4)    Debt Relief Order (DRO) [England & Wales]

Debt Relief Orders are a very new addition, introduced in the last few years. They are designed for those with very few assets and very limited income. An application for a DRO can be made if you owe less than £15,000. If an application is granted the creditors are prevented from contacting you for a period of 12 months, during this time the interest and charges on the debts are frozen. If your circumstances haven’t improved the debts will be written off at the end of the year. To qualify you need to ensure that your assets are worth less than £300 (if you have a car it has to be worth less than £1,000). You also need a disposable income of less than £50 per month. You apply by making an application via an ‘approved intermediary’, all the aforementioned agencies have intermediaries that you can approach to help you. More info here: 

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders

5)    Administration Order [England & Wales]

An Administration order is a single county court order that covers credit debts and certain other debts, which are all treated together. It allows you to make a single payment every month into the court. The court staff will then divide the money amongst your creditors on a pro-rata basis. Whilst an Administration order is in place, none of the creditors listed on it can take any action against you without first getting the court's permission. Visits from debt collectors, letters or phone calls from your creditors should stop once the Administration order is in place. To qualify for an Administration order you would need to have at least one county court judgment (CCJ), at least one other debt and an overall debt level of less than £5,000. More info here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=09_administration_orders

6)    Debt Arrangement Scheme (DAS) [Scotland]

A DAS is a debt-payment arrangement system set up by the Scottish Government. It is designed to help you manage your debt repayments and can also provide protection from creditors making you bankrupt or enforcing your debts by diligence (enforcement action through the sheriff court system).Under a DAS debt-payment programme, you will have to make a single regular monthly payment, whilst you keep up with your payment the interest and charges on the debts will be frozen. A DAS has many similarities to a DMP although it affords greater protection to you. To qualify you need to demonstrate that you can clear the debt within a reasonable period of time, this usually equates to within ten years. More info here: 

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=22_debt_arrangement_scheme

7)    Trust Deed [Scotland]

A trust deed is a formal agreement between you and your creditors. It passes your assets and property to a trustee to be administered for the benefit of creditors and the payment of debts. Once the trust deed is set up it is legally binding. Providing it meets certain conditions, a trust deed may be recorded in the Register of Insolvencies as a 'protected trust deed'. This prevents the creditor from making you bankrupt so long as you stick to the terms of the trust deed. A trust deed usually lasts for 36 months so is a relatively quick option, it is an insolvency measure so has several serious implications that would need to be considered – such as a significant impact on your credit rating. If you are under a trust deed you are not allowed to be a company director. More info here:

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=21_trust_deeds

8) Write Off [England, Wales & Scotland]

In certain circumstances your creditors may consider writing your debt off, this is especially pertinent if you are unwell and are unlikely to get better. If you have assets such as a property it may be significantly more difficult to convince a creditor to allow you a write-off as they may wish to try and secure the debt. Often the creditor may wish to see supporting evidence – such as a doctor’s letter. As with all debt options you may need to be persistent, it could take several attempts before a creditor grants the write-off.

9) Full & Final Settlements [England, Wales & Scotland]

A full & final settlement is an arrangement where a creditor accepts a lump-sum payment to clear the balance of a debt. This lump-sum is a lesser sum that the total amount owing, thus some of the debt is written-off. Full & final settlements can often write significant sums of money off, especially if the debt is old or if the debtor has had a change of circumstances which means that repaying the debt would take a very long time, if at all. Some creditors may call a full & final settlement a ‘short settlement’. The key to negotiating full & final settlements is to do so in writing, always ensure that the creditor is going to accept your settlement and not pursue the remaining balance or pass it on to a third-party to collect. You should always keep this confirmation in a safe place as it can be used as evidence should a creditor ever try and chase for the remaining balance (this is quite a rare occurrence). Full & final settlements are particularly successful if you are being chased for an old debt, or if the debt has been sold on to a debt collection agency. If the debt is being ‘passed around the houses’ do not be afraid to offer a very low sum. 

You may have read on the forum that full & final settlements are not contractually binding from a legal standpoint; in some instances that likely to be true. This is why it is vital that you keep a copy of the creditor’s acceptance of the settlement. If they then go against their promise it can be argued that they are acting unfairly, the legal doctrine of ‘promissory estoppel’ will afford you legal protection if it ever went to court. For piece of mind some individuals draw up a legal document outlining the full & final settlement, it’s unlikely you will have to do this with your regular creditors. More info here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers