Your journey out of debt with CAP

Explore your options and how CAP could help you. 

Every year, the CAP team empowers around two thousand people to become debt free, and we’re delighted to be walking with you on this journey.

We’ve put this information together as a guide to your journey out of debt. It explains some of the different routes you can take and seek to answer any questions you may have.

Remember, we’re here to take you through the process every step of the way. Our aim is to see you become debt free — so let’s get started.

Your options

Debt Management Plan

Available in: Scotland, England, Northern Ireland, Wales.

A Debt Management Plan involves creating a bespoke, sustainable budget for you as you make manageable payments towards your debts.

Many people choose to repay their debts over time, with CAP’s help. We can set up payment arrangements with each of your creditors and distribute the monthly payment that you make to CAP amongst them. 

Creating a Debt Management Plan with CAP

Debt Relief Order (DRO)

Available in: England, Northern Ireland, Wales.

A DRO is for people with a low income, with a low level of debt and few assets. You pay a fee of £90 to the Insolvency Service, and many debts can be cleared this way. We can help you with the application and submit it for you.

Applying for a DRO with CAP

Bankruptcy

Available in: England, Northern Ireland, Wales.

Bankruptcy isn’t as scary as it seems – it’s a straightforward process that allows you to become debt free relatively quickly by writing most of your debts off. If you’re unable to repay your debts, it may be the right solution for you.

CAP will explain the consequences and help you through the whole process of preparing, completing and submitting an application.

Going through bankruptcy with CAP

Sequestration

Available in: Scotland

Sequestration is another word for bankruptcy. There are two types of sequestration available in Scotland: full bankruptcy and a Minimal Assets Process (MAP). If you’re unable to repay your debts, sequestration may be the right solution for you.

Going through sequestration with CAP

Minimal Assets Process (MAP)

Available in: Scotland

This is a version of bankruptcy, typically for those receiving benefits or on lower incomes, with relatively small amounts of debt. CAP will check that you qualify for this before helping you with the application and submitting it for you.

Going through a Minimal Assets Process with CAP

Protected Trust Deed

Available in: Scotland

This is a legally binding agreement between you and your creditors. You make regular payments for a fixed time, after which your remaining debts will be written off. CAP can check if this is a suitable option for you.

Creating a Protected Trust Deed

Individual Voluntary Arrangement (IVA)

Available in: England, Northern Ireland, Wales.

This is an agreement with your creditors to pay towards your debts for a period of five to six years. After this time, the remainder of your debts will be written off.

Applying for an Individual Voluntary Arrangement (IVA)

Administration Order

Available in: England, Northern Ireland, Wales.

You can pay back your debts through a plan overseen by the court, which protects you from any further action from your creditors. We can help you apply for an Administration Order if it’s the best route for you.

Creating an Administration Order

Full and Final Settlements

Available in: Scotland, England, Northern Ireland, Wales.

If you are able to pay a lump sum of money, it may be possible to make an arrangement with your creditors to settle the debt for less than the total owed. It’s up to your creditors if they’ll agree to this.

Applying for Full and Final Settlements with CAP

Debt Arrangement Scheme (DAS)

Available in: Scotland

CAP can help you apply for a DAS. This scheme is set up by the Scottish Government to allow you to repay your debts with a single monthly payment. It also stops creditors from taking further action against you.

Setting up a Debt Arrangement Scheme with CAP

Get free debt help today

To get started on your journey out of debt, enter your postcode to find your local CAP Debt Centre.