If you owe people money (your ‘creditors’) you can make arrangements to pay your debts. Your options depend on the amount of money and assets you have.
You can pay your debts in instalments by setting up:
- a Debt Management Plan (external link) which is an agreement with your creditors managed by a financial company
- an Administration Order (external link)when you’ve had a county court judgment (CCJ) or a High Court judgment (HCJ) against you for debts under £5,000
- an Individual Voluntary Arrangement (external link)which is managed by an insolvency practitioner
You can apply for a Debt Relief Order (external link) or Bankruptcy Order (external link) if you cannot pay your debts because you do not have enough money or assets you can sell.
You may also have the option of reaching an informal agreement with your creditors.
Where you can get help
The Money Advice Service has information about debt management (external link) and offers free debt advice (external link).
If you cannot pay off your debts, you can be made bankrupt (external link).