IVA Alternatives - Compare Debt Solutions

Choosing the Right Debt Solution

While an IVA can be an effective debt solution for many people, it's not the only option available. Understanding the alternatives helps you make the best decision for your unique financial situation.

Main Debt Solution Alternatives

1. Bankruptcy

A formal insolvency process that writes off most unsecured debts, typically within 12 months.

Best for: Those with little income, few assets, and significant debts

Compare IVA vs Bankruptcy in detail →

2. Debt Relief Order (DRO)

Often called "bankruptcy light" - a simpler, cheaper option for people with low income and minimal assets.

Best for: Those with debts under £30,000, less than £75 monthly surplus income, and assets worth less than £2,000

Compare IVA vs DRO in detail →

3. Debt Management Plan (DMP)

An informal arrangement to repay your debts in full through reduced monthly payments.

Best for: Those who want to repay debts in full but need more time and reduced payments

Compare IVA vs DMP in detail →

4. Scottish Trust Deed

The Scottish equivalent of an IVA, available only to residents of Scotland.

Best for: Scottish residents with debt over £5,000

Compare IVA vs Trust Deed in detail →

Quick Comparison Table

Feature IVA Bankruptcy DRO DMP
Minimum Debt £6,000+ No minimum Up to £30,000 No minimum
Duration 5-6 years 12 months 12 months Until paid
Debt Written Off Yes Yes Yes No
Credit Impact 6 years 6 years 6 years While active
Cost £90 (from payments) £680 upfront £90 Free/small fee
Assets Protected Generally yes No Very limited Yes
Public Record Yes (IVA Register) Yes (Gazette) Yes (IVA Register) No

View full interactive comparison tool →

How to Choose

Consider these key factors:

Your Debt Level

  • Under £6,000: DMP or debt consolidation
  • £6,000-£30,000: IVA, DMP, or DRO (if you qualify)
  • Over £30,000: IVA or bankruptcy

Your Income

  • Regular income: IVA or DMP
  • Low/irregular income: DRO or bankruptcy
  • Good surplus income: DMP

Your Assets

  • Homeowner: IVA preferred over bankruptcy
  • Minimal assets: DRO or bankruptcy
  • Valuable assets to protect: IVA

Your Goals

  • Want debt write-off: IVA, bankruptcy, or DRO
  • Want to repay in full: DMP
  • Want shortest duration: Bankruptcy or DRO (12 months)
  • Want creditor protection: IVA, bankruptcy, or DRO

Get Personalized Guidance

Use our interactive tool to find the most suitable debt solution for your situation:

Use Debt Solution Comparator →

Important Reminders

  • Each debt solution has pros and cons
  • What works for one person may not work for another
  • Always seek advice from a licensed professional
  • Consider long-term impacts on credit, employment, and assets
  • Free debt advice is available from organizations like StepChange, Citizens Advice, and National Debtline

Detailed Comparisons

Explore our in-depth comparison guides: