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Possible Debt Solutions

Debt Management Plan - DMP

  • A DMP or "Debt Management Plan" is an informal agreement with creditors to make reduced affordable monthly payments.
  • It is based on a realistic budget that allows a debtor to pay all their priority bills and normal living expenses and pay what is left to their creditors.
  • Interest can be frozen but this is not guaranteed.
  • Though not obliged to and not guaranteed, most creditors will agree to reduce or freeze interest so that the money the debtor pays reduces their debt more quickly.
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Individual Voluntary Arrangement - IVA

  • An IVA or Individual Voluntary Arrangement is a legally binding agreement with Creditors.
  • It allows someone who is in financial difficulty to make a formal proposal to settle their debts within a reasonable and fixed period of time - normally 5 years, though this can vary depending on the debtor's situation.
  • Monthly repayments are based on what the debtor can afford to pay.
  • After the agreed payment period, any outstanding debt will be legally written off by the creditors.
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Bankruptcy - BR

  • Bankruptcy is normally seen as a last resort after all other options for repaying debt have been exhausted. If someone is declared bankrupt, they will no longer have to repay their creditors themselves and the court will protect them from any further legal action from their creditors.
  • However there are consequences which may mean that an alternative solution should be considered, depending on the debtor's situation. It is important for a debtor to understand how a Bankruptcy will effect them.
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Scottish Trust Deed - PTD

  • This solution is only available to those people living in Scotland. It is similar to the IVA that is available in England and Wales but they are not the same. It is sometimes referred to as a PTD (Protected Trust Deed).
  • A Protected Trust Deed (Scotland) is a legally binding solution. A proposal is put to the debtor's creditors by a licensed insolvency practitioner (IP). The proposal is an agreement by the debtor to make an affordable monthly payment towards their debt for typically 4 years. In return the debtor will only repay what they can afford. Any remaining debt will be cleared at the end of the solution, as long as the debtor complies with the terms and conditions of the debt solution.
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Other Options

  • Debt Consolidation is a way of raising funds to pay off debts. This could be done through remortgaging a property, taking secured loans or unsecured loans can. However this is effectively borrowing money to pay off debts so should only be done under the guidance of an authorised debt advisor.
  • Debt Relief Order (DRO) - For those who may be considering Bankruptcy but are unsure that they can afford the fees involved, a DRO can deal with smaller debts and where a debtor has lower disposable income amount after normal living expenses.
  • Debt Arrangement Scheme - Available only to residents in Scotland, this government run scheme can freeze interest and charges and manage debts in an affordable way.
  • DIY - Debtors may also wish to manage an informal payment plan themselves, making reduced offers and negotiating with creditors instead of using a company to do it for them.


For information on how to apply for any of these solutions, please contact us on 0800 567 0056.

Important information

This website provides information only. Vincent Bond & Co does not provide debt advice. If you wish to apply for any of the debt solutions outlined in this website Vincent Bond will with your permission pass your details to a licenced debt solution provider. You will then be called by an advisor who will discuss your options in more detail. During this telephone call and subsequent communication, you will be dealing with a debt solutions partner and not Vincent Bond & Co Ltd. Fees may be charged by the debt solution provider if you enter a debt solution with them. Vincent Bond will not charge you a fee, but may receive a referral fee from the debt solution provider if you agree to use their services.

We take reasonable care to ensure that the information on this website accurate. However, the user of this website should not rely on the information or take its accuracy for granted. Vincent Bond & Co does not accept liability or responsibility for and gives no warranty as to the accuracy of the information on this website. The provision of the information on this website does not constitute debt advice or recommendation and Vincent Bond will not accept any liability for any action taken by a user relying on the information provided in the website. Use of the information in this website is at the users own risk. Your statutory rights are not effected by this disclaimer.

The Insolvency Service has issued a guide to dealing with creditors for those struggling with debt: In debt - dealing with your creditors.

To find out more about managing your money and getting free debt advice, visit Money Advice Service, an independent service set up to help people manage their money.