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How long does a debt relief order take to process?

How long does a debt relief order take to process?

Debt Relief Order (DRO) is an effective solution for those who have debts of less than £30,000 and are unable to make repayments – but do not have any sizeable assets. It’s an alternative to full bankruptcy, if you do not own your home.

How long does the process take?

Once a DRO is approved, it will last for 12 months, and you are entered into a period of time called the moratorium. This may sound complicated, but it simply means certain restrictions are now placed upon you, while the DRO is being processed.

What are the restrictions of a Debt Relief Order?

In the moratorium period, you cannot:

  • apply for credit of £500 or more without letting the lender know that you have taken on a Debt Relief Order.
  • continue running a business using a different name to the one you had when your DRO began.
  • act as the director of a company without permission from the court.
  • be involved with setting up, managing or promoting a limited company without permission from the court.
  • add any new debts or debts that you’ve forgotten about once the DRO is made.

It’s worth noting that in the unlikely event you go against your restrictions, you could be committing an offence, and the Official Receiver dealing with your case can request that the restriction period be increased for up to 15 years.

If you receive notice that restrictions are being increased against you, these can be appealed if you have evidence that you have done nothing wrong.

Will I need to make payments to the companies I owe money to?

You will be expected to continue making certain repayments while your DRO is processed. These include your everyday household expenses, such as your rent, council tax, utility bills and water charges.

If you have any debts that aren’t included in your DRO, then you will also need to continue repaying these to make sure you don’t fall behind and get into further financial trouble. Debts that aren’t included in a DRO are called excluded debts. These include things such as CSA arrears or student loans.

A DRO also won’t stop bailiffs from taking control of your possessions via a controlled goods agreement if it was in place when the DRO was approved. If this happens and you wish to have them returned to you, you may have to repay what you owe.  If you have rent arrears, a DRO will include these as part of the total amount you owe. In a DRO, your landlord can take further action against you. So, you may have to continue paying towards your rent arrears to stay in your home.

Once your DRO is processed and complete, you won’t have to pay off the debts that were included, and you’ll be free to make a fresh start. If the debt was a fraudulent debt, you will again be liable to repay that debt until it is fully paid off.

What happens when a DRO is made?

Once you have applied for a DRO and it has been approved, a number of things will happen to begin the process. You’ll receive written confirmation from the Official Receiver that your Debt Relief Order has been approved.

Here is a quick breakdown of what happens next:

  • First, you will be sent a notice the Order has been made, and you will be made aware of what you need to do. All restrictions and requirements you need to comply with will also be outlined at this stage.
  • The companies you owe money to will be sent notice that you have entered into a DRO.
  • The details of your DRO will be added to the Insolvency Register

What happens if I come into money while my DRO is being processed?

If your circumstances change, you must first notify the Official Receiver who is dealing with your DRO.

What is classed as a change in circumstances?

  • If you receive a large windfall – such as inheritance money or even a bonus at work.
  • If you receive or sell any large assets left to you in a will.
  • If you realise something is wrong with your application or there is missing information.
  • Your income increases, and you change employment or move address.

These things can make a big difference to your DRO which is why it’s important that you notify the Insolvency Service immediately. If you fail to tell your Official Receiver of any changes, you are committing an offence and could see restrictions placed upon you for longer, a fine or even imprisonment in more serious cases.

It’s important you fully understand the effects a DRO can have on you and your financial situation. You can find out more about DROs via our dedicated section on the website

Our expert team are also on hand to answer any questions you may have to ensure you fully understand the debt solution and what it involves.


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