Do you have debts in England and don't know where to start? The United Kingdom offers several legal ways out of debt - bankruptcy, an IVA and a DRO. We will explain them in Polish, help you choose the right one and refer you to a licensed professional. Returning to Poland with debts from the UK? We will advise you on what to do next. The conversation is free and confidential.
In England and Wales, an individual's debts can be resolved in several ways. The choice depends on the amount of your debts, your income and your assets - especially whether you own your home.
Scotland and Northern Ireland have separate rules (e.g. Sequestration and Trust Deeds in Scotland). If you live there, let us know and we will point you to the right route.
The application is submitted online to the Insolvency Service, and the fee is £680. You usually receive the decision (the bankruptcy order) within 28 days. Bankruptcy normally lasts 12 months - after that, your debts are written off. If you have surplus income, you may have to pay instalments from it for up to 3 years (an Income Payments Agreement). Your assets - including your home, if you own it - may be sold for the benefit of your creditors. The entry appears in the public register (the Insolvency Register) and on your credit history for 6 years.
This is a formal arrangement with creditors: you repay an agreed part of your debt in instalments, usually over 5 years, and the creditors write off the rest. An IVA is handled by a licensed insolvency practitioner. It usually allows you to keep your home, which is why it is often chosen by property owners with a regular income. The entry also affects your credit history for 6 years.
This is a write-off of debts for people in a difficult situation with no significant assets. The current conditions in England and Wales are:
| Condition | Limit |
|---|---|
| Total qualifying debts | up to £50,000 |
| Surplus income (after expenses) | up to £75 per month |
| Assets | below £2,000 |
| Vehicle | one, worth up to £4,000 |
| Property | as a rule, not for homeowners |
Since April 2024, a DRO has been free of charge (the £90 fee was abolished). The application is made through an approved intermediary - usually an adviser at an organisation that helps people in debt. A DRO lasts 12 months, after which the debts are written off.
If you need a moment to get your affairs in order, Breathing Space gives you up to 60 days of protection: creditors pause enforcement action and the charging of most interest. The application is made through a debt adviser.
Formal debt relief procedures in the UK are handled by licensed professionals (an insolvency practitioner for an IVA, an approved intermediary for a DRO). Free debt advice is also available from, among others, StepChange, Citizens Advice and MoneyHelper. We give thresholds and fees as at 2026 - they change, which is why we review each situation individually.
Leaving the United Kingdom does not wipe out British debts - a creditor can still pursue them. Before you leave, it is worth checking whether debt relief can still be started in the UK, or whether it is better to use consumer bankruptcy in Poland after you return.
We handle both sides: the British debt relief route and consumer bankruptcy in Poland - the latter together with Global Accounting. See also returning to Poland with a UK company.
Bankruptcy is a formal declaration of insolvency - it usually lasts 12 months, and your assets (including your home) may be sold. An IVA is an arrangement with creditors, paid in instalments over about 5 years, and it usually allows you to keep your home. A DRO is a write-off of debts for people on a low income with no assets, with debts of up to £50,000. The right choice depends on your income, assets and the amount of your debts.
The fee for a bankruptcy application is £680 and is paid to the Insolvency Service. Since April 2024, a DRO has been free of charge. The cost of an IVA depends on the insolvency practitioner handling it - it is usually included in the monthly instalments of the arrangement.
A DRO is for people with total debts of up to £50,000, surplus income of up to £75 per month and assets below £2,000 (plus one vehicle worth up to £4,000). As a rule, it is not available to homeowners. The application is made through an approved intermediary.
If you own a property, it may be sold in bankruptcy for the benefit of your creditors. People who want to keep their home more often choose an IVA. We review each case individually before you make a decision.
Bankruptcy, an IVA and a DRO are entered in the public insolvency register and on your credit history for 6 years from the start. During this time it is harder to obtain credit, but once your debts have been written off you can begin to rebuild your creditworthiness.
Leaving the United Kingdom does not write off British debts. Before you return, it is worth checking whether to start debt relief while still in the UK, or to use consumer bankruptcy in Poland. We help you assess both routes and guide you through the right one - the Polish part together with Global Accounting.
We explain the options in Polish, analyse your situation and help you prepare your case, while the formal procedures are handled by licensed professionals (an insolvency practitioner for an IVA, an approved intermediary for a DRO). We handle consumer bankruptcy in Poland together with Global Accounting.
Book a free consultation - we'll answer your questions and propose a solution tailored to your goals.