MT Week - What happens when you have too much debt?

In the last couple of weeks I’ve written about what happens when you go to a debt charity for help, and some of your options for getting out of debt.

But what if the amount of debt you owe is simply too much?

The answer may well be insolvency, which effectively wipes the slate clean.

In the UK, you have three insolvency options - bankruptcy, individual voluntary arrangement (IVA) and debt relief board - with different implications for each one.

Before you decide which route to go down, you should obviously talk to a debt advisor to see which option might be right for you.

In some cases, you may not even need to become insolvent.

To help you get started, here’s how each of the options work.