How does a DRO work?
You need to apply for a DRO through one of the organisations approved by the Insolvency Service, of which we are one.
If your DRO is approved, payments to your debts are put on hold for 12 months and your creditors cannot take any action to collect the debts during this time, although interest and charges can still be added. If after the 12 months your circumstances haven't improved, then all of your debts included in the DRO are written off.
If during the 12 month period your DRO is cancelled (revoked), your creditors can pursue the debt again, with interest and charges added. You would then need to consider what other repayment options are available to you. Should this happen, we can help you look into what you can do next.
How much does a DRO cost?
A DRO costs £90. You pay the fee directly to the Insolvency Service and you can’t submit your application until the fee is completely paid.