Preparing for Your Debt Relief Order Application: A Checklist

Why preparation matters

An approved intermediary submits your DRO application, but the figures behind it come from you. The Official Receiver checks them against what creditors, banks and public records show. Gaps and guesses lead to queries, and queries lead to delays or a refusal.

Good paperwork also protects you later, because a DRO can be revoked if the information turns out to be wrong. If you have not yet found an adviser, start with our guide to free, approved debt advice.

Proof of identity and income

The Official Receiver needs to be sure the application relates to you, and creditors match debts to the names and addresses they hold. Have ready:

• Photo ID if you have it, such as a passport or driving licence. If you have none, other documents can usually be accepted.
• Proof of your current address and any previous addresses in the last three years.
• Any other names you have used, including a maiden name or trading name, and your National Insurance number.

The spare income test, less than £75 a month after reasonable expenses, is the one most applications turn on. Income must be evidenced, not estimated, so collect about three months of:

• Payslips from every job, including casual or zero-hours work, with overtime shown.
• Benefit award letters and Universal Credit statements, including any deductions.
• Pension statements, and self-employed takings and expenses with your latest tax return.
• Maintenance you receive, lodger income or regular help from family.
• The income of a partner who lives with you, because the household is assessed as a whole.

Your spending

The adviser uses the Standard Financial Statement, which has spending guidelines for each category. Where your spending is above a guideline you will need to explain why, so bring evidence of:

• Rent or service charges, with your latest rent statement showing any arrears.
• Council tax, gas, electricity and water, including any payment arrangements.
• Food, toiletries and household costs. A month of bank statements helps here.
• Travel, childcare, school costs, insurance, phone, broadband and prescriptions.
• Costs linked to a disability or health condition, which count as reasonable expenses.

The income and asset limits page explains how spare income is calculated and what counts as reasonable.

Every debt you owe

Every debt must be listed, including excluded debts that will not be written off. Leaving one out causes problems later. A creditor who was never told can keep pursuing you, and the Official Receiver may question the whole application. For each debt, note the creditor or collector now handling it, the reference number and the current balance.

Bring the latest statements, default notices, court papers such as County Court Judgments, and any bailiff letters. Debts to family and friends can be included and must be listed too. Our pages on qualifying debts and debts not included in a DRO explain which count towards the £50,000 limit.

Finding forgotten debts with a free credit report

Each of the three UK credit reference agencies must give you a free statutory credit report. It lists most lenders, defaults, CCJs and accounts sold to debt collectors, often including debts you had forgotten. Advisers usually ask for all three, because not every creditor reports to every agency.

Ask for the free statutory report rather than a paid subscription or a "free trial" that later charges a fee. Council tax, some utilities and informal loans may not appear, so the report is a cross-check, not a complete list.

Your assets and your vehicle

Your assets must be worth less than £2,000 in total, with one vehicle worth less than £4,000 disregarded. Ordinary household items are ignored, but the adviser still has to ask. List:

• The balance of every bank, building society and credit union account, including dormant and joint accounts.
• Savings, Premium Bonds, ISAs, shares, cash and valuables such as jewellery.
• Any pension you could draw now, and money someone else owes you.
• Any interest in property, including a share in a home abroad. Read our guide to DROs and homeownership if this applies.

For a vehicle, note the make, model, registration, mileage and condition, plus any finance or hire purchase agreement. If it is anywhere near the £4,000 limit, get a written valuation from a recognised valuation guide. A vehicle adapted for a disability is disregarded whatever its value. See DROs and vehicles for the detail.

The last two years

The adviser reviews the two years before the application for transactions that could lead to refusal or later revocation. Be ready to describe:

• Anything you sold or gave away, particularly to family, and what you received for it.
• Large or unusual payments to one creditor while others went unpaid, which may be treated as a preference.
• Any windfall, compensation or lump sum and how it was spent.
• Previous insolvency, with dates. A DRO in the last six years rules out a new one.
• Borrowing taken out shortly before seeking advice.

If something is awkward, such as money given to a relative last year, tell your adviser. It is better dealt with before the application than found by the Official Receiver afterwards.

What the adviser does next

The adviser enters your income and spending into the Standard Financial Statement and checks your spare income against the £75 threshold. They total the qualifying debts against the £50,000 limit, value your assets against the £2,000 limit and consider whether another solution suits you better.

Before the application goes in, you confirm that the information is true and complete, that you understand the DRO restrictions, and that you will report any change in circumstances. You also give permission for the Official Receiver to make enquiries with your bank and creditors. Our how to apply guide describes the stages that follow.

Mistakes that cause delays

Missing or outdated balances

An estimate is better than a blank, but a creditor letter is better still. If a debt has been sold, the current owner's figure counts. Statements go out of date quickly, so you may be asked for fresh ones if the application is delayed.

Undisclosed accounts

Mention every bank account, including ones you think are closed. The Official Receiver can see when one has been left out.

A bank account linked to a debt

If your wages or benefits go into an account with an overdraft, or with a bank you owe money to, the adviser may suggest opening a basic bank account first. Our bank accounts guide explains why.