Process

Find a DRO Adviser: You can only apply for a DRO through a specialist DRO adviser, also called an ‘approved intermediary’. This is usually a skilled debt adviser who has been given permission to complete the forms and give advice on DROs. They will check that you’re eligible to apply and that a DRO is right for you.

You can find a DRO adviser at most local Citizens Advice. Contact your nearest Citizens Advice. 

You can also find a DRO adviser through other approved organisations, known as ‘competent authorities’. Check which organisations are approved on GOV.UK.

Work with the DRO Adviser to make your Application: Your DRO adviser will help you work out whether you’re eligible to apply for a DRO. They’ll also look at whether it’s right for you – for example, how it might affect your credit rating, lifestyle and work.

If you decide to go ahead, you’ll need to work with your DRO adviser to fill in your application. This will include working out your income and outgoings, and adding up all your debts and assets. Your assets are any savings you have or things of value you own.

It’s important to be honest and give your DRO adviser all the information you have. If you apply but you’re not eligible, you won’t get your application fee back.

The application is sent to an official receiver at the Insolvency Service. It’s their job to make a decision about the application and deal with your DRO if it goes ahead. If the official receiver finds out you’ve been dishonest in your application, the restrictions under a DRO could be made to last up to 15 years. In serious cases of dishonesty you could be taken to court.

Pay the Fee: You have to pay a fee of £90 to apply for a DRO. You must pay this in cash at a post office or Payzone outlet. You can pay it in one go or by instalments. You won’t get your money back if your application is turned down, so it’s important to make sure you’re eligible to apply for a DRO before you pay the fee.

You can find your nearest post office at www.postoffice.co.uk.

You can find your nearest Payzone outlet at www.payzone.co.uk.

There are some charities and trusts that might be able to help with paying the DRO fee – your DRO adviser can find out more information about this.

The Official Receiver makes a Decision: When you’ve paid your fee and your application is received, the official receiver will make one of the following decisions:

• Make the debt relief order if you’re eligible and your application has been filled in correctly;
• Defer the order if they need to find out more information to make a decision or
• Refuse the order if you’re not eligible or you’ve given false information.

After you’ve applied for a DRO, you must co-operate with the official receiver. This means answering their questions and providing any further information they might ask for. It’s important that you let the official receiver know if your income goes up or you receive a lump sum, for example a tax refund or backdated benefit award.

If your application is turned down, you’ll be given written reasons why it’s been refused. You might be able to challenge the decision.

You can check if a DRO is right for you and apply for one here.

Effective date

The effective date of the DRO is the date the Official Receiver approves your application.

Effect of DRO

If your DRO application is successful, the official receiver will:

• Send you a notice to say that the DRO has been made and outlining all the duties and restrictions that will be imposed on you while it is in force;
• Send a notice of the DRO to each of the creditors owed a debt that the DRO covers and
• Add an entry to the Electronic Individual Insolvency Register (EIIR) showing your details and the fact that a DRO has been made against you.

If having your name on the EIIR could lead to violence against you or a member of your household, you can ask the court to order that your name doesn’t appear on the register.

The DRO period normally lasts for a year. During the period of your DRO you don’t need to make any payments towards the debts listed in the order. The creditors of those debts won’t be able to take any action against you.

There are some exceptions to this, which are:

• payments to your landlord for rent arrears. Having a DRO won’t stop them from taking possession action against you, so if you want to stay in the property you may need to continue paying any arrears after the DRO is made
• payments to bailiffs, also called enforcement agents, who have taken control of your belongings through a controlled goods agreement. Having a DRO won’t stop them from taking your belongings and selling them, so if you want to keep them you will have to keep paying the debt.

Certain debts are not included in your DRO including:

• Child maintenance;
• Student loans;
• Budgeting and Crisis Loans from The Social Fund;
• Debts secured against an asset you own;
• Damages or fines a court has ordered you to pay;
• Unpaid TV license fees and
• Any debts that you incur after the DRO is granted.

Conclusion of the DRO

At the end of your DRO, the scheduled qualifying debts listed in it will be discharged and you won’t have to pay them. If you obtained any of your debts through fraud, you will have to restart paying them when the DRO has ended.

You can check the date your DRO ended online using the Individual Insolvency Register, when your DRO (moratorium period) has finished, keep your order paperwork.

Advantages of a DRO

Disadvantages of a DRO

• You can only qualify for a DRO if you owe less than £20,000 and live in either England, Wales or Northern Ireland;
• You’ll need to pay the Insolvency Service a one-off, non-refundable fee of £90. If you qualify, our specialist team can help you apply;
• You won’t be eligible if you’re a homeowner and
• A DRO will appear on a public register and will affect your credit report negatively.