How does a DRO work?
You will need to apply for a DRO through an Insolvency Service accredited intermediary. A full review of your financial circumstances will be carried out to see if you are eligible. An application is then made to the Official Receiver.
Once the DRO has been granted the Official Receiver will notify your eligible creditors. Interest and charges relating to debts included in the DRO will be frozen for a period of 12 months. If you experience a change in circumstances during this period (e.g. a pay rise, inheritance, lottery win etc) you must inform the Official Receiver. They will then decide if the DRO should continue.
If you no longer qualify for a DRO it will be revoked. While the DRO is active you must service essential bills (council tax, mortgage/rent, utilities) and any debts which cannot be included in a DRO.Continue to the next section How do I qualify for a DRO?