How Long Does A Debt Relief Order Take To Process?

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How long does a DRO take?

A DRO normally lasts for 12 months. This time is often called a moratorium. During these 12 months, you must follow specific rules. Once the time is up, the debts included in your order are cleared.

It’s important to know that a DRO stays on your credit report for six years from the date it’s approved. Future lenders will be able to see this.

What happens when a DRO is approved?

Once your application is approved, a few things happen to start the process:

You’ll get a letter from the Official Receiver confirming your order is approved.
This letter explains the rules you’ll need to follow.
The companies you owe money to are told about your situation.
Your details go on the Insolvency Register and your credit report.

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What are the restrictions of a DRO?

During the first 12 months, there are strict rules you must follow. You can’t:

Borrow more than £500 without telling the lender you’re in a DRO.
Change your business name without telling everyone you work with.
Act as the Director of a Limited company without permission from the court.
Set up, manage or promote a Limited company without court permission.
Add any new or forgotten debts to your order.

Breaking these rules are serious. You could face a fine, or have your restrictions extended by up to 15 years.

If you receive a notice about extended rules, you can appeal if you’ve got proof you’ve done nothing wrong.

Do I still need to pay my bills?

Yes. You must keep paying your everyday household bills while your DRO is processed and after it’s approved. This includes rent, council tax and utility bills.

While waiting for approval, we suggest paying what you can afford to the companies you owe to show you want to cooperate. A token payment of £1 is a good start. If you can’t afford anything, please speak to them directly to let them know.

Some debts aren’t included in a DRO. You must keep paying:

Child support arrears
Student loans
Debts linked to fraud

A DRO won’t stop bailiffs from taking your belongings if a controlled goods agreement was already in place. Also, if you’ve got rent arrears, your landlord can still take action. You might need to keep paying these arrears to stay in your home.

What if my situation changes?

You must tell your Official Receiver right away if your life changes. This includes:

Getting a large amount of money, like a bonus or inheritance.
Receiving or selling large items left to you in a will.
Getting a pay rise, changing jobs or moving house.
Noticing missing information or mistakes on your application.

These things can make a big difference. If you don’t report these changes, you’re committing an offence. This could lead to a fine, prison or longer restrictions.

What happens when my DRO ends?

You won’t get a letter to say your DRO has finished. You can check this by searching your name and address on the Insolvency Register.

We highly recommend printing a copy of your listing as proof that your order has ended. You’ve only got three months to print this before it’s taken off the register.

Not sure if a DRO is right for you?

Get free debt advice online or call 0800 316 1833 to speak to one of our experts. We’ll explain the solutions available, check what you may be eligible for and help you choose the option that best fits your situation.

See if an DRO is right for me

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FAQs

What steps can I take to rebuild my credit score after my Debt Relief Order?

Start small. Using a credit card with low interest or a small overdraft carefully can help prove you can manage money responsibly. Only take on what you know you can afford. Remember, you’ll need to tell a lender about your past DRO if they ask.

What if a company asks for money after my DRO ends?

Don’t pay them. Send them your printed proof from the Insolvency Register. If it’s too late to get a copy, ask them to contact the Insolvency Service’s DRO team directly. They can confirm your debts are cleared.

Do I need to stick to a budget in a DRO?

Yes, our team will work with you to create a budget based on your current circumstances.

You can use this to help you complete your DRO application.

Your budget must be realistic and sustainable, and cover all essential household living costs.

The DRO intermediary will discuss with you, prior to submission, any areas of your essential living costs that the Official Receiver may consider high or low to ensure that your budget is realistic.

The Official Receiver has budget guidelines they consider when approving or declining a DRO application.

If your situation changes after you enter a DRO, including your income or expenses, you’ll need to notify the Official Receiver as soon as possible.

How will my credit score be affected by a DRO?

A Debt Relief Order (DRO) will appear on your credit file for six years from the date it’s approved. This means you could find it harder to borrow or be offered higher interest rates if you apply for credit cards, loans, mortgages or other credit in future.

Can a Debt Relief Order stop bailiffs?

Yes, a Debt Relief Order (DRO) can stop bailiffs, but only from taking control of goods for debts included in the DRO. However, if bailiffs have already taken control of goods, or if there’s a controlled goods agreement (CGA) in place, a DRO may not stop them. It’s important to discuss your situation with your debt advisor to ensure all steps are taken to protect you.

How long does a Debt Relief Order take to process?