Debt relief restrictions undertaking (DRRU) meaning

An agreement by a debtor subject to a Debt Relief Order (DRO) to be bound, for a set period, by the same conduct restrictions a court could impose under a Debt Relief Restrictions Order (DRRO), given to avoid court proceedings. It is a statutory mechanism under the DRO regime. In England and Wales it takes effect when the debtor gives an undertaking accepted by the Secretary of State (normally via the Official Receiver). In Northern Ireland, acceptance is by the Department for the Economy. The restrictions mirror those on an undischarged bankrupt, typically including: not obtaining credit over £500 without disclosure of the DRRU; not acting as, or being involved in the promotion, formation or management of, a company without court permission; and not trading under a different name without disclosure. A DRRU usually lasts between two and fifteen years and is used where the debtor’s conduct before or during the DRO is culpable (for example, reckless borrowing, dishonesty or failure to co‑operate). It protects the public and creditors while avoiding the cost and delay of a DRRO application. Usage is consistent in England and Wales and Northern Ireland. The term is not used in Scotland or Ireland, which have different low‑income...