A Debt Relief Order (DRO) lasts a year. This is sometimes called “the moratorium period”.
At the end of this year, all the debts that were included in your DRO are wiped out.
You aren’t contacted at the end of the DRO year
There is no “DRO Completion” check made at the end of this year. Not by the Insolvency Service and not by the debt adviser who set up your DRO.
You won’t be asked to provide any details about your income or savings at the end of the 12 months.
(Of course you should have informed the DRO Unit during the year if your income had gone up or you had received some money.)
Most people expect to get a certificate from the Insolvency Service or an official letter from the Official Receiver at the end of a DRO, but nothing arrives!
This is normal – the letter hasn’t got lost in the post. It doesn’t mean that something has gone wrong with your DRO and it hasn’t ended properly.
What could stop a DRO completing successfully?
There are a few things that can go wrong:
- evidence may emerge that your debts were larger than the maximum allowed. Or that you had more than the permitted asset or surplus income level when you started the DRO;
- you may break one of the “DRO restrictions”, see this National Debtline factsheet;
- your income may rise or you may inherit money or get another windfall that increases your assets. This won’t always mean your DRO fails. See DROs – what if my pay increases or I get a lump sum of money? for details.
These problems are all very rare – only about one per cent of DROs fail. You would definitely know about it if one of them has arisen with your DRO.
So if you haven’t heard of any difficulties, one year after the start date it is safe to assume your DRO has completed. That means you no longer owe the debts that were included in it.
Check the Insolvency Service register
The Insolvency Service keeps a register of everyone who has a DRO – this will show the date your DRO ends.
After it has finished, you will see a line saying something like:
Status Currently Subject To Debt Relief Order : Moratorium Period ended on 05 March 2019
Don’t panic about this! You aren’t subject to the DRO anymore, it is badly worded – that word “ended” means your DRO has completed on the date given.
The record will remain for three months after this date. If you check the register again after that, your name should no longer appear.
It’s a good idea to take a copy of this record during the three months it is there for – print it off or take a screenshot of it. You can then show this to any creditor that is disputing whether your DRO has finished.
If you don’t print off the record in time, or you later lose your copy, you can tell a creditor who wants proof your DRO has finished to contact the Insolvency Service’s DRO team to get confirmation.
After the end, you don’t have to tell the Insolvency Service about anything
From this point on, you can win the lottery, inherit a house or get a big pay rise and you don’t have to inform the Insolvency Service.
You can also take money out of your pension. Or borrow money (although your credit rating will be poor for a while).
Of course these may not be good financial decisions, but it’s up to you.
When does your credit record improve?
It takes time for your credit record to recover from a DRO.
The record of the DRO itself will remain on your credit file for six years in all. So it goes five years after your DRO finishes. You don’t have to do anything, this happens automatically.
At the end of a DRO, you will find it very hard to access any form of credit, but it will get easier as time goes on.
You can make this faster by going through a “clean-up” process on your file. This makes sure that the default dates for all your debts are on or before the date your DRO started and that after your DRO finishes, the balances owed are all set to zero and the debts marked as settled or partially settled.
Avoiding debt problems in future
Getting debt-free can seem almost magical at first – it may feel like the first time ever in your adult life that you don’t owe anyone any money.
But there are a lot of pressures these days that make it hard to stay out of debt.
One very positive thing you can do is to start saving an emergency fund, no matter how small.
Angela says
HELLO,
I’ve just had a DRO accepted a few days ago. I have three questions I’d like your help to clarify:
1) I have two credit cards that are not included on my DRO which have £0 balances. and credit limits of more than £500. Do I have to cancel these cards and or tell the card provider about my DRO?
2) Also I have a £300 overdraft with my bank HSBC not included in my DRO and I’m also not using it. Would I have to tell my bank about the DRO and or get them to remove the overdraft?
3) I moved all my direct debits and wages payment to a basic bank account by Monzo. However I opened this account before my DRO was approved, do you foresee me having any problems? like will I need to open another basic bank account and start again with that one?
Thanks in advance for your help, I used Stepchange to help me and was glad I stumbled on your site as you give the insiders insight about what happens, what to expect kind of like ‘ you didn’t hear it from me but …….’ kind of advice that has a feel of being off the record so to speak but all of course totally legit!
Sara (Debt Camel) says
1) You may find the cards are cancelled anyway. If they are not, you cannot use them in the next year. But after the year has finished you can and don’t need to tell the card provider about the DRO.
