Some of the answers you may need about DROs can be found here. While this may help you understand more about a DRO we strongly advise that you seek qualified financial advice should you be considering applying for a DRO.
A DRO will stay on your credit record for six years from the date it begins. This may affect your ability to obtain credit in the future.
A DRO lasts for 12 months once it is granted. If your financial circumstances do not improve during that timescale then any debts subject to the DRO are written off. If your situation improves considerably then your DRO may be revoked.
There is an application fee of £90. This fee is paid to the Insolvency Service.
While this isn’t a service we provide we would refer you to the free advice sector for more information.
Excluded debts include student loans, child support agency arrears, Magistrate court fines, criminal fines (includes debts obtained under the Proceeds of Crime Act), debts from fraudulent activity, damage or personal injury claims made against you and social fund loans. Any arrears, debts or outstanding payments on these debts will still need to be paid even if your DRO application is successful.
The Official Receiver will notify any eligible creditors that you are subject to DRO proceedings. Any direct correspondence after the DRO is granted is usually limited to key and legal notices which the creditor is obliged to send to you.