We aim to make our website as accessible as possible. However if you use a screen reader and require debt advice you may find it easier to phone us instead. Our phone number is 0 8 0 0 1 3 8 1 1 1 1. Freephone (including all mobiles).
StepChange Debt Charity logo
i This solution is only available in England, Wales and Northern Ireland.

DRO moratorium period. What if my situation changes during my DRO?

If the Insolvency Service approve your debt relief order (DRO) you'll start a 12 month moratorium period. Simply put, during this 12 months you still have to meet the criteria for a DRO or it could be cancelled.

If your situation significantly improves then it might affect your DRO application. Some of the reasons DRO clients' situation improves include:

  • Starting a new job
  • Receiving a pay rise or a better paid job
  • The amount of benefits you're entitled to increases
  • You become entitled to extra benefits you're not currently getting

If your income goes down or only increases a little this won't affect your DRO.

If any of the above things happen you'll need to contact the Insolvency Service. They'll review your budget and see if you still meet the criteria for your DRO.

What happens if I get a lump sum of money during the next 12 months?

As good as a lump sum of cash might affect your DRO application. If you do receive one you'll have to let the Insolvency Service know about it.

Lump sums will normally come from:

  • An inheritance
  • Winning the lottery (you never know!)
  • Compensation from an accident
  • Backdated benefit payments
  • PPI reclaims (this is why you shouldn't start any PPI claims during your 12 month moratorium period). 

If you receive a lump sum or an asset during your moratorium period your DRO won't automatically be revoked (cancelled) as long as:

  • It's worth less than 50% of the total amount of debt you owe
  • You tell the Insolvency Service DRO Team within 14 days of receiving it. If they find out this information from someone else they'll revoke your DRO.

As long as you tell the DRO Team at the Insolvency Service about your lump sum they'll follow these principles:

  • If it's worth less than £705 your DRO won't be revoked
  • If it's worth between £705 and £1,849 the DRO Team will make a decision based on your personal circumstances
  • If it's worth more than £1,850 your DRO will be revoked

Need a helping hand?

If you need a bit of extra help getting your DRO set up

0800 107 1339*

Or if you live in Northern Ireland

02877 767 745**


*Calls are free from UK landlines. Mobiles could be considerably more. Please check with your provider.

**Calls from landlines are charged at a local rate. Mobiles could be considerably more. Please check with your provider.

Helping you become debt free...

“I wish to thank your staff for all the great help they gave me when I was in so much debt.
They were a pillar of support to me.” (Leslie, Essex)

Foundation for Credit Counselling Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no.1016630 and SC046263. It is a limited company registered in England and Wales (company no:2757055). Authorised and regulated by the Financial Conduct Authority.

*This is the average rating of our service based on the StepChange reviews on Feefo by DMP and DRO clients three months into their solution.

© StepChange Debt Charity 2017