2) HSBC may well close your account. If not, do not use the account at all for the next year. But after that, well if your Monzo account continues, why not just close the HSBC account and continue with Monzo & no overdraft – – a much better idea.
3) Monzo has a reputation for being friendly in insolvency, but there are no guarantees.
James says
So… Should I write to all my creditors telling them my DRO has finished? Or should I only do that if, after few months, they don’t properly report the accounts as closed to CRAs?
Sara (Debt Camel) says
I suggest you forget all about it for 3 or 4 months. Then look at your credit reports. Most creditors get this right, so you don’t need to do anything.
Wendy says
Hi sara
My debt relief order ended on 8.11.2019. I check my credit files every month and on my credit karma there is a new entry that I dont recognise….its a credit card from
JA JA Finance and it says it opened 2007….I just understand the entry and dont recognize it. What should I do about it? Dont want my credit rating to get worse as want it to get better. Thank you. Wendy
Sara (Debt Camel) says
that is the new name for Post Office credit card. Did you used to have one? If you did, was it included in your DRO? Or had you closed the account before then?
Wendy says
I used to have one sara years ago but I cleared the balance years ago so never needed to be included in my DRO. I am sure the account was closed not entirely sure . Thanks wendy
Sara (Debt Camel) says
Then I suggest you phone them on 0345 607 6500 and say your account was closed years ago, you haven’t had any communications from them but an entry has appeared on your credit record which you want deleted.
Wendy says
Thank you sara for your help I thought of doing that wasnt sure. Wendy
Sara (Debt Camel) says
If they say you still owe money, say you do not agree and ask them to send you a statement of your account.
Wendy says
Hi sara
So I rang ja ja finance Ltd this morning and the fella gave me this story that because they have just taken over bank of ireland etc that their business updates details and even though I explained that this account is closed maybe 10 years ago that he was happy enough to leave it that. He said if I had anymore problems contact the credit reference agency that entry is on. I know the enter says 0 but it is in my opened section of accounts such as my personal bank etc. Dont know what to do now? They know that I dont owe money so cant understand myself why entry is there at all? It even says I first opened credit card in 2007….this is how long ago i had this credit card…..thanks . Wendy
Sara (Debt Camel) says
the entry says zero. So it doesn’t say you owe a balance? But it isn’t marked as settled, satisfied or closed?
Wendy says
Hi sara
So it says ja ja finance credit card
Currently open
Opening balance £0
Start date 01 February 2007
I just dont get this at all….why they would put an entry of a credit card which is closed….no communications whatsoever from them.
Thanks . Wendy
Sara (Debt Camel) says
You need to send Ja Ja a complaint saying you want it removed from your credit record. It is their job to do this, they should not be reporting it to the CRA. And if Ja Ja refuse, send the complaint to the Financial ombudsman.
If you go to the CRA the chances are they will ask Ja jA who will say all their reporting is accurate and the CRA will tell you that and you have just wasted 1-2 months.
Wendy says
I will do that sara thank you very much for your help.
Wendy
Chris says
Hello,
So my 12 month on my DRO ended in Feb 2018.
However when I look at my credit report all the creditors included in the DRO are all shown as defaulted each month up to today’s date and have the remaining balance on them. Is this correct? Or should they be shown as settled and the balances cleared?
Sara (Debt Camel) says
No that’s not right. See https://debtcamel.co.uk/repair-credit-record-dro/ which looks at this situation and how you can get it corrected.
Marie says
Hi I had a DRO that ended in March 2019. In it was a debt to HMRC that i got for the period of 17-18 to 18-19 I already knew that I had the debt so I added it to my DRO. Today I saw that the debt is being recovered through my universal credit. I called HMRC they said as my DRO was before I receive my hmrc debt its right that they are taking it back. Is this right? As its in the dro
Bee Fitz says
Hi I had a DRO in December 2018 which was discharged in December 2019. I have accounts which were included that continue to show as in default. I do not know if I can ask that these be removed as should they be classed as settled and stay for 6 years after the DRO date ? My friend in a similar situation stated she rang some of her debtors and they agreed to remove them . Please could you advise ?
Also I had a debt to the HMRC for over payment of benefits (no fraud) and not tax related. This was included in my DRO but despite the time lapse I have just received a request from HMRC for payment in full or to set up a payment plan. Surely this should have been settled within the DRO ? I used Step change for my DRO if that helps Thank you
Sara (Debt Camel) says
The debts won’t be deleted. But see https://debtcamel.co.uk/repair-credit-record-dro/ for the process of getting all your debts marked as defaulted on or before the start of your DRO and for getting them marked as satisfied or partially satisfied at the end of the DRO.
Tell HMRC that the debt was included in your DRO which started on dd/mm/yy
Bee Fitz says
Hi Sara I contacted Stepchange regarding the HMRC debt and they couldn’t help me as they have no access to old records for my DRO application. I’m disappointed as worried that HMRC won’t believe me even though I have the DRO number from my credit report Any ideas please? Ty
Sara (Debt Camel) says
Have you told HMRC about the DRO? If not, just tell them.
George says
Hi
I had a debt relief order in 2009, it has dropped off my credit report a while ago. I have not had any debt or financial problems since 2009 and my credit report if fine. Do you know if I will have problems with obtaining a mortgage?
Sara (Debt Camel) says
It would be sensible to not apply to a lender who you owed a debt to in your DRO, as they may still be able to see that from their own records.
Many mortgage lenders ask about insolvency. You should ask the exact question they ask – have you ever been bankrupt or in an IVA – No. Have you ever been insolvent? yes.
Most lenders will not care about your ancient DRO. But I do suggest you apply through a good all market broker such as Habito or London & Country. Tell them about your DRO and hopefully they will know if there are any lenders to avoid because of this.
good luck!
Joanne says
Hi
I’ve just had my DRO approved. A week later I had a letter from Fluid stating they have passed my debt on, but they’ve also added about €100 interest. They were notified so how can they do this.
Thanks
Sara (Debt Camel) says
This shouldn’t be a problem, tell the adviser that set up your DRO.
Michael says
Hi, my DRO ended on the 12th March 2021. I waited a few months to my creditors to clear my balances and sort out my default date as some where wrong and they all have except o2 they have kept reporting my account to my credit report as still having a balance and my default date as starting in September not March. I have contacted them and after sending over my DRO documents they said that it has all been done and I need to wait for it to change on my report which it never has. I put a query in at my credit report and got a reply saying o2 have said its been done and I need to wait till my next report. I waited 4 months and still nothing, they are now saying they won’t change it and they wont me to send them proof my DRO as ended which I’ve already done. Is there anything I can do to sort this as I’m going round in circles with them
Thank you for your help
Michael
Sara (Debt Camel) says
have you actually made a complaint to O2? or just asked them to correct this?
Michael says
I tried making a complaint but they told me I needed to email there credit files Referrals which is the department I send my records to last year
Sara (Debt Camel) says
then email that department with COMPLAINT as the subject of your email.
Michael says
Ok thank you, I’ll do that now
Wendy says
Hi Sara
I am still trying clean up my credit file after my DRO in November 2019. On one of my credit files there is an open account by Perch Capital Ltd of £542. I have discovered that they have taken ownership of this account from tm legal which I had a CCJ from lending stream. This CCJ was included in my DRO and when I emailed tm legal a few years back I had no reply. What I did find was that on my DRO the address of tm legal didn’t actually match their address but when I contacted the lady who set my DRO up she said address doesn’t matter but what mattered was that the reference number and amount were the same and yes they were. So what I am asking is what should I do? Should perch be on my credit file stating its an open account when it’s a debt that was included into my debt relief order and what should I do next? Sorry for the long winded just trying to get it clear into my head . Thank you.
Sara (Debt Camel) says
Send Perch a complaint saying that this loan was included in your DRO which ended on dd/mm/yy and ask them to correct your credit record so that the debt shows as settled or partially settled.
the CCJ will continue to show as open.
Wendy says
Thank you for your help Sara just wasnt sure who exactly to contact. Thank you. Wendy
Clare says
So if you have a hypothetical lottery win after 12 months, when your moratorium end you don’t have to inform them or is it after 18 months when your name comes off the registry? Many thanks
Sara (Debt Camel) says
after 12 months.
(and you remain on the Insolvency Register for another 3 months, not 6.)
Clare says
Hi Sara,
Thank you for your reply. Does this mean that after the 12months you can spend (or save) as you wish?
I have things that I would like to/have to save up for like dental work which will take me several months to do, which will take me over the £75 limit at the end of each month. Is it ok to do things like that after the 12 months?
