The start of a new fast track bankruptcy regime has been hampered by regulations that were added at the last moment.

The problem is that just before launch, the Insolvency Service announced that people with pension savings would not qualify for a Debt Relief Order. This has meant that in the first three months the number of DRO’s has barely reached 2,000 against the forecasts of between 3,500 and 5,000.

A spokesman for the Citizens Advice Service confirmed that the pensions issue does exclude many people who otherwise would qualify for a DRO rather than a full bankruptcy.

At the moment a person living in England or Wales has to have less than £300 in assets, excluding their car which must be worth less than £1,000. Because pension funds are not readily realisable it was assumed that they could be disregarded but shortly before the DRO’s came into existence, it was announced that they too were to be included.

To qualify for a DRO you have to have not more than £15,000 in debts and your disposable income after tax and household bills must not exceed £50 a month. The DRO is then organised by an official provider and has to receive authorisation from the Official Receiver. The DRO then normally lasts twelve months.