Can I write off my Debts?

We are often asked if there was any way to get debts written off. There are several debt solutions that allow people to write off a range of debts. Also, creditors may agree to write off part of a debt, or in some cases all of it, but this depends on your personal circumstances.

You may be able to apply for a debt solution that will write off some or all your debts if it’s unlikely you’ll be able to pay what you owe in a reasonable amount of time.

It’s important to get free and impartial advice to help you with your debts before going ahead with any debt solution. This will help you to understand what options are best suited to your circumstances and how your situation will be affected.

Which Debt Solutions Write Off Debts?

Tip:

There is a range of insolvency debt solutions that will see some or all of your debts written off. Read our guides to learn about the different benefits, risks, and fees associated with each solution.

Insolvency solutions to write off debts in England, Wales, and Northern Ireland:

​Bankruptcy: A form of insolvency that writes off unsecured debts if you can't afford to repay them. Any assets you have, such as a house or car, may be sold to pay off your debts

​Debt Relief Order (DRO): A way to have your debts written off if you have a relatively low level of debt and have few assets

​Individual voluntary arrangement (IVA): A formal agreement where you to make affordable payments to your debts, usually over five or six years. You can also make a one-off payment, so the IVA lasts for a much shorter time

Insolvency solutions to write off debts in Scotland:

​Sequestration, or Scottish bankruptcy: A form of insolvency that writes off unsecured debts if you can't afford to repay them. Any assets you have, such as a house or car, may be sold to pay off your debts

​Protected trust deed: A legally-binding agreement where you make reduced payments over four years, then your unsecured debts are written off

​Minimal assets process (MAP) bankruptcy: Another type of bankruptcy, aimed at people with a low income and not many assets bankruptcy

These insolvency measures have many advantages over trying to make agreements directly with your creditors to write off debts. Insolvency is legally binding and creditors included in the solution usually can’t do anything to get their money back.

But there are drawbacks as well.

Some insolvency solutions require you to pay a fee first, and there’s a risk of having to sell your house or car. It is important to note that all insolvency solutions will have a negative effect on your credit file.