What Happens After a Debt Relief Order Ends?

What happens on the last day of a DRO

A DRO lasts 12 months from the date the Official Receiver approves it. Unless it has been revoked or extended, discharge happens at the end of that day without any further decision. Every qualifying debt listed in the order is released, and the creditors cannot ask for payment, sue or pass the debt to a collector.

The restrictions end at the same moment. You no longer have to declare the DRO when borrowing £500 or more or opening a bank account. You can act as a company director again, and the duty to report changes ends. Lenders can still see the order on your credit file, so the effect on borrowing takes longer to fade. The restrictions guide describes what each rule covered.

Proving the DRO has ended

The Insolvency Service does not normally send a formal discharge certificate. Your approval notice, which states the start date, is the document that proves when the order ended. Keep it, and any other Insolvency Service letters, indefinitely.

You may need it years later to show a creditor that a debt was included, or to answer a mortgage lender's question about past insolvency. For independent confirmation, search the Individual Insolvency Register shortly before the end of the order, as the entry shows the dates. If you have lost the letter, your adviser's organisation may hold a copy.

The register and your credit file after discharge

Discharge does not change your credit file by itself. The DRO entry stays until six years from approval, and the included accounts remain visible until six years from their own default dates.

1. Month 12

   Discharge

   The DRO period ends. Included debts are written off and the restrictions end.

2. Month 15

   Register entry removed

   Your entry on the Individual Insolvency Register is removed three months after discharge. If it is still there after that, contact the Insolvency Service.

3. Months 12 to 18

   Credit file tidy-up

   Check your file with Experian, Equifax and TransUnion. Each included account should show as closed, defaulted no later than the approval date, and settled or partially settled with a zero balance. If an account still shows as active, write to the creditor with a copy of your approval letter. Raise a dispute with the agency if they do not correct it.

4. Year 6 from approval

   DRO entry removed

   The order is deleted from your credit file, along with the last of the related defaults. From this point your file no longer shows that you had a DRO.

Statutory credit reports are free from each agency. Our guide to how a DRO affects your credit score explains what to look for and how a Notice of Correction can add context.

Creditors who still contact you after discharge

Some creditors, particularly debt purchasers, keep writing after a DRO has ended. Their records may never have been updated, or the debt may have been sold on. The debt has still been discharged, and the letter does not revive it.

• Reply in writing, stating that the debt was included in a Debt Relief Order approved on the relevant date and discharged 12 months later. Enclose a copy of the approval letter and keep the original.
• Do not make any payment or acknowledge the debt as owing.
• If they continue, complain formally to the firm. An unresolved complaint about a regulated lender or collector can go to the Financial Ombudsman Service.
• If a creditor was not listed in the order, the position is different. A qualifying debt that was left out was not discharged, so get advice from a free service before responding.

Debts that survive the DRO

Three groups of debt remain payable after discharge.

Excluded debts

These were never covered. They include court fines, child maintenance, sums owed under family proceedings, student loans and Social Fund loans. TV licence arrears, criminal confiscation orders, court-awarded personal injury damages and debts secured on property or goods also survive. Our page on debts not included in a DRO explains each one.

Debts arising from fraud

A debt you incurred through fraud can be listed in the order, and the creditor cannot chase it during the 12 months, but it is not discharged at the end.

New debts

Anything you took on after the approval date sits outside the order and is owed in full. That includes rent, council tax or energy bills that fell due during the DRO and were not paid.

If the DRO was extended or revoked

The Official Receiver can extend the DRO period, usually to finish looking into a change in your circumstances or a possible breach. If your order was extended, discharge happens at the end of the extended period instead. The register period still runs from discharge and the credit file period from approval.

If the order was revoked, there is no discharge. The included debts are owed again, often with interest, and you will need fresh advice. A different solution, or a new DRO once the six-year rule allows, may be possible. The guide to what happens if your circumstances change covers revocation in more detail.

Rebuilding your finances

The year of the DRO will have forced you to live within your income. The best thing you can do afterwards is keep doing so.

• Keep a budget. The Standard Financial Statement your adviser used is a good template.
• Build an emergency fund. The £2,000 asset limit no longer applies once the DRO has ended, and even a small amount put aside each month keeps an unexpected bill from becoming a debt.
• Keep your basic bank account in good order, with on-time direct debits and no returned payments. See DRO and bank accounts for what comes next.
• Be cautious with credit. If you borrow again, keep it small, repay in full and never borrow to cover everyday spending.
• Ask for help early. If money gets tight again, the same free advice services can help.

Could you apply for another DRO?

Not for six years. A second DRO is not possible until six years have passed from the approval date of the first. You would also have to meet all the usual criteria at the time. Other solutions, such as a debt management plan or bankruptcy, remain open in the meantime. The eligibility guide sets out the conditions.