IVA vs Debt Relief Order (DRO): Which Debt Solution Is Right for You?

When you’re struggling with unmanageable debt, it can feel overwhelming to know where to turn. At Step Away Debt, we specialise in helping people across the UK find practical solutions that fit their financial situation. Two common forms of debt relief are Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs) — but which one is right for you?

What Is an IVA?
An Individual Voluntary Arrangement (IVA) is a formal agreement between you and your creditors to repay a portion of your debt over a set period (usually 5–6 years). At the end of the term, any remaining unsecured debt is written off.
Key features:
Suitable for debts over £6,000


You must have a regular income


Protects you from legal action and further interest


Affects your credit rating for 6 years


What Is a Debt Relief Order (DRO)?
A Debt Relief Order (DRO) is designed for people with low income and minimal assets. If accepted, your debts are frozen for 12 months. If your financial situation hasn’t improved in that time, your debts are written off.
Which Option Should You Choose?
If you have a regular income, want to protect assets (like your car or home), and can afford to pay something each month, an IVA may be more appropriate.


If you’re on low income, have few or no assets, and your debt is below the threshold, a DRO might offer quicker, more affordable relief.


Need Expert Advice?
At Step Away Debt, we understand that every financial situation is different. Our experienced debt advisors can help you assess your options and guide you toward the best solution — whether that’s an IVA, DRO, or another debt relief route.