Can debt be written off?
Yes, sometimes — but not by a government scheme you apply to online, and never for free with no consequences. Here is exactly when debt can be written off in the UK.
Applies to: England, Wales & Northern Ireland
What to do now
- Find out what you owe in total with Find My Debts.
- Get free advice before choosing any write-off route — each has consequences.
- Be wary of adverts for a “government debt write-off”.
The ways debt is written off
| Route | How fast | Cost | Credit file | Good to know |
|---|---|---|---|---|
| Debt Relief Order | 12 months, then written off | Free to apply | Recorded for six years | Debts under £50,000, spare income £75 a month or less, assets of £2,000 or less (plus one vehicle up to £4,000), not a homeowner. |
| Individual Voluntary Arrangement | Usually five or six years | Fees come out of your payments | Recorded for six years | Legally binding once approved; usually for larger debts. |
| Bankruptcy | Usually discharged after 12 months | £680 to apply | Recorded for six years | You may lose assets, including equity in your home. |
| Full and final settlement | Immediate, once accepted | Needs a lump sum | Shows as partially settled | Get the acceptance in writing before you pay. |
| Creditor hardship write-off | Whenever the creditor agrees | Free | Usually shows as settled or partially settled | Rare; usually where there is no prospect of repayment, such as serious long-term illness. |
The table puts the routes side by side; it is not a ranking of what is best for you. Which fits depends on your income, what you own, where you live and what you owe, so check with a free adviser before choosing a formal solution. In Scotland the formal options are different — see debt solutions in Scotland.
Statute-barred debts
A debt is not written off when it becomes statute-barred, but the creditor can no longer take court action to recover it. In England and Wales that is usually six years after the last payment or written acknowledgement, with no court claim. Check an old debt.
Myths to avoid
- “Government debt forgiveness scheme.” There is no such general scheme; see what these adverts really mean.
- “Write off 80% of your debt.” How much is written off in an IVA depends on what you can pay, not an advertised percentage.
- “Debt forgiveness”. This is an American term; in the UK the equivalents are the formal solutions above.
- “Debts you don’t have to pay because the agreement is missing.” A creditor who cannot produce the agreement may be unable to enforce it in court for now, but the debt still exists.
Debts that are hard or impossible to write off
Some debts usually survive formal solutions, including student loans, magistrates’ court fines, child maintenance arrears and debts from fraud. Secured debts such as a mortgage are dealt with differently.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.
Common questions
Can I get my debt written off for free?
A Debt Relief Order is free to apply for and writes off qualifying debts after 12 months, but only if you meet strict limits. Other write-off routes have costs or require a lump sum.
Is there a government scheme to write off debt?
Not a general one. Government-backed options such as Debt Relief Orders, bankruptcy and Breathing Space exist, but adverts for a 'government debt write-off scheme' usually describe an IVA.
Do debts get written off after 6 years?
Not exactly. In England and Wales most unsecured debts become statute-barred six years after the last payment or written acknowledgement if no court claim was made. They still exist, but the creditor cannot use the courts to recover them.