The short answer
A formal debt solution deals with money you already owe. It doesn't pay for the broadband you use from now on. The official guidance we read doesn't name broadband, so we've applied what it says about phone and utility bills. In outline:
- Old broadband arrears (bills missed before the solution started) can usually be included.
- Your monthly bill from then on is a living cost. Guidance on DROs and Scottish bankruptcy and trust deeds says ongoing bills such as phone must be kept up; for bankruptcy and IVAs in England and Wales, bills are part of the living costs your trustee or insolvency practitioner budgets for.
- Your contract may give the provider the right to end it because you've gone bankrupt or made an arrangement with creditors. Some big providers' terms say this; others we read don't.
- Disconnection must follow Ofcom's rules. The insolvency law protecting essential supplies only covers business supplies.
This guide is general information drawn from the sources listed, not legal or financial advice. If you're behind but haven't chosen a formal solution, start with our guide to what to do if you're struggling to pay your broadband bill, which covers repayment plans and Breathing Space.
Arrears and ongoing bills: the split that matters
The key date is the day your solution starts. Broadband bills missed before then are arrears your adviser may be able to list; bills for service after it are yours to pay. This is how the guidance we read puts it:
Solution | Where | Old broadband arrears | Your monthly bill afterwards |
|---|---|---|---|
Bankruptcy | England and Wales | Bankruptcy can free you from most debts. The exceptions GOV.UK names include secured debts, debts from fraud and debts not included, such as student loans | The trustee works out your living costs, which include bills and phone expenses |
Debt Relief Order (DRO) | England and Wales | National Debtline lists phone bill arrears as a priority debt to include if you need to keep the phone as an essential service | You still pay your rent and bills as normal |
Individual voluntary arrangement (IVA) | England and Wales | Most types of debt can be included, though creditors may object | Make sure it's in the budget your IVA payment is based on: GOV.UK says your insolvency practitioner works out what you can afford to repay |
Bankruptcy (sequestration) | Scotland | You may be able to include missed utility payments, but only if they were missed before the bankruptcy award date | Ongoing bills such as phone can't be included and must be kept up |
Protected trust deed | Scotland | Utility arrears can be included if missed before you signed | Ongoing bills such as phone can't be included and must be paid separately |
An example (hypothetical): you miss two monthly broadband bills, then sign a trust deed in Scotland before the next is due. The two missed bills can go into the trust deed; the next bill, and every one after it, has to be paid separately.
Watch the bill that straddles the date. Many providers bill ahead. TalkTalk's terms, for example, say it normally sends bills in advance except for usage charges such as calls. So a bill issued just before your solution starts can cover service after it. Ask your adviser how to treat it.
Bankruptcy in England and Wales
GOV.UK says bankruptcy can free you from most debts, and that you're usually released (discharged) automatically after 12 months, though it can take longer if you don't co-operate with the trustee, the person who deals with your bankruptcy. Applying yourself costs £680 (GOV.UK, checked October 2026), and an adjudicator at the Insolvency Service checks the application.
Your broadband as a living cost
While you're bankrupt, the trustee decides how much you need for expenses. GOV.UK's list includes rent or mortgage, bills, food and phone expenses. If you have spare income, you may be asked to pay some of it in under an income payments agreement lasting up to 3 years; GOV.UK says the trustee won't normally ask for one if your main or only income is state benefits.
National Debtline says the official receiver forms a view on what's a reasonable expense. Its example is a mobile phone: if a monthly payment gives you more allowance than you need, you may be asked to pay the cost of the extras into the bankruptcy. It gives no broadband example, but if you pay for TV or extras you could live without, a broadband-only deal without TV or calls may be easier to justify.
How providers may want you to pay
National Debtline says gas, electricity and telephone companies usually want a bankrupt customer to pay in a way that doesn't involve credit. It suggests that if you live with a partner, the account could be moved into their name, and says a deposit is sometimes asked for as security.
Your bank account matters too. GOV.UK says the bank will usually freeze your accounts, and that your bank can use money in them to pay other debts you owe it (called ‘set off’). A broadband Direct Debit from a frozen account may not be paid, so plan how the next bill will be paid and give your provider any new account details.
