Personal insolvency procedures
Debt worries can be overwhelming and frightening and can leave those who are concerned about what they owe feeling helpless. At R3, we want to help people manage and overcome these feelings and help them make positive decisions about their future, so we have produced a free resource – “Dealing with money worries – a guide to your options” – for people in England and Wales.
Download dealing with money worries – A Guide to your Options (July 2024)
Bankruptcy
Bankruptcy is a statutory insolvency procedure designed to help an insolvent individual repay as much of their debt as possible. Bankruptcies are overseen by a licensed insolvency practitioner or Official Receiver acting as a ‘trustee’. Bankruptcies are an option in England & Wales and Northern Ireland. In Scotland, the equivalent process is known as Sequestration.
Individual Voluntary Arrangements
An Individual Voluntary Arrangement (IVA) is a statutory insolvency procedure designed to help people resolve serious indebtedness. IVAs are a binding agreement between an individual and their creditors (the people or organisations to whom the individual owes money), typically based on the individual agreeing to repay a portion of their debts over a set period of time. IVAs are available in England & Wales.
Debt Relief Orders
A Debt Relief Order (DRO) is a statutory solution designed for individuals with low value debts, low incomes and few assets as an alternative to bankruptcy where their financial circumstances have little prospect of improving. A DRO is available in England & Wales.