Debt relief order

Check the current Northern Ireland rules

The tests cover total debts, available assets, disposable income, connection to Northern Ireland and previous insolvency history. A DRO is generally unsuitable for homeowners because of its asset conditions. An intermediary checks what property and income must be counted and what the rules disregard.

Some older general debt webpages still quote superseded Northern Ireland limits. Use the dedicated Department for the Economy DRO guidance linked here for the current criteria, and have the intermediary confirm eligibility before relying on a particular figure.

Application and included debts

The intermediary helps assemble accurate information about creditors, income, essential spending and property. The Insolvency Service decides the application. It is important to identify all qualifying liabilities, including disputed or jointly owed debts, rather than assuming every balance on a credit report is complete.

Only the specified qualifying debts receive the order’s treatment. Certain liabilities are excluded and ongoing commitments must still be met. A joint borrower’s liability and a creditor’s security are separate from the individual’s relief.

During the order

Creditors named in the order face restrictions on recovery for covered debts, subject to the legislation and court permission. The individual must cooperate and report relevant changes. A significant improvement in circumstances or inaccurate information can cause the order to be reconsidered.

Restrictions affect matters such as obtaining credit without disclosure, company involvement and trading. A debt relief restrictions order or undertaking can impose longer conduct restrictions where the required grounds exist. That issue is different from whether particular debts are released.

Release and remaining obligations

At the usual end of the 12-month period, the included qualifying debts are discharged if the order has remained effective and the conditions are satisfied. A revoked order can leave debts to be dealt with again.

Register and credit-file consequences do not vanish on the day the normal period ends. Keep the order, debt list and evidence of changes reported. Never infer from release of one borrower that all other people liable for the same debt have also been released.

The process, at a glance

1. Intermediary assessment. Check debt, asset, income, connection and insolvency-history conditions.Process stage — practical timing varies
2. Application prepared. Identify all liabilities, household income, expenditure and property.Process stage — practical timing varies
3. Order made. The order identifies debts covered by the statutory protection.Process stage — practical timing varies
4. Report material changes. Continue cooperation and comply with restrictions.Process stage — practical timing varies
5. Normal debt release. Specified qualifying debts are released if the effective order reaches its usual conclusion.Statutory milestone — check its trigger and exceptions