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Debt Solutions

Welcome to Dissolve Debt! We offer a wide range of products and services to assist you with your financial needs. If you are unsure which option is best for you, please feel free to use our friendly Debt Solution Finder or give us a call on 0161 926 7670 to speak with one of our knowledgeable advisors. We understand that everyone’s situation is different, which is why we recommend contacting us to discuss your options. We are always here to help!

Debt Management Plan (DMP)

This informal arrangement allows you to pay back your debts based on a rate that is tailored to you and your financial circumstances.

A Debt Management Plan is determined by taking into account all of your income and outgoings. Debt management is particularly useful for non-priority debts, such as credit cards, loans, store cards, overdrafts and more. However, it’s important to note that priority bills such as current council tax, court fines and mortgage arrears are not eligible for this service.

Advantages of a debt management plan:

  1. In the majority of cases, creditors will stop applying interest and charges, so the money you pay will come straight off the balance.
  2. We will manage the contact with your creditors and provide them everything they need. So, as long as you keep in touch with us, your creditors shouldn’t need to contact you.
  3. You will just make one monthly payment to us, instead of paying all of your creditors individually.
  4. If your circumstances change, we will renegotiate the payments with your creditors.

Disadvantages of a debt management plan:

  1. Your creditors don’t have to agree to the repayment, or to freeze interest and charges.
  2. A debt management plan doesn’t protect you from further recovery or legal action from your creditors.
  3. Your credit rating will be impacted because you’ll be paying reduced amounts to each creditor. If you’ve been missing payments to your debts, it is likely that your credit report will already have been impacted.
  4. While such arrangements reduce your monthly repayments to make them affordable, it usually means you will pay more in total over a much longer period.
  5. Delayed or missed payments will cause you to go further into arrears with your creditors and may lead to your debts increasing and creditors taking further action to recover the sums owed to them.

How much will a Debt Management Plan (DMP) cost?

For more information on our fees and charges, click the link below:

Individual Voluntary Arrangement (IVA)

If you’re currently struggling with debt over £6000 and wondering what your options are, an Individual Voluntary Arrangement (IVA) may be worth exploring.

Essentially, an IVA is a legally binding payment plan designed to provide relief to those struggling to keep up with debt repayments.

With the guidance of a qualified Insolvency Practitioner, you’ll work out an affordable payment plan that will allow you to make a single monthly payment to cover multiple debts. This payment plan typically lasts for around five years (60 months), although homeowners may be able to extend it for up to 12 additional months. Keep in mind, however, that an IVA will need to be approved by at least 75% of your creditors in order to move forward.

While Dissolve Debt isn’t directly involved in administering IVA’s, we can connect you with one of our trusted partners who will work with you every step of the way. As a provider of FCA regulated debt advice, we’re committed to helping you find the right solution for your unique financial situation.

Advantages of an Individual Voluntary Arrangement (IVA)

  • One affordable, monthly repayment which makes your finances much easier to manage.
  • A set time (usually 5 or 6 years) gives you a countdown to becoming debt free.
  • Once approved, unsecured creditors can no longer proceed with legal action against you.
  • Assets such as your home and vehicle will be protected and not put at risk of being sold.
  • Unsecured creditors are no longer able to contact you to pursue your debts and interest and charges are frozen.

Disadvantages of an Individual Voluntary Arrangement

  • There are fees payable for setting up and managing your IVA, however these are taken from your monthly repayments and are not in addition to the payments made to your creditors.
  • An IVA will be recorded on your credit file and have a negative impact for a period of 6 years.
  • Your personal details will be recorded on the Insolvency Register which is a public record.
  • (Homeowner only) If you are a homeowner, you may be required to release equity from your home to help repay your debts. If you can’t release equity, the IVA may be extended by 12-months instead.
  • If you receive a windfall such as inheritance, you will be required to pay a proportion of this into the IVA.
  • At least 75% of voting creditors (by debt value) need to approve your proposal for the IVA to be put in place.

