What happens after a Debt Relief Order or DRO?

This Debt Solution is Available for Residents of England, Wales and Northern Ireland

After 12 months from the date it was approved, your DRO will come to an end. These 12 months is referred to as the moratorium period. You won’t be making any payments towards the debts included in your DRO during the moratorium period. Your creditors cannot compel you in paying for the debts as well.

After the moratorium period, if there is no improvement with your circumstances, the debts included in the DRO will be written off.

What can creditors do at the end of DRO?

When a debt relief order ends without any improvements in your situation, your debts under the debt relief order will be written off. This could mean that your creditors cannot take further action to recover the debt.

However, your debt relief order, do not include the debts that you took out after it commenced. Besides, there are also debts that are not included in a DRO.

Can I take out loan or credit after a DRO?

A debt relief order or DRO will remain in your credit for six years, this can make it hard for you to take out credit or loan. Potential creditor or lender will certainly check your credit file before they approved your loan.

Where will a DRO or debt relief order be registered?

England and Wales

Your DRO is recorded on the Individual Insolvency Register, which is an online database containing all the details about IVAs, DROs and bankruptcies. This can be checked online and once your DRO is approved you’ll be added to the database. The details on your DRO will stay for 3 months after it ends. This is a total of 15 months for your DRO to be visible in the database.

Northern Ireland 

If you live in Northern Ireland, your information is recorded to the DRO Register. This will remain in the register for a total of 15 months whether it’s revoked or completed.

How many times can I apply for a DRO or debt relief order?

After you successfully apply for a DRO, you cannot apply for another one within six years. This also applied if your debt relief order application was cancelled after it was approved.

Advice on Debt and DROs

If you want to consider applying for a DRO or debt relief order, be certain that it suits you. You can call us or use our online debt advice tool to get useful advice on how you deal with your debts. Also, we have debt experts that can help you determine whether a DRO suits you or you’re far better with the other debt solutions.

The Different Debt Management Solutions