fee to the Insolvency Service to make the application. Contact us for advice.