Debt Relief Order Archives

After the debt relief order finishes…

Once the Debt Relief Order period is finished, all the debts listed on your order will be written off and you will not have to pay them. Any debts you have which are not listed on your order will remain unpaid and you will need to make arrangements to pay them. You can only apply for a Debt Relief Order once...read more →

Changes to your circumstances

If there are any changes to your circumstances during the period of your debt relief order, you must remember to inform the Official Receiver. Changes include things such as: information which you have given but realise is incorrect or has been missed out when you applied for the DRO any increase to your income any additional money or valuables acquired...read more →

Things you must not do before you apply and during a debt relief order

Before you apply for a debt relief order and during the debt relief order, there are certain things you must not do. These include: hiding, destroying or faking any information, books or documents up to one year before you apply for a DRO and during the length of the DRO failing to tell the Official Receiver of any change in...read more →

How to apply for a debt relief order

Only an approved third party or an intermediary can apply online for a debt relief order on your behalf. This is usually someone who is a skilled debt adviser and has been given permission to complete the necessary forms and give advice - they are an authorised adviser. Debt relief orders are granted by the Insolvency Service and administered by...read more →

Who cannot get a debt relief order

There are some things which may prevent you from getting a debt relief order. These include: if you are currently bankrupt if you have an Individual Voluntary Arrangement (IVA) or are applying for an IVA if the companies you owe money to (your creditors) have applied to make you bankrupt but the hearing hasn’t taken place. (If your creditors agree...read more →

Your assets

Another condition of the debt relief order is that you don’t own things of value (your assets) worth more than £300. When you add up the value of your assets, there are some things you don’t need to include such as: household equipment and item ie furniture, bedding and clothing items like books, tools or equipment used for your job your motor...read more →

Spare income of £50 or less

To apply for a debt relief order, you need to meet certain conditions. One of these is that the amount of spare income you have each month – that’s after all your household outgoings – is £50 or less. Your adviser will be able to help you take into account all the money coming into your household including things like your...read more →

What is a qualifying debt?

Not all debts can be included in a debt relief order. Only certain types of debts qualify such as: credit cards, overdrafts and loans rent, utilities, telephone and council tax benefit overpayments and social fund loans hire purchase or conditional sale agreements buy now-pay later agreements. (Once you have a DRO you will not be able to pay for goods...read more →

Who can apply for a debt relief order?

Your authorized adviser will check your details to see if you meet the conditions to apply for a DRO. These are: you have qualifying debts of £15,000 or less (see below for what counts as a qualifying debt) you have £50 or less a month of spare income after paying all your normal household bills you own things of value...read more →

What is a debt relief order?

A debt relief order (DRO) is an order granted by the Insolvency Service in cases where you can’t afford to pay off debts. With a debt relief order, none of the companies to which you owe money (your creditors) can take action against you to get their money back. This lasts for as long as you have the DRO, which is usually...read more →