Are You Eligible for a DRO?

Check if you are eligible for a DRO:

You’re generally eligible if you meet all of these criteria:

▪️you owe less than £20,000

▪️you’ve less than £50 a month spare income

▪️you’ve less than £1,000 worth of assets

▪️you’ve lived or worked in England and Wales within the last 3 years

▪️you have not applied for a DRO within the last 6 years

Restrictions of a DRO

You must follow rules called ‘restrictions’ if you get a DRO.

This means you cannot:

▪️borrow more than £500 without telling the lender about your DRO

▪️act as the director of a company

▪️create, manage or promote a company without the court’s permission

▪️manage a business without telling those you do business with about your DRO

If you want to open a bank account, you may also have to tell the bank or building society about your DRO.

The restrictions usually last 12 months. They can be extended if careless or dishonest behaviour caused your debt problem. For example, you lied to get credit.

The official receiver will tell you if they should be extended. To extend them, you’ll be asked to agree to a ‘Debt Relief Restrictions Undertaking’. The court can issue a ‘Debt Relief Restrictions Order’ if you do not agree.

What is Bankruptcy?

Bankruptcy is one of the many debt solutions available. Your money is shared out amongst your creditors (the people you owe money to) and most of your debts are written off. There are other options available to people struggling with debt and you should speak to an expert to find out which option is the best for you.

Life after Bankruptcy

Contact the courts for a Certificate of Discharge to prove that you’ve finished your bankruptcy. You will be free from all your debts, except for debts gained by fraud, outstanding child maintenance payments, court fines, debts created after the bankruptcy order, or damages payable to anyone for personal injuries.

Is Bankruptcy right for you?

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Free Bankruptcy advice! Our Bankruptcy advice team are here to help you

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Bankruptcy is a big step we will make sure it’s right for your situation

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