Bankruptcy is the best known form of insolvency. Scotland has two types of bankruptcy; Full Administration (or sequestration) as well as the ‘minimal assets process’ version, which was designed for people on lower incomes and with fewer assets.
Debt relief orders (DROs) are another type of insolvency available in England and Wales for people on low incomes.
Individual Voluntary Arrangements (IVAs) and Protected Trust Deeds (Scotland) are types of insolvency where you make payments over an agreed term or as a lump sum payment.
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