What happens if I decide to do a DRO?

debt relief order

A DRO is not the end – it’s a new beginning. You can put a stressful situation behind you while you look forward to a more stable financial future.

Applications for a DRO are made via an approved intermediary.

The approved intermediary will help you understand if you meet the application criteria and then submit your application once a £90 fee is paid.

Discharge after 12 months

After 12 months, as long as you continue to meet the criteria, you will be released and your debts will be written off. No monthly payments are made in a DRO.

 
 

DRO Benefits

A definite outcome

Once the DRO is complete, you’ll be debt free – this is guaranteed. All included debts are written off.*

No monthly payments

Once your application is approved all creditors must accept it and that no payments will be made.

Creditor protection

Creditors can’t take legal action against you.

Less stigma as it becomes more commonplace

Many people per week enter a DRO in England and Wales.

*Some debts cannot be included in a DRO, such as court fines, child maintenance arrears and secured debts.

DRO Considerations

Not private

Your DRO will be recorded on the Insolvency Register which is publicly available.

Not available to everyone

You won’t be able to have a DRO if you own your house, even if it has no equity.

Could affect your employment

A DRO could affect your employment or future employment if you work in a licensed role such as a publican, solicitor, financial advisor etc. You also cannot freely act as director of a company.

Possible extended restrictions

You may have a ‘debt relief restrictions order’ made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly.