Debt solutions · 4 min read
Can debt be written off in the UK? The legitimate ways
Debt can be written off in the UK through a Debt Relief Order, an IVA, bankruptcy, a full and final settlement, creditor hardship write-offs or statute-barred rules. How each works, the downsides, and how to spot misleading "write-off" adverts.
- Fact-checked
- Against official sources
- Last updated
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 3 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
Yes, debt can be written off in the UK, but only in specific ways: a Debt Relief Order, an IVA, bankruptcy, a full and final settlement a creditor agrees to, a hardship write-off by a creditor, or because a debt is statute-barred. Each has conditions and downsides. Be wary of adverts promising to “write off up to 80%” through a “government scheme” – there’s no such scheme.
The formal routes
| Route | What gets written off | Main conditions | Main downsides |
|---|---|---|---|
| Debt Relief Order | Qualifying debts after 12 months | Debts £50,000 or less, £75/month or less spare, assets £2,000 or less | Credit file 6 years; restrictions |
| IVA | Remaining included unsecured debt at the end | Regular income; creditors must approve | 5–6 years of payments; fees; credit file 6 years |
| Bankruptcy | Most debts after discharge | £680 fee | Assets can be sold; restrictions; credit file 6 years |
Read DRO guide, IVA guide and how to go bankrupt.
Informal routes
Full and final settlement
If you can raise a lump sum (for example, from family or a windfall), some creditors will accept less than the full balance to close the account. Get any agreement in writing before you pay, and make sure it confirms the account is settled in full.
Hardship write-off
Creditors sometimes write off debts where someone has no realistic prospect of paying, such as people with a serious long-term illness, a terminal diagnosis, or severe mental health problems. Ask the creditor and provide evidence. A debt adviser can help.
Statute-barred debts
If a creditor hasn’t taken court action within six years (in England and Wales) and you haven’t paid or acknowledged the debt in writing in that time, it may be statute-barred. Read statute-barred debt explained.
Debts of someone who has died
Debts are paid from the person’s estate. If there isn’t enough, the remaining debts are usually written off. Family members aren’t normally liable unless the debt was joint or they acted as guarantor.
Spotting misleading “write-off” adverts
The FCA has warned about online adverts that use phrases like “government debt write-off” to collect people’s details and push them towards IVAs. Warning signs include:
- “New government scheme” or “government-backed” claims
- promises to write off a fixed percentage of your debt
- claims that a solution has “no downsides” or “won’t affect your credit rating”
- pressure to sign up quickly
Legitimate help explains all your options, including free ones, and the downsides of each. Free advice is available from MoneyHelper and debt charities. Read is debt help really free?
Frequently asked questions
Is there a government debt write-off scheme?
No. DROs, IVAs and bankruptcy are set out in law, but there’s no government scheme that writes off debt on request.
Can council tax be written off?
Council tax arrears can be included in a DRO, IVA or bankruptcy, and a backdated reduction can lower them. Read can council tax debt be written off?
Will writing off debt affect my credit rating?
Formal solutions stay on your credit file for six years. Settlements and write-offs are usually recorded as “partially settled”.
Sources
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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