Many thanks
Sara (Debt Camel) says
after 12 months you can do anything you want.
You can spend and save how you want within the 12 months – the £75 a month spare is comparing your income to your outgoings. Say you have £40 a month spare so you are under the £75. If you save that up for 8 months, you will have £320 saved – you still only have £75 a month spare income though.
Saving only becomes a problem in the 12 months if it takes your assets over £2000.
Clare says
Thank you so much for this Sara. I had no idea re. saving during the 12months either. This is such helpful information.
Bee says
What should you do after a DRO if your defaulted accounts which were included still show as missed payments, and open accounts even after 2-3 years on your credit file ? Some debts were sold on to Lowells etc so no original debtor details Ty
Sara (Debt Camel) says
Were these debts sold to Lowells before the DRO started? During the DRO year? Or after the DRO year had ended?
Bee says
Before the DRO and they were included within the DRO but Clearscore still shows them as open
Sara (Debt Camel) says
See https://debtcamel.co.uk/repair-credit-record-dro/ whihc looks at what should have happened and how to complain. Yoru complaints should go to Lowell.
Daniel Harvey says
Hi there,
My DRO finishes in feb 2023 and I want to start my own business, is this possible or will I have to wait some time after the DRO to start a business up.
Sara (Debt Camel) says
You can do this after your DRO finishes. But you will struggle to borrow any money if you need to, eg being given credit by suppliers.
Martyn says
Hi. I have successfully completed my DRO from April 2020 to April 2021. This was for a loan from the Post Office. Unfortunately they are still contacting me by letter and text saying I still owe the debt! I have emailed and written to them telling them I have finished my DRO, (they were sent a copy) what should I do next!
Sara (Debt Camel) says
Is this still showing n your credit record? Has it been marked as defaulted?
Martyn says
Hi Sara
Checked on Experian, still showing as defaulted every month up to this month!
Martyn
Sara (Debt Camel) says
Ok then read https://debtcamel.co.uk/repair-credit-record-dro/ which has a template letter you can use to make a complaint to the Poat Office
Emz says
Hi, I had a DRO in 2018. Ended no issues however I still have two “open accounts” both of which I had written a letter and emailed about back in 2019 but they both refused to remove it. To be honest not checked my credit score since but recently been rebuilding my credit so looked and seen them still there.
What can I do to get these removed??? One is for over £4000 which won’t be helping me
Sara (Debt Camel) says
Who are the creditors?
Are these accounts marked as defaulted or not?
Emz says
Home retail group for just over £170 and Aqua for over £4000. Both say in default on there but then it says current balance
Sara (Debt Camel) says
is the default date on these debts on or before the date your DRO started?
Emz says
Says both update July 2018 so just after my dro
Sara (Debt Camel) says
Then you should ask for the default to be backdated so it is the same as your DRO date and you should ask for the balance to be set to zero. See https://debtcamel.co.uk/repair-credit-record-dro/ which has more about this. If they reuse, send your complaint to the Financial Ombudsman.
Emma Robey says
Thank you!
Danny says
Hi, my DRO ended 2 weeks ago, but when I login to my banks mobile app I still see my negative overdraft balance that was included in the DRO. I haven’t used the account at all during the DRO and only kept the app installed so I could access old statements etc. Do you know if I have to contact the bank to get this amount written off the account?
Sara (Debt Camel) says
The balance should now say zero, it should have been marked as defaulted at the start date of your DRO (or before) and it should be marked as partially satisfied in some way.
But this is too early to bother with – wait at least a couple of months as it may be corrected anyway without you doing anything.
See https://debtcamel.co.uk/repair-credit-record-dro/
Jacqueline says
Hi I had a DRO that ended in Feb 2022. In March 2022 I started a new job and I am now wondering if I should have informed the DRO service and if I should have contacted the companies to offer to repay the debts since my situation had changed? Or should I organise a debt management plan now to repay the debt?
Thanks
Sara (Debt Camel) says
No, you do not need to tell the DRO Service about anything that happens after your DRO has ended.
You no longer owe these debts. You should not contact the creditors and offer to repay them.
Your best option now is to make sure your future finances are secure, by saving up a good emergency fund and paying into a pension.
Anon says
Hi Sara
You mention that a notice should appear on the Insolvency Service DRO record after the DRO moratorium period has ended. Any idea how long it typically takes for this to happen, and if it hasn’t appeared before three months after the end, should the individual contact the IS?