Other restrictions that touch broadband
- You can't borrow more than £500 without telling the lender you're bankrupt. The guidance doesn't say whether a broadband contract counts, so ask your trustee before signing one that spreads equipment costs.
- Bankruptcy can stay on your credit reference file for 6 years from the date of the bankruptcy, which can affect a provider's credit check on a new contract.
Debt Relief Orders
A Debt Relief Order (DRO) is for people with low income and few assets. GOV.UK says you're generally eligible if you owe less than £50,000, have less than £75 a month spare income and less than £2,000 of assets, among other conditions (GOV.UK, checked October 2026). You can't apply on your own: you go through an approved debt adviser, and you don't pay for a DRO.
Payments on the debts in the order stop for 12 months, and after that you don't have to pay them. That makes it important to get your broadband arrears on the list:
- Include the arrears. National Debtline lists arrears on your phone bill, if you need to keep it as an essential service, among the priority debts and says arrears on priority debts should be included. Tell your adviser if broadband and landline share one bill and you rely on them.
- Keep paying the current bill. National Debtline says you must keep paying ongoing household bills as normal, and GOV.UK says you still pay your rent and bills.
- Don't keep paying the included arrears. National Debtline says you should not usually make any more payments on debts in the order (there are some exceptions). If your Direct Debit was also collecting a repayment towards the arrears, ask the provider to collect only new charges.
- If the provider chases included arrears. National Debtline says creditors in the order aren't usually allowed to ask you for more payments; if they do, it suggests sending its sample letter and telling the official receiver.
While the DRO lasts you can't borrow more than £500 without telling the lender about it. GOV.UK says the DRO goes on the Individual Insolvency Register until 3 months after it ends and stays on your credit record for 6 years.
Individual voluntary arrangements
An individual voluntary arrangement (IVA) is a formal agreement with your creditors to pay all or part of what you owe, managed by an insolvency practitioner. GOV.UK says it starts if creditors holding 75% of your debts agree, and then applies to all of them, including any who voted against it. It stops creditors taking action for the debts in it. There are usually two fees: a set-up fee and a handling fee each time you pay.
What this means for broadband:
- Arrears can go in. National Debtline says you can include most types of debt, including priority debts, though creditors may object. If you owe your provider, it's one of the creditors your practitioner contacts.
- Put the monthly bill in your budget. National Debtline suggests completing a personal budget to see how much spare income you have for an IVA, and explains what the insolvency practitioner should do to check your income and outgoings. Include your full broadband bill so the payment you agree leaves room for it.
- Missed IVA payments have consequences. GOV.UK says the IVA can be ended if you don't keep up repayments, and the insolvency practitioner can make you bankrupt. If your costs rise, National Debtline says your insolvency practitioner may allow a payment break or agree reduced payments, but that the IVA may fail if you can't pay and creditors won't accept less. Speak to your practitioner early.
- Check your terms. TalkTalk's, for example, name an IVA as a reason it may end the agreement.
Scotland: bankruptcy, MAP and trust deeds
Scotland has its own system, with bankruptcy applications decided by the Accountant in Bankruptcy (AiB). Northern Ireland also differs and isn't covered here.
Bankruptcy (sequestration)
According to mygov.scot (checked October 2026), you apply through an approved money adviser, it costs up to £150 (some people pay nothing) and AiB decides. You may need to make payments for 4 years unless you have no disposable income. You're usually discharged after one year, or after 6 months under the Minimal Asset Process (MAP).
mygov.scot says you may be able to include missed payments (arrears) for utilities, but only if they were missed before the bankruptcy award date. Ongoing bills such as phone can't be included, and you must keep paying them alongside any bankruptcy payments. It adds that bankruptcy can stay on your credit file for at least 6 years.
The borrowing rule is different from England and Wales: mygov.scot says you must tell a lender you're bankrupt if you borrow over £2,000, or any amount if you owe £1,000 or more in other debts. Ask your adviser whether that touches a broadband contract that spreads equipment costs.
Protected trust deeds
A trust deed is a legally binding agreement with your creditors to pay all or some of what you owe, usually over 4 years, with a trustee you agree terms with. It can become protected if the majority of creditors are happy with its terms. Once it's protected, creditors can't contact you directly, chase payments, add interest or charges or take court action, and it must be protected for the remaining debts to be written off at the end.
