How long does a Debt Relief Order (DRO) last?

Once you are accepted onto a DRO (Debt Relief Order), you will be given a one-year 'moratorium' on your unsecured debts. That means for one year, you will not have to repay your debts, your debts will not accrue any interest or charges, and you will be protected against legal action from your unsecured lenders.

Does the 'moratorium' always last for one year?

Usually - but not always. If your circumstances do not improve, your debts will basically be suspended for one year. After this period, if there is still no change, your outstanding unsecured debts will be written off.

If your circumstances do change, however, the DRO could be terminated early or extended. Your DRO could be terminated early if your circumstances change sufficiently, allowing you to make payments to your lenders. The DRO could be extended if your circumstances change close to the end of the DRO. Your moratorium period could be extended by up to three months to give you time to reach an agreement with your lenders.

Who will be approved for a DRO?

DROs are designed for people who have a low disposable, few valuable assets and relatively small debts, who need help to deal with their unmanageable unsecured debts. To get onto a DRO, you must meet all of the following criteria:

• After your essential expenses have been paid for, you must not earn more than £50 per month.
• Your assets must not total more than £300, with the exception of a car worth up to £1,000.
• Your unsecured debts must not exceed £15,000.
• You must be unable to pay the money back.
• You must have lived or conducted business in England, Wales or Northern Ireland during the last three years.
• You must not be involved in any other insolvency proceedings.
• You must not have taken part in a DRO in the last six years.

If you aren't eligible for a DRO, but still need some help with your unsecured debts, click here to see the other debt solutions that might be available.

Are there any after-effects of a DRO?

There are a few consequences of entering a DRO. For example, your DRO will be visible on the Insolvency Register for the Order period, and up to three months afterwards. You credit rating will also be affected for six years.

Despite the drawbacks, if you are eligible for a DRO it may be one of the most quick and effective ways to get you out of debt.

If you're not sure whether a DRO is right for you, fill in our Solution Finder.

Try our debt solution finder

Answer a few simple questions and find out which debt solutions could help you, based on your circumstances.

Your Situation

Your total debt: Please select... £2,000 to £7,000 £7,000 to £12,000 £12,000 to £19,000 £20,000 +

Your location: Please select... England Wales Scotland Northern Ireland

Employment status: Please select... Employed full time Employed part time Self employed Unemployed Retired Student

Your email: (optional)

Your Details

First name: Surname: Telephone 1:

Telephone 2: (optional)

I agree to the privacy policy:

Please remember, this is just an information tool. We would always recommend you speak to a debt advisor for the most appropriate way to resolve your debt problems.

We'll give you an on-screen recommendation and call you. One of our advisors will be in touch to answer any questions you may have about your results.

Your privacy is important to us. All correspondence is held in the strictest confidence and we will only request information required to find your debt solution.

Related resources

• Debt Relief Order (DRO) FAQs
• Find out if you qualify for a DRO
• Debt Relief Order Pros and Cons
• What is a Debt Relief Order?
• Is a Debt Relief Order a good idea?
• How to get a Debt Relief Order (DRO)

Tags: debt, DRO, Debt Relief Order, unsecured debts, debt solutions, debt advice, credit rating, Insolvency Register

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.