What happens at the end of a debt relief order?

A debt relief order (DRO) is a type of debt solution available in England, Wales, and Northern Ireland. It allows individuals with a low level of debt and few assets to have their debts effectively “frozen” for a period of 12 months. At the end of the 12-month period, the debts included in the DRO will be written off if the individual is still unable to pay them.

There are certain requirements that must be met in order to qualify for a DRO. For example, the individual must have debts of less than £20,000 and must not own any assets worth more than £1,000 (excluding their home). In addition, the individual must not have been able to pay off their debts in the past three years and must not have a surplus income that would allow them to make payments towards their debts.

It’s important to note that while a DRO can provide temporary relief from debts, it can have serious consequences for an individual’s credit rating. A DRO will be recorded on an individual’s credit file for six years and can make it more difficult for them to obtain credit in the future.