Bankruptcy and DRO Eligibility Checker UK — Free Tool
Overwhelmed by debt with no way out?
Free regulated help is available right now. StepChange can apply for Breathing Space on your behalf — 60 days of legal protection while you get advice.
Get Free Help from StepChange →A Debt Relief Order costs £90. Bankruptcy costs £680. An IVA costs nothing upfront. Three very different routes to the same destination — a legal fresh start. Most people going through serious debt problems have no idea which one applies to them, which one is cheapest, or which one protects their home. This checker asks you six plain English questions and tells you which options you are eligible for and why.
The stigma around insolvency is outdated. These are legal mechanisms that exist specifically to give people a structured way out of unmanageable debt. Millions of people in the UK have used them and rebuilt their finances.
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DRO vs Bankruptcy vs IVA — Plain English
Debt Relief Order (DRO) — £90
For people with under £30,000 of debt, under £2,000 in assets, under £75 disposable income per month, and who do not own their home. The cheapest route to a legal fresh start. All qualifying debts written off after 12 months if your situation does not improve. Applied through an approved intermediary — StepChange can do this for free. The DRO debt threshold was raised from £20,000 to £30,000 in June 2024.
Bankruptcy — £680
For larger debts or situations where a DRO is not available. The £680 fee covers the adjudicator fee payable to the Insolvency Service. Discharged after 12 months in most cases. Your assets — including equity in property — may be used to pay creditors. If you own a home with equity, the trustee may need to sell it or reach a deal with your mortgage lender. Not suitable for everyone but often the fastest route for non-homeowners with large unsecured debt.
IVA — Individual Voluntary Arrangement
A formal agreement with your creditors to repay what you can afford over 5–6 years. The rest is written off at the end. No upfront cost — the insolvency practitioner takes fees from your monthly payments. Suitable if you have regular income and over £10,000 of debt. Protects your home from sale if you keep up with payments. Not suitable if your income is too low or too unstable.
Apply for Breathing Space First
Before proceeding with any insolvency option, apply for Breathing Space. It gives you 60 days of legal protection — interest frozen, enforcement stopped, creditors cannot contact you. Apply free through StepChange. It gives you the breathing room to get proper advice without the pressure of collection calls and mounting interest.
Not sure if insolvency is right for you?
StepChange provides free regulated advice on all your options — DRO, bankruptcy, IVA, DMP and Breathing Space. No judgment. No cost.
Get Free Advice from StepChange →Frequently Asked Questions — Bankruptcy and DRO UK
What is the DRO debt threshold in 2026?
The DRO debt threshold is £30,000 — raised from £20,000 in June 2024. The asset threshold is £2,000 and the disposable income threshold is £75 per month. The application fee is £90, paid to the Insolvency Service. Bankruptcy costs £680 total — the adjudicator fee payable when you apply online through Gov.uk.
Does a DRO or bankruptcy affect my ability to rent a home?
Yes — landlords and letting agents often run credit checks and a DRO or bankruptcy on your file will be visible for six years. Some landlords will decline applications from people with insolvency records. Having a guarantor or paying a larger deposit can help in some cases. Social housing applications are not usually affected.
Can I keep my bank account during bankruptcy?
Your main bank account may be frozen when bankruptcy is declared. You should open a basic bank account with a different bank before applying — Monzo, Starling and some credit unions accept people in bankruptcy. You are entitled to a basic bank account during bankruptcy.
Will my employer find out about my DRO or bankruptcy?
Bankruptcy and DROs are recorded on the Insolvency Register which is public. Most employers do not check it routinely. However some employment contracts — particularly in finance, legal, and public sector roles — require you to disclose insolvency. Check your contract before proceeding.
Can I apply for a DRO myself or do I need help?
You cannot apply directly — you must go through an approved intermediary. StepChange, Citizens Advice and National Debtline all provide this service free of charge. Contact StepChange on 0800 138 1111 to start the process.
What is the difference between bankruptcy and a DRO on my credit file?
Both stay on your credit file for six years from the date of the order. Both are visible on the public Insolvency Register during the restriction period — 12 months for standard bankruptcy, 12 months for a DRO. The practical credit file impact is very similar — both represent serious insolvency events. The key difference is eligibility, cost and the asset treatment.
Related reading: UK Debt Help — Complete Guide · Statute Barred Checker UK · What Happens If I Stop Paying Debt?
Disclaimer: DebtShift is an educational platform. This tool provides a diagnostic summary — not insolvency or legal advice. Always get free regulated advice before proceeding with any insolvency option. Contact StepChange (0800 138 1111), National Debtline (0808 808 4000) or Citizens Advice. DebtShift is not FCA regulated.