Once you have a Debt Relief Order (DRO)
Information for people who have a Debt Relief Order about what happens after.
Applies to England and Wales
Once a DRO has been approved
Once a DRO has been approved, it normally lasts 12 months. This is called the DRO period.
We will inform you and all the creditors listed in your DRO that it has been approved.
During the DRO period you stop making payments towards the debts and interest listed in the DRO.
After the 12 months, you will then not have to pay these debts anymore.
After getting your DRO approval, you will not receive any further communication from the Insolvency Service. We will only contact you to ask for additional information if your circumstances change.
You will not be able to apply for another DRO for 6 years the date your last DRO was approved.
If needed, you will still be able to access other services administered by the Insolvency Service, for example Breathing Space.
If you are in financial difficulty, please speak with your debt adviser.
If you continue to receive demands for payments
The Insolvency Service sends notice of your DRO to all the creditors listed in your application. Once they know about your DRO, your creditors should stop asking you for payment.
If a creditor continues to ask for payment for a debt listed in a DRO, contact them directly and send them a copy of your DRO. You can find your DRO with your DRO notification letter.
You can also tell the creditor to check the Individual Insolvency Register. Your DRO details will be listed here and removed 3 months after your DRO has ended.
If a creditor does not stop demanding payment, use their formal complaints process to ask them to stop. This can include referring them to their regulator.
The Insolvency Service will not submit a complaint on your behalf. We do not have any powers to make a creditor to stop contacting you for repayment.
Creditors may still send you balance statements of any outstanding amount you owe for up to 12-18 months. This is because they are required to by law.
Debt collection agencies
If any of the debts listed in your DRO have been sold to a debt collection agency, the debt collection agency may contact you. If they do, explain that the debt is listed in a DRO and ask them to update their records. You should send them a copy of your DRO.
You can also tell them to check the Individual Insolvency Register. Your DRO details will be listed here and removed 3 months after your DRO has ended.
Making changes to your DRO
If you notice a mistake in your DRO application, such as an incorrect amount or creditor details, contact the Debt Relief Order team.
Include any supporting evidence you have in your email, for example a statement showing the correct amount you owe.
If you do send statements as evidence they need to be statements from the time you made you DRO application. The Debt Relief Order team cannot accept more recent statements as evidence.
If you forgot to include a debt in your DRO, you cannot ask the Debt Relief Order team to add the debt. After a DRO has been approved, no other debts can be added to it.
You will still have to make payments for any debt that is not listed in your DRO. Please speak with your debt adviser if you need further advice about this.
If your circumstances change
A DRO is based on your circumstances at the time you apply. During your DRO period, you must tell the Insolvency Service about any:
- significant change in your finances (for example, you inherit a large sum of money)
- possessions of value you receive, such as property or vehicles
- increase in your earnings or additional income (any increase is often offset by inflation or other increased costs and won’t affect your DRO)
Speak to a debt first adviser before contacting us to understand how any change of circumstances will affect you and if you’ll still be eligible for a DRO.
Cancelling your DRO
The Insolvency Service can cancel your DRO if your financial circumstances change and you no longer meet the eligibility criteria for a DRO.
We can also cancel your DRO if we learn that you were not in fact eligible when you applied or at any time during the DRO period. We can do this even after your DRO has ended.
If a DRO is cancelled
If your DRO is cancelled (revoked) by the Insolvency Service or the court, you will have to start making payments for debts that were listed in it. You will also have to pay any interest that accrued during your DRO.
Your creditors can start contacting you for payment again and can add penalties to what you owe.
This is the case even after your DRO has ended. Any debts that were in your DRO will no longer be cleared and you will need to pay them.
If your DRO is cancelled, you might want to get debt advice to look at alternative solutions for dealing with your debts: www.gov.uk/debt-advice.
Joint debts / guarantors
A creditor can still recover a debt from a guarantor or joint debt holder.
For example, if you have a taken out a loan with another person – they will be liable for the whole amount owed if you cannot pay it back.
If the guarantor or joint debt holder is unable to repay the debt, they may wish to get debt advice.
Bank accounts
After a DRO has been approved, your bank may stop letting you use your current bank account. If this happens, speak to your debt adviser to find out what options are available. Your debt adviser may be able to help you set up a new bank account which is not related to any of your debts.
The Insolvency Service will never ask a bank to stop providing you banking services in relation to a DRO. If needed, we are able to write to them and ask they unblock or let you have access to your account.
At the end of your DRO period
Your DRO ends automatically at the end of your DRO period,
All debts listed in your DRO, including interest penalties and charges are discharged – which means you will not have to pay them.
If any of your debts are a result of fraud, they will not be discharged. You will still have to pay these. In this situation, seek independent legal advice.
You should not need proof that your DRO has ended. If you are requested to provide this for any reason, contact the Debt Relief Order team.
Issues with your credit reference file
Your DRO will stay on your credit file for 6 years, and so will the debts listed in it. During this time, debts listed in a DRO won’t show as paid/settled on your credit file.
You should check if the entries have been removed after 6 years.
The Insolvency Service is not able to correct any information on your credit file.
You must contact the credit reference agency to resolve any issues.
The 3 main UK credit agencies are TransUnion, Equifax and Experian.
Get more information about credit reference files.