How to get a debt relief order
If you've decided you want to apply for a debt relief order (DRO) you'll need to find a DRO adviser to make your application to the Insolvency Service who deal with all DROs.
Step 1: find a DRO adviser
You can only apply for a DRO through a specialist DRO adviser, also called an 'approved intermediary'. This is usually a skilled debt adviser who has been given permission to complete the forms and give advice on DROs. They will check that you're eligible to apply and that a DRO is right for you.
You can find a DRO adviser at most local Citizens Advice. Contact your nearest Citizens Advice.
You can also find a DRO adviser through other approved organisations, known as 'competent authorities'. Check which organisations are approved on GOV.UK.
Step 2: work with the DRO adviser to make your application
Your DRO adviser will help you work out whether you're eligible to apply for a DRO. They'll also look at whether it's right for you - for example, how it might affect your credit rating, lifestyle and work.
If you decide to go ahead, you'll need to work with your DRO adviser to fill in your application. This will include working out your income and outgoings, and adding up all your debts and assets. Your assets are any savings you have or things of value you own.
It's important to be honest and give your DRO adviser all the information you have. If you apply but you're not eligible, you won't get your application fee back.
The application is sent to an official receiver at the Insolvency Service. It’s their job to make a decision about the application and deal with your DRO if it goes ahead. If the official receiver finds out you've been dishonest in your application, the restrictions under a DRO could be made to last up to 15 years. In serious cases of dishonesty you could be taken to court.
Step 3: pay the fee
You have to pay a fee of £90 to apply for a DRO. You must pay this in cash at a post office or Payzone outlet. You can pay it in one go or by instalments. You won't get your money back if your application is turned down, so it's important to make sure you're eligible to apply for a DRO before you pay the fee.
You can find your nearest post office at www.postoffice.co.uk.
There are some charities and trusts that might be able to help with paying the DRO fee - your DRO adviser can find out more information about this.
Step 4: the official receiver makes a decision
When you've paid your fee and your application is received, the official receiver will make one of the following decisions:
- make the debt relief order if you're eligible and your application has been filled in correctly
- defer the order if they need to find out more information to make a decision
- refuse the order if you're not eligible or you've given false information
After you've applied for a DRO, you must co-operate with the official receiver. This means answering their questions and providing any further information they might ask for. It’s important that you let the official receiver know if your income goes up or you receive a lump sum, for example a tax refund or backdated benefit award.
If your application is turned down, you'll be given written reasons why it's been refused. You might be able to challenge the decision.
Find out what happens when a DRO is made.