| Key feature | IVA | Bankruptcy | DMP | DRO |
|---|---|---|---|---|
| Is it legally binding? | Yes | Yes | No | Yes |
| How long does it last? |
Usually five yearsSometimes six if you own a home. |
Usually 12 monthsYou may be required to make payments for up to three years if you have surplus income. |
No set end dateIt lasts until your debts are repaid. |
12 months |
| Do I make monthly payments? |
Yesbased on what you can afford. |
Only if you have money left over. |
Yesbased on what you can afford. |
No |
| What happens to the debt? | Any unpaid debt included in the IVA is written off at the end. | Debts included are written off when it ends. | You repay everything you owe, unless creditors agree to freeze or reduce interest and charges. | Debts included are written off after 12 months. |
| Will I lose my home? | Your home is usually protected. | Your home may be sold if it has enough value. | Your home isn’t affected | You won’t be eligible for a DRO if you own a property. |
| Can I keep my belongings? |
YesYou usually keep everyday items. |
Some valuable items may be sold. | Yes |
Yesbut there are strict limits on the value of assets you can own. |
| Does it affect my credit file? | Will stay on your credit file for six years from the date it begins. | Will stay on your credit file for six years from the date it begins. After this, it may take up to three months for it to be removed. | Any defaults will stay on your credit file for six years. | Will stay on your credit file for six years from the date it begins. |
| Will creditors still contact me? |
No(apart from annual statements, they’re legally obligated to send). |
No | They may still contact you. | No |
| Are there job restrictions? | Some jobs may be affected. | More job restrictions apply. | Rarely affects your job. | Some roles may be affected. |
| Can I be self-employed? |
YesYou can usually continue trading. |
It’s possible, but restrictions apply. | Yes | It’s possible, but restrictions apply. |
| Is it public? |
YesIt appears on the Insolvency Register. |
YesIt appears on the Insolvency Register. |
No |
YesIt appears on the Insolvency Register. |
| Are there fees involved? | Fees are included in your monthly payment | One-off fee of £680 in England and Wales. Fees differ in Northern Ireland | There may be fees for DMPs not with PayPlan. | No |
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