Debt Relief Order (DRO)

A debt relief order can cancel all your debts if your finances don’t improve in a year. You won’t have to pay back what you owe and interest and fees will stop. Just pay a one-time application fee and an approved organisation will guide you through the process. Unfortunately, if you live in Scotland, you can’t apply for a debt relief order, but a similar option is available called the Minimal Assets Process (MAP) bankruptcy.

How it works

You should first seek debt advice, and if a DRO is considered suitable, you will be referred to an approved intermediary*. They will check that your situation fulfils the criteria and will help you complete the online form, and submit it for you to a government official called the official receiver. The official receiver then makes the order, if appropriate.

*An approved intermediary is someone who has been approved by a competent authority chosen by the government.

To get a DRO:

  • you owe £30,000 or less;
  • you have less than £75 to spend each month, after paying tax, national insurance and normal household expenses;
  • you’ve lived or worked in England or Wales in the last 3 years;
  • your assets aren’t worth more than £2,000 in total; and
  • you’ve not had a DRO in the last 6 years

A DRO will last for 1 year, and once your DRO has ended you are released from your debts (with certain exceptions).

Advantages of a Debt Relief Order (DRO)

  • Your debts will be written off at the end of the DRO. There are a few exceptions, as explained opposite.
  • None of the creditors listed in the DRO application can take further action against you without the court’s permission.
  • It allows you to make a fresh start after 1 year.
  • The fee (£90) is affordable and can be paid in instalments, but the fee must be paid before the application can be made.
  • You will keep your assets and a vehicle as detailed above.
  • The approved intermediary ensures that you are given appropriate advice and that you fit the criteria for a DRO.

Disadvantages of a Debt Relief Order (DRO)

  • Your DRO is entered on a public register.
  • You can’t have a DRO if you have an existing bankruptcy order, an IVA, are subject to bankruptcy restrictions, or you have had a DRO in the last 6 years.
  • You won’t be able to have a DRO if you own a house, even if it has no equity (value).
  • You will remain liable to pay certain debts – in particular student loans, fines and some debts arising from family proceedings.
  • Your employment may be affected.
  • Your DRO could be revoked (withdrawn) if you don’t co-operate with the official receiver during the year your DRO is in force.
  • You can’t act as a director of a company or be involved in its management unless the court agrees.
  • You will be committing an offence if you get credit of £500 or more without disclosing that you are subject to a DRO.
  • You may have a debt relief restrictions order* made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly.

* An order that will place restrictions similar to those in force while subject to a DRO, which the official receiver may apply for.

At Spring Budget, the government is removing the £90 administration fee from 6 April 2024. The government is also raising the maximum debt value threshold from £30,000 to £50,000 and increasing the maximum value of motor vehicle that an individual can retain from £2,000 to £4,000, from 28 June 2024.

Source: In Debt? Dealing with your creditors – The Insolvency Service


This is a formal insolvency procedure that may be suitable if you are unable to pay your debts. You can either make an application yourself or alternatively a creditor can apply to make you bankrupt. You must owe at least £5,000 for a creditor to make you bankrupt.

Advantages of Bankruptcy

  • Bankruptcy often lasts for only 12 months in total.
  • Once approved, unsecured creditors can no longer proceed with legal action against you.
  • Unsecured creditors can no longer contact you regarding your debts.
  • Interest and charges are frozen by your unsecured creditors once the bankruptcy order has been made.

Disadvantages of Bankruptcy

  • If you own a home or possessions of significant value, these items could be sold to repay your debts.
  • There is an application fee of £680, although this can be paid in instalments.
  • You could be asked to make payments from your surplus income towards your debts for a period of up to 3 years.
  • Bankruptcy will be recorded on your credit file and have a negative impact for a period of 6 years.
  • Your personal details will be recorded on the Insolvency Register which is a public record.
  • Bankruptcy may have an impact upon your employment. For example, you are unable to be a company director unless you have permission of the court.

Scottish Debt Solutions

Debt Arrangement Scheme (DAS)

A DAS allows you to repay your debts by making affordable monthly repayments. A DAS can protect you from creditors taking legal action in the future in what is known as a Debt Payment Programme (DPP). Your creditors will have 21 days to object to the proposed DAS and if no objections are raised the DPP will go ahead.

