Debt solutions · 6 min read
Are debt solutions changing? What's planned for IVAs, DROs and bankruptcy
The government plans to consult on making personal insolvency simpler, and new standards for IVA providers are being consulted on. What's planned, what isn't confirmed, and why you shouldn't wait.
- Fact-checked
- Against official sources
- Published
- Last checked
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 6 listed on this page
Independent guidance, not a government service. This page is general information about the law in England and Wales, not financial or legal advice. Debt solutions have fees, risks and consequences. For free, impartial advice, contact MoneyHelper or a debt charity.
The short answer
Not yet. The Insolvency Service has committed to consult on reforming personal insolvency to make it simpler, and a separate consultation on new standards for IVA providers closes on 8 December 2026. But nothing has changed for DROs, IVAs, bankruptcy or Breathing Space, and no reform has a start date. If you need help with debt now, don’t wait for reforms.
On 29 July 2026, the Insolvency Service published its annual plan for 2026 to 2027. It includes a commitment to consult on options for reforming the personal insolvency regime, so the government can decide how to make the system simpler for people in debt. In September, a separate consultation opened on new standards for insolvency practitioners who run IVAs. Here’s what each of these means, and what hasn’t changed.
What’s being planned
A simpler personal insolvency system
The Insolvency Service has been reviewing personal insolvency in England and Wales for several years. Its last public update, in June 2025, set out early thinking and was clear that none of it was government policy yet.
The main option being looked at is a single process for most people with problem debt, likely to be built mainly on the DRO framework. Bankruptcy and IVAs would still have a role in some cases, for example where creditors petition for bankruptcy or to help restructure a sole trader’s business. The update also looked at building debt advice into the start of the process.
The same update said about one in five people entering an IVA would have been eligible for a DRO.
The promised consultation hasn’t been published yet, and we haven’t seen a confirmed date for it.
New standards for IVA providers
The Joint Insolvency Committee is consulting on changes to Statement of Insolvency Practice (SIP) 3.1, the standard insolvency practitioners must follow when they set up and run IVAs. The proposals focus on:
- more openness about how people are referred to IVA providers, including by lead generators and debt packagers
- stronger protection for people in vulnerable circumstances
- making sure people are fully informed about IVAs and other options before they agree to one
- whether people should get time to think before committing
The consultation closes on 8 December 2026. Any new version of SIP 3.1 would come later.
The Statutory Debt Repayment Plan
The Statutory Debt Repayment Plan (SDRP) was meant to be the second part of the Debt Respite Scheme, alongside Breathing Space. It would let people repay their debts over up to 10 years with legal protection from creditors. In 2022, the government decided not to bring it in at that point and said future decisions would depend on the personal insolvency review. It still has no start date.
Where things stand
| Status in October 2026 | |
|---|---|
| Personal insolvency reform | Consultation promised in the 2026 to 2027 plan, no date confirmed |
| A single main debt solution | One option being considered, not government policy |
| SIP 3.1 (IVA standards) | Consultation open until 8 December 2026 |
| Statutory Debt Repayment Plan | No start date |
| Breathing Space | Unchanged; a five-year review is due |
| DROs, IVAs and bankruptcy | Unchanged |
Breathing Space works exactly as before. The regulations require it to be reviewed every five years, but no changes have been announced. Read the Breathing Space guide.
What it means for you
Nothing announced so far changes your options today. You can still use a:
- Debt Relief Order, free and lasting 12 months, if your debts, spare income and assets are under the limits. Try our DRO checker.
- IVA, if you have regular spare income and want to protect your home, accepting the fees and the five or six years it lasts.
- Bankruptcy, which costs £680. Read how to go bankrupt.
- Debt management plan, free from debt charities, if you can repay in full over time.
Any major change would have to go through a public consultation first, and that consultation hasn’t started. If you’re already in an IVA or DRO, nothing announced so far affects it.
Why you shouldn’t wait
While you wait, interest and charges can keep building, and creditors can still take action, including passing debts to bailiffs. Getting advice now gives you the most choice.
- Get free advice. Debt charities and MoneyHelper won’t charge you.
- Ask about Breathing Space if creditors or bailiffs are already chasing you.
- Compare your options in debt solutions compared.
- If an IVA is suggested, ask who referred you, what other options were considered, and what the fees will be. These are the questions the SIP 3.1 changes are aimed at.
Frequently asked questions
Are IVAs being abolished?
No. Nothing like that has been announced. The June 2025 update suggested IVAs would still have a role in some cases even if a single main process were introduced.
When will the personal insolvency consultation be published?
No date has been confirmed. The Insolvency Service has committed to it in its 2026 to 2027 plan.
Should I wait for the reforms before getting help?
No. There’s no start date for any change, and your debts won’t wait. Today’s options can still help you now.
Sources
- Insolvency Service, The Insolvency Service Annual Plan 2026 to 2027
- ICAS, Personal Insolvency Review: Progress update issued by the Insolvency Service
- R3, June 2025 Personal Insolvency Review Update
- GOV.UK, Statement of Insolvency Practice (SIP) 3.1
- HM Treasury, Statutory Debt Repayment Plan consultation
- Citizens Advice, More room to breathe: Building on five years of Breathing Space
How we wrote this article
- Research: written from primary sources such as legislation.gov.uk, GOV.UK and the Insolvency Service, then fact-checked by a second member of our team. The sources are listed above.
- Checked: last checked on . Next review due April 2027, or sooner if the rules change.
- Scope: applies to England and Wales. If you live in Scotland or Northern Ireland, read our Scotland and Northern Ireland guide. It is general information, not personal advice.
- Independence: we are not a government website or service, and we are not connected to any council, court or enforcement company.
- Money: we may receive a fee if we introduce you to a debt advice firm. This doesn't change what we write. How we're paid.
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