Single person - Bankruptcy/Debt Relief Order Debt solution case study

Summary: Single person - Bankruptcy/Debt Relief Order - this article examines the circumstances that might lead a person to look towards bankruptcy as a debt solution.


Greta had accumulated debts at University and beyond. She had a series of unfortunate experiences job-wise and gaps in between periods of employment meant that the debts had continued to escalate. Now in her late 20's she continued to find the ideal job elusive.

Debt Relief Orders

Bankruptcy had always been a possible option for Greta, but the sizeable court fee plus the severity of filling in a stack of forms, appearing before someone in the County Court and the possibility of the bankruptcy somehow becoming public knowledge had put her off. She had never heard of a Debt Relief Order (DRO) until a friend had mentioned. A form of bankruptcy, a DRO was meant to be easier and cheaper for those who met the qualifications necessary. Less than £50/mth available income was not hard to demonstrate with Greta on benefits. Assets by way of property or a vehicle remained a distant dream. But.... total debts had to be under £15,000 and those days had passed several years ago.


Summoning up courage she never knew she had, Greta spilled the beans to her mother who had always suspected that Greta had to be in serious debt. With no assets, no available income and no fee to pay the court, Greta could only ask for help. She completed the forms (she knew her University education would come in useful eventually!), accepted the offer of a £600 gift from mum to cover the reduced fee (as she was on benefits) and met the Official Receiver in the local County Court.

The bankruptcy stigma

Slightly to her surprise, Greta found that the experience was not as bad as she feared. No one was judgemental. She could still access her benefits. It was explained that she would be discharged from her bankruptcy all being well, after 6 months. As chance would have it, 6 months in, the near-ideal job arrived. She was told that she could afford to make payments into her bankruptcy now, and a payment order for 3 years was set up. She didn't mind. It was always her intention to pay back what she could, and for the first time in a long time she had a future.

The above is provided as information only. does not provide debt advice. You must always seek professional advice before taking any action to resolve your debts.