At the point when a debt relief order (DRO) is made, you enter a DRO period, which is regularly a year. You may hear this called the moratorium period. During this time there are sure limitations on what you can do. 

This article clarifies what happens when a debt relief order (DRO) is made.

What is a debt relief order (DRO) and why would you need one

A debt relief order (DRO) is one approach to manage your debts on the off chance that you: 

  • owe £20 000 or less 
  • try not to claim your own home 
  • try not to have different resources or things of significant worth 
  • try not to have a lot of extra pay 
  • you’ve lived, had a property, or worked in England or Wales over the most recent 3 years.

Is debt relief order a good idea?

You don’t need to make payments towards most sorts of debt remembered for your DRO and your creditors can’t compel you to take care of the debts. A DRO ends after 12 months except in the case that your circumstance improves. 

At the end of the DRO the greater part of your debts will be discounted. 

You’ll have to address an extraordinary DRO counselor who will help you fill in an application to the official collector. The counselor can’t charge you for their time yet there’s a £90 expense to make a DRO application. 

Notification of the end of the DRO period

You won’t get any official notification or correspondence to disclose to you that the DRO period has finished. 

In the event that you can’t recollect when your DRO closes, you can check your entrance in the Insolvency Service’s register. This will show the end date of the DRO period.

In the case you would want proof that your DRO has finished

Debt Relief Order What Happens After a Year

On the off chance that you need to have the option to demonstrate that your DRO has finished you can print off a duplicate of your entrance in the Insolvency Service register, which will show the end date of the DRO period. 

You have three months to print off your duplicate of the section after the DRO has finished. After this time, your entrance will be eliminated.

What happens if your Creditor Doesn’t Accept that your DRO Has Ended?

On the off chance that a bank attempts to gather a debt that was recorded in your DRO after the DRO period has finished, you can challenge them and don’t need to pay. Approach your DRO debt adviser or the credit reference agencies for exhortation about this. 

The bank can very well not acknowledge or accept that your DRO has finished. In this case, send them a duplicate of your entrance from the Insolvency Register, in the event that you have one. 

In the event that you don’t have a duplicate and it is past the point where it is possible to print it off, request that your creditors contact the Insolvency Service s DRO Team. 

The financial conduct authority will have the option to affirm to your bank that your DRO has finished and that they can’t make any move against you over it.

When are Creditors Permitted to Reach You? 

While your creditors for debts recorded in your DRO can’t for the most part make a move against you during the DRO period, there are a few circumstances where they may keep reaching you. These include: 

  • to give you data about your authorised and regulated record 
  • to observe the guidelines of the Consumer Credit Act, which may expect them to send you certain takes note  
  • to pursue payments for debts excluded from the DRO 
  • where your landowner needs to go to an installment course of action with you, or is making a move to re-have your home since you’re behind on your lease. 

Which Creditors are Included in your DRO? 

All the creditors that are recorded in your DRO are lawfully limited by it. In case you’re actually being reached by creditors who are requesting that you pay debts in your DRO, send them a duplicate of the DRO. 

Creditors excluded from the DRO 

On the off chance that you have debts with creditors that are excluded from the DRO, they can in any case reach you and pursue you for that debt. 

It is a good idea to consider how you will manage these debts before you apply for a DRO, in spite of the fact that this is something your DRO counselor should take a gander at with you.


Can the debt relief orders period be ended early?

A debt relief order period can’t be ended early, unless the official receiver stops the DRO because you’ve broken the rules or have come into money.

When can I be in danger of losing my home?

In the event that your unfulfilled obligations are listed in your DRO, money for which you’ve made an installment plan with bailiffs, or recruit buy debt, you could be in danger of losing your home or the products, so the standards are marginally extraordinary. 

How long does a debt relief order stay on credit file?

Yet, if certain advice or debt solutions are not followed, then the creditor, considering if you owe money can make a move against you. This is also conditional to your position of money and credit.

Will a debt relief order affect my job?

In the event that the official beneficiary or company believes that you exacerbated your debt before you applied for a debt relief order (DRO).Or if you’ve acted in a manner which is contrary to the guidelines of the experience and services of the DRO.

How to improve your credit rating after a DRO

In the event that you have a debt relief order (DRO) or have had one previously, it will influence your credit rating, credit record and credit score. 

Considering income, circumstances of the credit cards, experian credit score, credit report, credit file and credit record, this could ideally mean that it’s harder to get credit anytime in the future.

Wrapping it Up

This guide was meant to help you learn more about what a DRO is and what happens once it ends. A DRO can be a very complicated plan if you don’t know what you’re doing.

If you need more debt advice, feel free to reach out.

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more