FAQs

Debt solutions

Our Debt Solution FAQs address the most common questions regarding our debt solutions, assisting you in understanding how they function and whether one is suitable for you.

What steps can I take to rebuild my credit score after my Debt Relief Order?

Start small. Using a credit card with low interest or a small overdraft carefully can help prove you can manage money responsibly. Only take on what you know you can afford. Remember, you’ll need to tell a lender about your past DRO if they ask.

What if a company asks for money after my DRO ends?
Don’t pay them. Send them your printed proof from the Insolvency Register. If it’s too late to get a copy, ask them to contact the Insolvency Service’s DRO team directly. They can confirm your debts are cleared.
What happens to my commercial lease?

You will need to check your lease agreement carefully. Some leases have specific rules about what happens if you enter a debt solution. Your advisor will help you look at this before you make any decisions.

Do I need to tell my clients?

Formal debt solutions, such as an IVA, are added to the public insolvency register. For more information, look at our full guide to the insolvency register. But you do not have to directly tell your clients. We can help you manage your payments, so your supply chain keeps running smoothly without causing any alarm.

Can I keep my business bank account?

Yes, you can usually keep your account if you do not owe money to that specific bank. However, starting a formal debt solution will lower your credit score. This can make it hard to open new business accounts in the future

What if my bankruptcy has ended but I have no proof?

You can ask the Insolvency Service for a free letter to prove you are no longer bankrupt. It is a good idea to keep this letter safe. You can show it to the people you owed money to if they ever ask you for payments in the future

How do I know my bankruptcy has ended?
If everything goes to plan, your bankruptcy will end automatically. You might not get a letter to tell you this has happened. If you are unsure, you can look at the public Insolvency Register online to get an idea of when it finishes.
What happens if I can’t keep up with the payments agreed?
If you struggle to make payments, contact us. We can help you explore alternative solutions that might better suit your situation.
Will a Repayment Arrangement affect my credit rating?

If you pay less than the original agreed amount, creditors may report this on your credit file for up to six years. You can ask your creditors how they will record it.

How long does a Repayment Arrangement last?
It depends on how much you owe and your monthly payments. It will continue until all debts are paid off, which may take months or years.