Alternatives to bankruptcy

There are various alternatives to bankruptcy, including:

• Informal arrangement - writing to all your creditors to see if you can reach a compromise. 
• Individual Voluntary Arrangement (IVA) - a legally binding way to reduce the amount that you pay back, stop any further interest charges and reduce your monthly repayments. You would need to contact an insolvency practitioner who will advise you and consider whether your proposal is viable. Read more on IVAs.
• Administration order - if one or more of your creditors has obtained a judgment against you, the Enforcement of Judgements Office (EJO) may make an administration order. Under this order you will make regular payments to the EJO towards the total sum you owe your creditors. Your total debts must not be more than £5,000 and you will need enough regular income to make weekly or monthly repayments. Read more on administration orders.
• Debt Relief Order (DRO) - if you are unable to pay your debts, owe less than £50,000, have assets worth less than £2,000 and have less than £75 per month disposable income, after paying normal living expenses, you may be able to apply for a DRO. Read more about DROs.