As the table above shows, phone and utility arrears missed before you signed can go in, but ongoing bills can't. New debts taken on after signing aren't covered either, so falling behind on the broadband bill later leaves you exposed to that creditor. Your credit rating is affected for six years from the start.
GOV.UK also points Scottish residents to the Debt Arrangement Scheme, through which you can arrange a Debt Payment Programme to repay what you owe.
Can your provider end your contract?
Yes, if its terms allow it. Several providers write insolvency into the list of reasons they can end your agreement. This is what the terms we read say:
Provider | What the terms say |
|---|---|
It may end the agreement immediately if you become insolvent or bankrupt or enter any arrangement with your creditors. If it ends the agreement under that section during a minimum period, it can charge an early disconnection fee. | |
It may suspend services or end the agreement if you become bankrupt or make an arrangement with creditors, and termination fees then apply. | |
It may end the agreement immediately by written notice if you become bankrupt, enter an IVA or anything similar (clause 15.4(c)). | |
Either side can end the agreement on 30 days' written notice if the other can't pay its debts or becomes insolvent or bankrupt. | |
Their lists of reasons for ending a service immediately don't mention bankruptcy or an arrangement with creditors. They do include not paying, and an early exit fee applies if they end a service for a listed reason during the minimum term. |
Three things to take from this:
- "May" is a right, not an automatic step. We found no source on how often providers use these clauses for households. Ask yours.
- An exit fee can be a new charge. Ask your adviser how one would be treated in your solution.
- Terms change. These are the versions we read in October 2026. Look for the section on ending the agreement in your own terms; our guide to reading your broadband contract summary explains which documents to check. The TalkTalk terms quoted here are the version dated 5 October 2026.
Other providers are on our broadband providers hub.
Why the essential supplies law won't usually protect a home connection
The Insolvency Act 1986 gives extra protection to some supplies after a bankruptcy order or an approved voluntary arrangement. Section 372 lists communications services from a public electronic communications provider. The supplier can ask the office-holder (such as the trustee, or the supervisor of an IVA) to guarantee new charges personally, but can't make payment of old arrears a condition of carrying on.
The catch is in section 372(3): it applies only to supplies requested for the purposes of a business the person carries on. Section 372A, which stops insolvency-triggered termination terms working once an IVA is approved (for contracts made on or after 1 October 2015), is also limited to supplies for a business, and even then the supplier can still end the contract in set cases, such as charges after approval going unpaid for 28 days.
Scotland has matching rules in sections 222 and 173A of the Bankruptcy (Scotland) Act 2016, covering sequestration and trust deeds (section 173A applies to contracts made on or after 1 August 2017), limited to business supplies in the same way. So for a household line, your protection comes from your contract and Ofcom's rules. If you're self-employed and the line is for your business, ask your insolvency practitioner or trustee whether these sections apply.
Can they cut you off?
Besides an insolvency clause, the other way to lose service is unpaid bills. Citizens Advice says that if you keep not paying, a provider might restrict or disconnect the service, pass the debt to a collector or take you to court. Ofcom's General Conditions say any steps to recover unpaid bills or disconnect must be proportionate and not unduly discriminatory, with a warning before the service is interrupted or cut off.
Under a debt solution the risk sits mainly with new arrears. In a DRO, IVA or protected trust deed, included creditors are restricted from chasing the old ones; but the solution doesn't pay your ongoing bill, so the provider can treat missed payments after the start date like any other customer's.
If a provider chases arrears that are in your solution, tell whoever runs it: the official receiver for a DRO, your insolvency practitioner for an IVA, or your trustee. If a bill looks wrong, our guide to disputing a broadband bill explains how to challenge it in writing.
Keeping connected: a step-by-step plan
- Gather your broadband paperwork before you see a free adviser: the latest bills, your contract summary, your contract end date and the amount you're behind.
- List the arrears with your adviser and say whether you rely on the line as an essential service, for example for work, health or a landline on the same bill.
- Keep the monthly bill going. Don't cancel your Direct Debit without agreeing another way to pay: BT's and EE's terms, for example, list that as a reason to suspend or end a service. Check with your adviser that it only collects new charges, and set up a new one if your bank account changes or is frozen.
- Read the ending-the-agreement section of your terms for words such as bankrupt, insolvent, arrangement or IVA.
