Introduction

If you have applied for a Debt Relief Order (DRO), you can use this letter template to ask creditors to hold action while you apply and get a decision. Our letter template is free to download, and we have two versions for individual debtors or people with joint debts. 

Using a DRO should be an effective way to get out of debt. It shouldn’t create more financial worry and stress. Use our letter template and read on for more information on this subject. 

Letter Template

To Whom It May Concern

Regarding Case #: [your case number]* (required

I am writing to inform you that I am setting up a debt relief order.

This process normally takes a few weeks but because of the impact of COVID-19 (Coronavirus), it may take up to three months for the DRO to be set up and approved.

Therefore, please hold action on the above account and freeze interest and/or other charges that are being added.

The Insolvency Service will send you further information when the DRO has been approved.

Thank you for your understanding and I look forward to hearing from you soon.

I look forward to hearing from you.

Yours sincerely


Downloadable Resource

The download links below take you to a Google document template where you can make a copy or save in any document format you like. Note, you may have to login to your Google account.

Download – Single (for one person)
Download – Joint (for couples)

What is a Debt Relief Order?

A Debt Relief Order is one of many debt solutions available. It is for debtors with a low income and who do not own a home or expensive assets. It can help with combined debts up to a value of £20,000. 

The Debt Relief Order will prevent creditors from requesting payments for one year. If your financial circumstances have not improved during the 12 months, your debt can be written off.  This is why it is often compared as a small-scale bankruptcy. 

How long does it take for a Debt Relief Order to be approved?

In normal circumstances, a DRO application will be reviewed and decided on within ten working days. However, recent applications have been held up due to the COVID pandemic and remote working. You might need to wait as long as two months to get a decision in 2021. Your application will be decided on by the Official Receiver working at the Insolvency Office. 

Why would a DRO be rejected?

If you meet the Debt Relief Order criteria, there would be no reason to reject your application. The three common reasons for rejection are:

  1. The applicant has an asset worth more than £1,000 (excluding a vehicle) 
  2. The applicant has more than £50 of disposable income each month
  3. Your qualifying debts equate to more than £20,000

Why ask for creditors to hold action?

If you are expecting your Debt Relief Order to be successful, you could benefit by asking creditors to hold off taking payments or adding interest to the debt while a decision is made. A DRO could prevent you from ever having to pay that debt back again, so asking for the creditor to hold off taking payments could save you some money. 

Moreover, asking for the interest to be frozen will prevent your debt from getting bigger in the event that your DRO application is rejected. 

How to ask creditors to hold off while DRO is assessed?

The best way to ask creditors to hold off on payments or freeze interest is to put it in writing. Money Nerd has already created an effective letter template you can use to do this. Remember to download our free letter asking creditors to hold off while your DRO is decided. It’s polite, professional and could make all the difference!

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
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