Debt Relief Order Restrictions: The Rules of a DRO

There are some rules and restrictions if you have a DRO, such as being unable to promote, manage or set up a limited company without seeking permission from the court.

Will a DRO affect my claim to any benefits?

A Debt Relief Order (DRO) is a legal process for dealing with unsecured debts and is not something that has an impact on your ability to claim any benefits that you are entitled to.

Can I save money while on a DRO?

Reasonable savings are not likely to do anything to jeopardise your DRO, particularly if they are built up from the income you had when you went into your DRO. If your circumstances change, however, during your DRO, then you need to inform the Official Receiver of this, such as acquiring new sources of income.

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Can I go on holiday when I have a DRO?

Although you will have no international travel restrictions placed on you as part of your DRO, you may be expected to declare that you have been made insolvent in future contracts if you choose to move overseas. You must also declare your new income, expenditure and new address to the DRO unit.

How do my Direct Debits work under a DRO?

A DRO will only remove your liability for the debts listed on the application form at the time you applied. You will remain liable to cover the current ongoing costs associated with day-to-day living.

Can I get a council house while on a DRO?

All councils are required to provide information on how to apply, who is eligible and the procedures they will follow when looking at an application. So you can ask the council, or check their website for full details of their application process. You can find a lot of useful information about council housing on Shelters website.

Does a DRO affect home insurance?

Entering into a DRO does not mean that you petitioned for bankruptcy but you have used an Insolvency process to deal with your debts and this will be visible on the Insolvency Register. You must ask the Home Insurance company to be safe. If you do not inform them, your application will be incorrect.

Please read this article on the differences between a DRO and bankruptcy for more information.

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Will a DRO stop me from getting a student loan?

Not at all. Student Loans are available to everyone regardless of credit history. Everyone has the same opportunity of getting one providing that it is your first higher education qualification.

Will my landlord be informed of my DRO?

It is always worth checking your tenancy agreement before entering into a debt solution of any type. If your tenancy agreement has a clause on insolvency, then it will be terminated. A DRO is listed on the Insolvency Register. The Insolvency Register is publicly available to everyone. There may not be any requirement to notify your landlord of the DRO. But this information is visible on a credit reference agency search.

What if my circumstances change?

If you have a change of circumstances during the course of the DRO, you must identify these to your DRO unit. You may also want to read our article on how a DRO affects your employment.

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