Bankruptcy and DRO Eligibility Checker UK — Free Tool

Free Bankruptcy & DRO Eligibility Checker (UK) — Which One Actually Fits You?

Written by Hamid Ali, MSc Accounting & Finance, Founder of DebtShift · Updated August 2026

You’ve done the maths three times. It still doesn’t work. No savings, no way to realistically pay this off, and every option you’ve read about sounds like it’s written for someone else’s situation — richer, poorer, more debt, less debt. You just want to know: does one of these actually apply to me.

Two minutes of questions tells you whether you qualify for a Debt Relief Order, whether bankruptcy is the more realistic route, or whether you’re not quite in the territory for either yet.

What This Free Checker Actually Tells You

A Debt Relief Order (DRO) and bankruptcy do the same core job — legally writing off debt you genuinely can’t repay — but they’re built for different financial situations, and getting the wrong one means wasted time. DROs are now completely free to apply for (the old £90 fee was scrapped in April 2024), while bankruptcy still carries a £680 application fee — a real cost worth avoiding if a DRO is actually what fits you. This checker runs your income, assets, and total debt against the current 2026 eligibility rules for both and tells you where you actually stand.

One thing worth being upfront about: this checker covers England and Wales bankruptcy and DRO law specifically. It doesn’t cover US Chapter 7 or Chapter 13 bankruptcy, which work under completely different rules and don’t exist in the UK system — if that’s what you’re looking for, you’ll want a US-specific resource instead. Scotland and Northern Ireland also run separate insolvency systems; see the note below if that’s you.

Who Qualifies for a DRO — The Current 2026 Criteria

The rules changed significantly in 2024, and a lot of content still floating around online is based on the old limits. Here’s what actually applies now:

If you meet all of these, a DRO is very likely your cheapest and fastest route: it’s completely free to apply, it freezes your qualifying debts for 12 months, and if your situation hasn’t improved by the end of that period, the debts are written off entirely. You apply through an approved debt adviser, not directly — they check your eligibility for free before anything is submitted.

When Bankruptcy Is the More Realistic Route

If your debts are over £50,000, you own your home, or your disposable income or assets sit above the DRO limits, bankruptcy is usually what’s actually available — not because it’s a worse outcome, but because a DRO simply isn’t designed for your numbers. Bankruptcy costs £680 to apply (paid to the Insolvency Service via an adjudicator), doesn’t have a debt ceiling the way a DRO does, and can involve selling assets or your home’s equity depending on what you own. It typically lasts 12 months before you’re discharged, though some restrictions and its mark on your credit file last longer.

Not in England or Wales? Here’s Where to Actually Go

This checker is built specifically around England and Wales insolvency law — Scotland and Northern Ireland run entirely separate systems, and applying England’s DRO or bankruptcy rules to either would give you the wrong answer. If you’re in Scotland, the equivalent routes are sequestration and the Minimal Asset Process, covered in full in our guide to Scotland’s debt system. If you’re weighing this against less formal options first, see how Breathing Space or an IVA compare — both are also England & Wales routes worth ruling in or out before committing to bankruptcy or a DRO.

Frequently Asked Questions

Who qualifies for a DRO?
You need total qualifying debts of £50,000 or less, disposable income of £75 a month or less, assets under £2,000 (not counting one vehicle worth up to £4,000), and you generally can’t own your home. You must also live in England or Wales, and not have had a DRO in the last 6 years.

Is there a free bankruptcy calculator or DRO eligibility calculator?
Yes — the checker above is free, takes about two minutes, and runs your income, assets, and total debt against the current 2026 rules for both DRO and bankruptcy in England and Wales. It’s not a US bankruptcy calculator and doesn’t cover Chapter 7 or Chapter 13 — those are separate US systems.

How much does a DRO cost in 2026?
Nothing. The £90 application fee was abolished from 6 April 2024. Approved debt advisers assess your eligibility and submit the application for free — there’s no cost to you at any stage of a DRO.

How much does bankruptcy cost in the UK?
£680, paid to the Insolvency Service as part of the online adjudicator application. Unlike a DRO, there’s no upper debt limit for bankruptcy, which is why it’s often the only formal route for people with debts over £50,000 or who own their home.

Can I apply for a DRO if I own my home?
Generally, no. Home ownership is one of the main things that rules someone out of a DRO and points toward bankruptcy or another solution instead, regardless of how much equity you actually have in the property.

What’s the difference between a DRO and bankruptcy?
A DRO is free, designed for lower debt levels (up to £50,000) and minimal income or assets, and freezes debts for 12 months before writing them off. Bankruptcy costs £680, has no debt ceiling, and can involve selling assets or using home equity to pay creditors. Both are formal insolvency and both show on your credit file — a DRO for 6 years, bankruptcy typically similar.

Read Next

• Breathing Space Scheme Explained
• IVA Pros and Cons — The Full Breakdown
• Statute Barred Debt UK — When Can You Legally Stop Paying?
• Scotland’s Debt System — DAS, Sequestration & Trust Deeds
• Browse DebtShift Resources