Breathing Space vs DRO vs IVA vs Bankruptcy vs SDRP
The right formal debt solution depends on your debt amount, your income, your assets, and your tolerance for the consequences. This comparison highlights the trade-offs.
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Get free advice before choosing any formal solution: StepChange (0800 138 1111), National Debtline (0808 808 4000), or Citizens Advice. The right tool depends on full circumstances; this comparison is not a substitute for advice.
Related guides
Breathing Space (Debt Respite Scheme)
Breathing Space, formally known as the Debt Respite Scheme, gives people in problem debt a legal pause from most creditor action for 60 days. During this period, interest and charges on qualifying debts are frozen, and creditors cannot chase you, take you to court, or send bailiffs. The scheme was introduced in May 2021 and is available in England and Wales.
8 min
Debt Relief Orders
A Debt Relief Order (DRO) is a formal insolvency solution for people with relatively low levels of debt, minimal assets, and very low surplus income. When a DRO is granted, you enter a 12-month moratorium during which creditors cannot take action against you and interest is frozen. At the end of the 12 months, your qualifying debts are written off completely. A DRO can be a powerful fresh start — but it comes with conditions and restrictions.
10 min
Individual Voluntary Arrangements (IVAs)
An Individual Voluntary Arrangement (IVA) is a formal insolvency process that lets you reach a legally binding agreement with your creditors to pay back what you can afford over a fixed period — typically five years. At the end of the arrangement, any remaining debt covered by the IVA is written off.
6 min
Bankruptcy in the UK: The Basics
Bankruptcy is a formal insolvency process that can clear most of your unmanageable debts and give you a fresh financial start. In England and Wales, you apply online to the Insolvency Service, pay a £680 fee, and — if the application succeeds — are automatically discharged from most debts after 12 months.
6 min
Statutory Debt Repayment Plan (SDRP): Status and What It Will Offer
The Statutory Debt Repayment Plan (SDRP) is a planned formal debt-relief option that was provided for in the Financial Guidance and Claims Act 2018, but the regulations needed to bring it into force have repeatedly slipped. As of 2026 the SDRP is not yet operational. This guide explains what the SDRP will offer when it launches, why the timeline has slipped, and the formal options available right now.
5 min
Debt Relief Order Changes: The £90 Fee Removal and £50,000 Threshold
Debt Relief Orders are a formal insolvency solution for people with relatively low debts, limited assets, and minimal surplus income. Major changes in 2024 made DROs significantly more accessible: the £90 application fee was removed for new applications from 6 April 2024, and the debt threshold rose to £50,000 (from £30,000). This guide explains the new rules, who qualifies, and the consequences of a DRO.
9 min
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