Debt relief order

Eligibility needs a full assessment

Eligibility depends on debt, assets, disposable income, residence or business connections and previous insolvency history. Home ownership and other assets can rule the route out. The approved intermediary must check the current limits and the detailed rules, including items disregarded in calculating asset values.

A small monthly surplus does not by itself establish eligibility. All debts and property must be identified, including jointly held interests, disputed liabilities and money owed to the individual. This guide links directly to the current official criteria rather than embedding a potentially ageing eligibility calculator.

Which debts and protections?

The application lists the qualifying debts that the order will cover. During the DRO period, creditors’ remedies for those debts are restricted, subject to statutory exceptions and court permission. Excluded liabilities and ongoing household bills still need attention.

A DRO is not a guarantee that a tenancy or secured property will be retained. In particular, restrictions on recovering a listed rent debt do not necessarily prevent possession proceedings. Liability of a co-borrower or guarantor is a separate matter.

During the DRO period

The individual must cooperate and report material changes, including an improvement in income or assets. The official receiver may investigate, amend or revoke an order if the conditions are not met. Revocation can restore the need to deal with the debts.

Restrictions apply to credit disclosure, company management and business naming. Dishonest or blameworthy conduct can lead to restrictions extending beyond the usual DRO period. A restriction order is not the same thing as extending the period before covered debts are released.

At the end

The normal period is 12 months. If the order continues to its ordinary conclusion, the listed qualifying debts are discharged. There is not necessarily a completion letter or a fresh notification to every creditor.

A DRO has public-register and credit-record consequences. Keep the original order and an accurate record of the debts included. New borrowing, omitted liabilities and excluded debts should never be assumed to have disappeared with the listed debts.

The process, at a glance

1. Meet an approved intermediary. Check current eligibility and alternatives using a complete financial statement.Process stage — practical timing varies
2. Prepare and submit. List debts and disclose income, assets and previous insolvency history.Process stage — practical timing varies
3. Official receiver decides. The order identifies the debts included and starts the statutory period.Process stage — practical timing varies
4. Report changes. Comply with restrictions and tell the official receiver about relevant changes.Process stage — practical timing varies
5. Normal debt discharge. Listed qualifying debts are released if the order has not been revoked and reaches its ordinary conclusion.Statutory milestone — check its trigger and exceptions