Bankruptcy and DRO Eligibility Checker UK (2026 Limits)

Bankruptcy or DRO? Free UK Eligibility Checker (2026 Limits)

Written by Hamid Ali, MSc Accounting & Finance, Founder of DebtShift · Updated 3 November 2026 · Limits checked against GOV.UK on that date

You’ve done the sums three times and it still doesn’t work. No savings, no realistic way to clear this, and every option you read about sounds written for someone richer, poorer or with less debt than you.

Answer a few questions below and the checker tells you whether a Debt Relief Order (DRO) fits, whether bankruptcy is the more realistic route, or whether neither fits yet. A DRO is free and wipes out qualifying debts after 12 months if you stay under the limits. Bankruptcy costs £680 and has no debt ceiling. This page covers England, Wales and Northern Ireland for DROs and England and Wales for bankruptcy. Scotland works differently, and there is a section on it further down.

On this page: the checker · the limits · which debts count · DRO vs bankruptcy · three examples · how to apply · Scotland · questions

The checker

\u2713 Free to use. No account, no sign-up and no bank link. You only give an email if you choose to have your result sent to you.

The DRO limits in 2026, and where they come from

Plenty of pages still quote the old figures from before 2024. These are the current ones, taken from GOV.UK and the Insolvency Service’s guidance for official receivers (the people who decide DRO cases).

The £75 and £2,000 limits sit in the Insolvency Service’s technical guidance for official receivers. Owning your home generally rules you out, because it counts towards the asset limit. If that is you, the bankruptcy and IVA columns below matter more.

Which debts a DRO covers, and which it leaves alone

GOV.UK lists what can go in: credit cards, overdrafts, loans, rent arrears, utility bills, council tax, income tax, buy now pay later agreements, benefit overpayments and money owed to friends and family. What stays outside: student loans, child maintenance, Social Fund budgeting and crisis loans, secured debts, court-ordered damages for personal injury or death, and unpaid TV licence fees.

That list is where DROs surprise people. You can clear £30,000 of cards and catalogue debt and still owe the full student loan the day after. Before you apply, add up the debts that cannot be included, and check whether any old ones are past the six-year limit and may not need dealing with at all.

DRO or bankruptcy, side by side

An IVA, a formal agreement to repay part of what you owe over a set period, sits in a third column that suits people with steady spare income. We compare it properly in IVA pros and cons.

Three examples (made up, but built on the real limits)

Sam: a DRO fits. Sam rents, owes £22,400 across two credit cards and an overdraft, has £40 a month left after essentials, £600 in savings and a car worth £1,800. Every number sits under the limit, so a DRO is the likely route. Cost: nothing. The debts are frozen for 12 months, then written off if nothing changes.

Priya: bankruptcy fits better. Priya owes £61,000, which is £11,000 over the DRO ceiling. Nothing else rules her out, but the debt alone does. Bankruptcy has no ceiling. It costs £680, and anything she owns above the protected items may be sold.

Jo: neither fits yet. Jo owes £18,000 but has £180 a month spare, which is £105 over the DRO income limit. Bankruptcy would probably mean paying that spare money to creditors for up to three years. A repayment plan or an IVA is worth pricing first, and the debt payoff planner shows how long £180 a month actually takes to clear the debt.

What a DRO asks of you for 12 months

It is free, but it is not consequence-free. For the 12 months you cannot borrow more than £500 without telling the lender you have a DRO, and you cannot be a company director or set up, manage or promote a company without the court’s permission. Your adviser also checks any payments or asset transfers you made in the last two years, so selling a car to a cousin for £50 will come up. Break the rules and the court can make a Debt Relief Restrictions Order, which stretches the restrictions by 2 to 15 years. The DRO sits on your credit file for six years, and you cannot get another one for six years.

How to apply, in order

1. Speak to an approved adviser: StepChange, National Debtline, Citizens Advice or another from the GOV.UK debt advice list. You cannot apply for a DRO yourself.
2. They check your eligibility for free, build your budget and list your debts.
3. If you qualify, they send the application to the Insolvency Service online.
4. If it is approved, your creditors are told and your name goes on the Individual Insolvency Register. It stays there until three months after the order ends.
5. Report any change in your income or assets during the 12 months.

If creditors are chasing you while you decide, ask the adviser about breathing space, a 60-day pause on interest, charges and enforcement. Before that, our guide to what happens if you stop paying shows what to expect month by month.

Scotland

There is no DRO in Scotland, and England’s bankruptcy rules do not apply either. The equivalents are sequestration, the Minimal Asset Process and trust deeds, and the Debt Arrangement Scheme for repaying over time. Our Scotland guide explains each. If you are in Scotland, the checker will point you to free advice instead of giving a DRO result. For the full picture of UK options, start at our UK debt help hub.

Questions people ask at 2am

Can I get a DRO in Northern Ireland?
Yes. Northern Ireland runs its own DRO scheme, handled by the Department for the Economy. The limits are the same as in England and Wales: debts of £50,000 or less, spare income of £75 a month or less, assets of £2,000 or less and a vehicle worth up to £4,000. You apply through an approved intermediary. Scotland has no DRO.

Does a DRO really cost nothing?
Yes. The £90 fee ended on 6 April 2024 in England and Wales, and in July 2024 in Northern Ireland. The adviser checks you for free and files the application for free. If anyone asks you to pay to apply, stop and call StepChange or National Debtline.

Is buy now pay later covered by a DRO?
GOV.UK lists buy-now-pay-later agreements, credit cards, overdrafts, loans, rent arrears, utility bills, council tax, income tax and benefit overpayments as debts a DRO can include. Student loans, child maintenance, secured debts and unpaid TV licence fees cannot be included.

What if my situation changes during the 12 months?
You have to tell the Official Receiver, through your adviser. A DRO can be extended in some cases. If you come into money or your income rises, do not sit on it. Hiding a change is the quickest way to turn a clean write-off into trouble.

Will I lose my car?
In a DRO, one vehicle worth under £4,000 does not count against you. In bankruptcy, a car is usually sold unless the official receiver agrees you need it for work or basic home needs. A car on finance cannot be treated as exempt.

Can bailiffs or debt collectors still contact me?
For debts included in the order, creditors cannot chase you or take action without the court first giving permission. They can still pursue anything the order does not cover, and secured debts stay secured. Our rights guide covers what collectors can and cannot do.

Sources and when we checked

Checked on 3 November 2026. England and Wales DRO limits, fee and restrictions: GOV.UK, Getting a debt relief order (first published 25 April 2023, limits raised June 2024) and Insolvency Service technical guidance, chapter 60 (updated 13 October 2026). Bankruptcy fee, length, income payments, home, car, pension and credit file: GOV.UK, Guide to bankruptcy (updated 9 January 2025). Northern Ireland: Department for the Economy, debt relief orders and Advice NI on the July 2024 changes. Breathing space and the wider DRO process: National Debtline. Rules change, so confirm the figures with your adviser before you apply.