As a very rough guide, all three type of Insolvency – Debt Relief Orders (DROs), IVAs and bankruptcy – wipe out almost all common types of unsecured debt except for student loans. Secured debts are more complicated.
But if one of them looks like it might be right for you, you do need to check if any of you debts won’t be included. The following table and the notes below summaride the differenet sorts and suggest where you may need to take more advice. The best places to get advice on these are either your local CAB or National DebtLine.
(1) Debts that were previously secured (eg if the car has been repossessed or you have handed back the keys to the house) are included as normal unsecured debts.
(2) You aren’t eligible for a Debt Relief Order if you own a property
(3) Secured debts (mortgages and HP) are affected by bankruptcy even if the debts are not included, as the Official Receiver will want any equity which is in them.
(4) You need to discuss any HP arrangements with the person that is arranging your DRO
(5) Student Loans do not include career development loans that you may have borrowed from a bank – these are normal loans and can be included
(6) Rent arrears may be included, but your landlord may still be able to evict you so you need to take advice
(7) you may still have to make some repayments before you are discharged – but benefits overpayments are eventually written off.
(8) Magistrates court fines (eg driving offences), debts owes as result of a Personal Injury claim against you, court-ordered maintenance arrears, debts incurred through fraud. Fixed penalty charges (eg parking fines) can be included. Take advice if you are uncertain.
(9) Eg credit cards, store cards, loans, payday and doorstep loans, overdrafts
(11) Rules on council tax keep changing, see this article.