Bankruptcies and DROs

[Louis Balfour]

We have a property portfolio. During COVID, we supported all our tenants in respect of rent and energy costs.

A number of tenants claimed Universal Credit, did not pass it on and then once lockdowns ended they upped and left. Several owe £5k or more, which is the threshold for bankruptcy.

Having done a bit of research, it appears that debtors can now write off their debts with a Debt Relief Order.

Can anyone with experience in chasing bad debt advise on this please? If we pursue there people, can they just let us drag them to court, obtain a DRO, not pay us and just have a ropey credit rating for six years? No further consequences?

[caziques]

Only chase a bad debt if you can afford to lose more money and you want some sort of personal satisfaction. Plus you have lots of spare time to waste.