How To Write Off Debt

There are a few different ways to write off debt however not everyone is suitable to enter these debt solutions.

These solutions shouldn’t be entered with the sole intention to¬†write off debt unless no other solution is possible.

However if someone is struggling to repay their debt and isn’t going to be able to realistically repay the full debt there are debt solution available.

Solutions To Write off Debt

Protected Trust Deed

A Scottish only debt solution which allows people to write off 90% of their debt and repay 10% over 4 years.

The amount someone will repay is solely based on their affordability so they aren’t paying more or less than is reasonable.

The negative of entering a protected trust deed is while it may write off debt any assets someone had will need to be realised.

This means property equity, car (over a certain value) or other valuable goods need to be sold and the profits paid towards the debt.

Any additional money someone comes into while the trust deed will also be considered with the view to pay debts.


Only available to people living in England, Wales or Northern Ireland the IVA is a solution which lets people repay only a percentage of the debt outstanding.

People entering an IVA make 1 monthly contribution to their debt for 5 years, anything remaining is simply written off at the end.

Unlike the protected trust deed the IVA does allow people to keep their assets and simply adds on another year to the solution.

There’s no minimum amount which must be repaid but it is based on affordability.


When all other debt solutions have been explored, tried and failed then the last resort is entering sequestration.

It’s commonly known to most people as Scottish bankruptcy because it’s only available to people living in Scotland.

There are key differences between sequestration and bankruptcy such as the routes to entering them and cost.

The end result is if someone has no disposable income and means to repay their debt it will be written off after being in sequestration for 1 year.


The result of entering bankruptcy is the same as entering sequestration the only difference between them is how they’re entered.

People in England, Wales and Northern Ireland can go to their local county court and apply for bankruptcy and pay fee on the day.

Once this has been done they are considered bankrupt and the process begins.