Advantages of a Debt Arrangement Scheme (DAS)

  • Your creditors can no longer pursue the debts or add further interest and charges.
  • Your assets are usually not at risk of being sold.
  • In some circumstances, if a creditor rejects the administrator may be able to force them to agree.
  • You will only make one affordable monthly repayment.

Disadvantages of a Debt Arrangement Scheme (DAS)

  • Your credit rating will be affected which may impact your ability to obtain future credit.
  • Your creditors could reject the arrangement.
  • Reducing your payments may mean it takes longer to become debt free.

Failure to comply with the DAS means it could be revoked.

Protected Trust Deed

A trust deed is a formal agreement which allows you to make reduced payments to your debts, a trust deed usually lasts for 4 years and once it is completed the debts included are written off. An ordinary trust deed is not binding on your creditors until it becomes protected, a trust deed becomes protected once at least half of your creditors have agreed to the Deed.

To qualify, you must

  • Have over £5000 in unsecured debts
  • Be making enough each month to cover your proposed repayments
  • Have an income that isn’t just benefits
  • Not have been bankrupt in the last five years

Advantages of a Trust Deed

  • Interest and Charges are frozen.
  • Allows you to make one affordable monthly payment.
  • Some assets, such as your home, may be protected.
  • Creditors are no longer able to pursue the debts or enforce legal action.

Disadvantages of a Trust Deed

  • There are fees payable for the work involved in setting up and managing a Trust Deed, however, these are included within your monthly payments.
  • Your credit rating will be affected for 6 years.
  • Your details are recorded on the insolvency register, which is a public record.

If you have significant assets such as a vehicle worth more than £3000, you may be asked to sell this to repay your creditors. If you’re a homeowner, you may be asked to release equity from your property.

Minimal Asset Process (MAP)

MAP is the name given to a special type of bankruptcy in Scotland. To qualify for this option, you need to have a low level of debt and very few assets.

In order to go bankrupt using the MAP process, you have to meet the following criteria.

  • Your total debts are no more than £25,000.
  • Your total assets are worth no more than £2,000.
  • You don’t have any individual assets that are worth more than £1,000. (A car that you reasonably need will not be counted as long as it is not worth more than £3,000).
  • You don’t own any land or buildings.
  • You have a valid certificate for sequestration. This is a formal document confirming that you cannot pay your debts as they fall due.
  • A money adviser must assess your income and expenditure using the Common Financial Tool. This must show that you have no money available after your essential bills to pay to your creditors. If your income is made up of only benefits, and you have received them for at least six months before your application, you automatically meet this condition.
  • You have not been made bankrupt under the minimal asset process rules in the last ten years.
  • You have not been made bankrupt under other rules in the past five years.

Advantages of a Minimal Asset Process (MAP)

  • Creditors cannot contact you during the 6-months process.
  • You do not need to appear in court.
  • You will not need to make any monthly payments.
  • Debts may be written off after the 6-month period and creditors are no longer able to pursue the debts.

Disadvantages of a Minimal Asset Process (MAP)

  • You may have to pay a £50 fee.
  • Your credit rating will be negatively affected.
  • You must meet the qualifying criteria above to enter this solution.
  • You will be subject to some restrictions during the first 12 months after the MAP; For example, you cannot apply for credit above £2000 without telling the lender you’re bankrupt.


Sequestration is the Scottish equivalent to Bankruptcy. You must meet certain criteria to enter into sequestrations and these are:

  • Your total debts must be at least £3,000.
  • You must not have been made bankrupt under other rules in the past five years.
  • You must either be apparently insolvent or have a certificate for sequestration.

Advantages of Sequestration

  • You are legally protected meaning creditors can no longer pursue you.
  • Interest and Charges are frozen.
  • Debts are typically written off after 12-months.

Disadvantages of Sequestration

  • Assets of value may be repossessed (including your home – if homeowner).
  • There is an application fee of £200.
  • Your details will be listed on the insolvency register which is a public.
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