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Debt Relief Order restrictions

A DRO comes with legal limits for the 12 months it runs. Most people are not affected day to day, but breaking them is an offence.

Applies to: England & Wales

Written by The My Debt Cleared editorial teamLast reviewed 18 October 2026Next review 18 April 2027Jurisdiction England & WalesEditorial policy
While a Debt Relief Order is in force you must not borrow more than £500 without telling the lender about the DRO, act as a company director without court permission, or run a business under a different name without telling people the name your DRO is in. They normally end after 12 months, but a restrictions order can extend them to 15 years.

What to do now

  1. Read your notice of the order for the exact terms.
  2. Tell any lender about the DRO before borrowing more than £500.
  3. If you are a director, talk to an adviser before applying.

The restrictions

  • Borrowing. You must not get credit of more than £500, alone or jointly, without telling the lender you have a DRO. This includes buy now pay later and goods on credit.
  • Company director. You cannot act as a director, or be involved in forming, promoting or managing a limited company, without the court’s permission.
  • Business names. If you run a business under a name other than the one the DRO is in, you must tell everyone you deal with the name the DRO is in.
  • Bank accounts. GOV.UK says to tell a bank or building society about the DRO when you open an account.

Breaking a restriction is a criminal offence and can lead to prosecution. GOV.UK also says the order can be extended if you do not follow the restrictions.

What is not restricted

  • Working as an employee, in most jobs. Some employers and professions have their own rules, so check your contract or regulator.
  • Being self-employed, as long as you follow the business name rule and the debt limits still fit.
  • Travelling abroad, renting a home and keeping a basic bank account.

Debt Relief Restrictions Orders

If the official receiver thinks you acted dishonestly or recklessly before or during the DRO — for example by running up debts you knew you could not repay, giving away assets, or hiding information — you may be asked to agree a Debt Relief Restrictions Undertaking, or the court may make a Debt Relief Restrictions Order. Either one continues the restrictions for between two and 15 years and is shown on the public register.

Other effects to weigh

  • The DRO is on your credit file for six years and on the Individual Insolvency Register until three months after it ends, so credit is likely to be harder or more expensive for some time.
  • You cannot apply for another DRO for six years.
  • Some tenancy, mortgage and job checks look at insolvency records.

How this compares

Bankruptcy carries the same core restrictions, usually for 12 months, plus the loss of assets to a trustee. An IVA has no statutory borrowing or director restrictions, though its terms usually limit new credit. A DMP has no legal restrictions at all, but also no protection.

This page explains how the solution works. It is not a recommendation, and it cannot tell you whether it suits you — a free, regulated debt adviser can look at your full situation.

You can get free, impartial debt advice

You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.

Common questions

Can I borrow money during a DRO?

Only up to £500 without telling the lender. To borrow more than that, you must tell the lender you have a DRO.

Can I be a company director with a DRO?

Not without the court's permission while the DRO is in force. Talk to an adviser before applying if you are a director.

How long do DRO restrictions last?

Usually 12 months, until the DRO ends. If a Debt Relief Restrictions Order or Undertaking is made, they can last between two and 15 years.

Debt Relief OrdersBankruptcy restrictionsWhat happens after a DRODRO vs bankruptcy
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