Are you running out of options when it comes to dealing with your debt? Is bankruptcy your only option? In many situations there are alternative routes you can consider when in large amounts of debt in the UK. Because of the implications on your credit report, bankruptcy should be considered as a last resort when dealing with debt. There are other alternatives that include:

An Informal agreement, this would involve you writing to your creditors with a proposal of the payments you can make to repay your debt to them they can either agree or reject your request. If they do accept the request it is not legal binding so they could at a later date amend the agreement or demand payment in full. These are sometimes difficult to negotiate with creditors as they are not legally binding.

An IVA, also known as an individual voluntary arrangement – this is where a formal proposition is put forward to your creditors to pay off all or part of your debt, you will need help from an insolvency practitioner as the application must be put before the court. The agreement made with your creditors is legally binding to them and may help you pay off your debt.

An Administration order, when one or more of your creditors has a court order against you the court can make an administration order. This means you make regular payments to the court to pay towards what you owe your creditors. You must owe less than £5000 and have a regular income, if your circumstances change and you cannot meet the payments you can apply for the court to change the terms of the order.

As the above examples outline, bankruptcy is not the only option when it comes to debt. Be sure to weigh up your different possibilities and make an informed choice.