Thanks in advance for your help – this site is very useful.
Sara (Debt Camel) says
I would expect it within a week.
How long has it been since the end of your DRO?
Debra says
Hi Sara, I am still getting letters from debtors from a DRO in October 2018. Also, many of the debts (not ccjs, btw) are still showing as debts not settled or closed. Any suggestions, please??
Sara (Debt Camel) says
All these debts were included in your DRO?
Debra says
Yes everything was named even credit I was up to date with as I was advised by Stepchange Ty
Sara (Debt Camel) says
Then read https://debtcamel.co.uk/repair-credit-record-dro/ which says what to do.
Debra says
Thank you, Sara. I have to find my DRO number as it no longer shows on the Insolvency service website
Sara (Debt Camel) says
Do you have the original letter from the Insolvency Service? If not, ask StepChange.
Debra Ward says
Would you believe Stepchange say they have no record, as I’d also asked them for a list of my debtors. I’ll try again Ty
Natalie says
If you had a DRO and the 12 months had completed, so the debts are wiped/paid. Could you then make a complaint to the creditors that was included in the DRO for irresponsible lending ? Could or would you still receive the lump sum/interest/fees charged back?
Sara (Debt Camel) says
Yes you can complain. But any redress will first be used to “repay” balances in your DRO (even though they have been cleared).
So it’s worth if if the debt wasn’t in the DRO. Or if the balance in the DRO is low compared to the refund you may get.
Aidy says
Hi there,
Im currently in a DRO and I would like to start work somewhere when I find a job. It will be relatively low paid as I don’t have many skills. Do you know what the criteria would be for them to revoke the DRO? As you can imagine this is the last thing i want. I’m not sure how much you can earn without it being revoked and I would rather not take any job if it means my DRO will be revoked. But on the other hand i need to live and survive.
Thanks in advance
Sara (Debt Camel) says
What benefits are you getting at the moment? Are you renting?
Marie says
Hi Sara
You recently advised me to issue complaints to 118118 and JD Williams due to incorrect account reporting after a completed DRO and the 8 weeks is underway for 118118 but JD Williams did get back to me before I logged an official complaint and said they have marked my two accounts as partially settled and reported this to the CRA’s
They are also saying, however, that they will NOT be marking my balances as zero?! This is totally wrong is it not as the whole point is I no longer owe the money but I’m not sure what I can quote back to them in my reply to confirm that they are breaching DRO guidelines?
Sara (Debt Camel) says
This sounds confused. Partially settled means there is zero owing. I suggest you check in a month or two and see what your credit record actually says.
Marie says
I’ve just re-read their statement in their email and it says they’ve marked the accounts as ‘settled and partially satisfied’ to be more precise so I don’t know if that helps? I’m just concerned that the balances not showing as zero will affect my report as all the other creditors have marked the balance as zero
Sara (Debt Camel) says
I think you should wait a couple of months and see what your credit record actually says.
Scott says
Hi my debt relief order is coming to a end in a week, I have a job interview in 2 weeks with more money and going full time, will this affect anything with my debt relief order? I will be taking home a extra £300 + a month if I get the job after my debt relief order has finished
Thanks Scott
Sara (Debt Camel) says
Not after your DRO has ended – the debts are written off.
Good luck for the interview!
Scott says
Sorry just to be clear, once my debt relief order is finished and my 12 months are up I can earn more money straight after?
Thanks
Sara (Debt Camel) says
yes. Or inherit a million. Once your DRO is finished you can do anything and dont have to tell the DRO Unit
Jamie says
Hello,
I am thinking of DRO, but I am a homeowner and my mortgage is up for renewal in around 3 years time. If when I renew I’m not looking to borrow anymore. Would a DRO impact on that?
Sorry if it sounds a silly question
Sara (Debt Camel) says
If you have a property, including one with a mortgage, you are not eligible for a DRO.
I suggest you talk to StepChange about a DMP instead. https://www.stepchange.org/how-we-help/debt-management-plan.aspx
A DMP harms your credit record but you should be able to get a new mortgage fix in 3 years.
Do not underestimate your expenses, you want a budget you can comfortably live on, so include things like replacing household items, car repairs, Xmas, dentists etc
And you can then look at speeding up a DMP by making affordability complaints. See https://debtcamel.co.uk/tag/refunds/