Bankruptcy is a court order that you can apply for if you are in serious debt. It is a legal declaration that confirms you are unable to repay your unsecured debts and any assets you have will be used to pay off your creditors. Any debts left unsettled will be written off completely.
A Debt Management Plan (DMP) is an informal repayment agreement between you and your creditors. It allows you to reduce your debt
repayments so that you can pay back your creditors at a pace that you can afford.
A Debt Arrangement Scheme (DAS) is a debt management program, run by the Scottish government, which allows you to repay your debts over an extended period of time whilst providing you protection from their creditors taking further action against you.