- If your provider contacts you about your solution, ask it in writing whether it intends to end the contract, and whether it would charge an exit fee if it did.
- Cut the monthly cost if you can (see below), and check each new bill.
Making the bill smaller
If you get certain benefits you may qualify for a cheaper social tariff: see how broadband social tariffs work, and what happens to a social tariff when your benefits change. Some councils also help: see council help with broadband bills.
If you're out of contract or your provider ends the agreement, you may need a new deal. You can compare deals at your postcode or start from our cheap broadband deals page. The comparison shows live deals from our partner; we don't switch you, can't say whether a provider will accept you and don't give personal financial advice. Before ordering, read how credit checks work in our guide to broadband credit checks, and if you still owe your current provider, read switching broadband when you owe money first.
Questions to ask your adviser
Take these to your debt adviser, insolvency practitioner or trustee:
- "Which of my broadband bills count as arrears, and which do I keep paying?"
- "How much have you allowed for broadband in my budget, and is my current package acceptable?"
- "If my provider ends the contract early and charges an exit fee, what happens to that fee?"
- "Do the borrowing rules where I live affect a new broadband contract with equipment paid over time?"
- "Will my bank account be frozen, and how should I pay my broadband bill if it is?"
Where to get free debt advice
Get free, independent advice before you apply. Two charities that give free debt advice by phone and online in England, Wales and Scotland:
- National Debtline: 0808 808 4000. It publishes separate guides for England and Wales and for Scotland.
- StepChange Debt Charity: 0800 138 1111. It advises on IVAs, DROs and bankruptcy, and on the Scottish options.
GOV.UK also points to MoneyHelper for where to find free debt advice. In England and Wales, a DRO can only be set up through an approved debt adviser, an adviser can tell you whether a Breathing Space would help while you decide, and GOV.UK says a charity may be able to help if you're struggling to pay the bankruptcy fee.
In Scotland, mygov.scot lists Scottish Government-funded advice from National Debtline, StepChange, Advice Direct Scotland, Citizens Advice Scotland, Christians Against Poverty and your local council's money advice service.
Bankruptcy, DRO and IVA broadband FAQs
Will my broadband be cut off if I go bankrupt?
Not automatically. Bankruptcy deals with what you owed beforehand. The monthly bill isn't covered and is part of the living costs your trustee allows for, so keep paying it. Some providers' terms, such as Virgin Media's and Vodafone's, let them end the agreement if you become bankrupt, while BT's and EE's lists of reasons don't mention it. Any disconnection for unpaid bills must be proportionate and come with a warning under Ofcom's rules.
Can I include broadband arrears in a Debt Relief Order?
Yes, arrears can go in. National Debtline lists arrears on your phone bill, if you need to keep it as an essential service, among the priority debts to include. Your ongoing bill isn't covered: you must keep paying household bills as normal while the 12-month DRO runs. Apply through an approved debt adviser, who can check how to list it.
Do I still have to pay my monthly broadband bill during an IVA or trust deed?
Yes. mygov.scot says ongoing utility bills, including phone, can't be included in a trust deed and must be paid separately, and new debts after signing aren't protected. For an IVA, GOV.UK says your insolvency practitioner works out what you can afford to repay, so make sure your full broadband bill is in the budget your monthly payment is based on.
Can my provider end my contract because I've entered an IVA?
It can if its terms say so. TalkTalk's terms name an IVA as a reason it may end the agreement immediately by written notice, and Virgin Media's and Vodafone's cover any arrangement with creditors. The Insolvency Act rule that switches such terms off after an IVA is approved only applies to supplies for a business, so it won't protect a household connection.
Will I pay an early termination fee if my provider ends the contract because I'm bankrupt?
Possibly. Vodafone's terms say termination fees apply when it ends the agreement for reasons including bankruptcy, and Virgin Media's say it can charge an early disconnection fee if it ends the agreement under that section during a minimum period. Ask your provider in writing, and ask your adviser how any fee would be treated in your solution.
Can I put the broadband account in my partner's name?
National Debtline says that if you live with a partner, a telephone account could be transferred into their name, and that such companies usually want a bankrupt customer to pay in a way that doesn't involve credit, sometimes with a deposit as security. Your partner would become the account holder, so talk it through together and check the provider's own process for transferring an account.
