CCJ and a DRO: Can You Still Qualify?

Does a CCJ Stop You Getting a Debt Relief Order?

Receiving a County Court Judgment (CCJ) is often a turning point — it signals that a creditor has taken formal legal action to recover money owed. For people already struggling financially, the next question is often whether a Debt Relief Order (DRO) is still a realistic option. The short answer, according to GOV.UK, is that a CCJ does not automatically disqualify someone from a DRO.

What matters is not whether a judgment exists, but whether the underlying debt meets the criteria for a qualifying debt. Most consumer debts that result in a CCJ — credit cards, personal loans, overdrafts, utility arrears, council tax — can be included in a DRO. The legal judgment itself changes the status of the debt, but it does not change the nature of it.

Understanding this distinction is important for anyone exploring formal debt solutions. The sections below set out how DROs work, which CCJ-related debts can be included, what the eligibility thresholds are, and what happens during and after the 12-month moratorium period.

What Is a Debt Relief Order?

A Debt Relief Order is a formal insolvency solution available in England, Wales, and Northern Ireland. It is administered by the Insolvency Service and is designed for people with relatively low levels of debt, few assets, and a low income. According to GOV.UK, a DRO lasts for 12 months. During that period, creditors named in the order cannot take action to recover their debts, and interest and charges are frozen.

At the end of the 12-month moratorium, providing the person's circumstances have not materially improved, the qualifying debts listed in the DRO are written off in full. This makes it one of the most significant formal debt solutions available — and since June 2024, the eligibility criteria have been substantially widened.

How CCJ Debts Fit Into a DRO

CCJ debts as qualifying debts

When a creditor obtains a CCJ, the original debt — for example, an unpaid credit card balance — becomes a judgment debt. For DRO purposes, the Insolvency Service treats judgment debts the same way as the underlying debt type. A CCJ obtained for an unpaid credit card is still treated as a credit card debt; a CCJ for rent arrears is still treated as a rental liability.

This means that, in most cases, the debt behind the CCJ can be listed as a qualifying debt in a DRO application. The CCJ amount — including any court costs the judge awarded — would be counted toward the total debt figure assessed against the £50,000 limit.

Debts that cannot be included

Not every debt qualifies for a DRO, regardless of whether a CCJ exists. According to GOV.UK, excluded debts include student loans, child maintenance arrears, confiscation orders, certain fines, and debts arising from fraud. If a CCJ was granted in relation to one of these excluded categories, that debt cannot be written off through a DRO even if all other criteria are met.

It is also worth noting that if a creditor has already obtained a charging order on a property following their CCJ, the position becomes more complex. A charging order converts an unsecured judgment debt into a secured one — and secured debts generally cannot be included in a DRO. Anyone in this situation would benefit from speaking to a regulated debt adviser to understand how this affects their options.

DRO Eligibility Criteria in 2025

To apply for a DRO, a person must meet all of the following conditions at the time of application, as set out by the Insolvency Service:

• Total qualifying debts must not exceed £50,000
• Total assets must not exceed £2,000 (excluding a vehicle worth up to £4,000)
• Disposable income after reasonable household expenses must be no more than £75 per month
• The applicant must not have been subject to another DRO within the last 6 years
• The applicant must not be going through another insolvency process (such as bankruptcy or an IVA)
• The applicant must be domiciled in England, Wales, or Northern Ireland, or have lived or carried on business there within the past 3 years

There is no minimum debt threshold. Someone with a single CCJ debt of £3,000 and no other liabilities could still apply, provided the other conditions are met. The focus is on the person's overall financial position, not the size of the debt alone.

What counts as an asset?

The £2,000 asset limit covers savings, investments, and property other than a primary home. A primary residence is not counted as an asset for DRO purposes — but a charging order secured against it may affect the analysis, as noted above. Personal belongings of ordinary value, standard household items, and tools needed for work are generally disregarded when calculating total assets.

What Happens to the CCJ During a DRO?

Once a DRO is approved by the Official Receiver, a 12-month moratorium begins. During this period, creditors listed in the DRO — including any whose debts are subject to a CCJ — cannot pursue enforcement action. This means enforcement agents (bailiffs), further court proceedings, and attachment of earnings orders are paused for the duration of the moratorium.

According to GOV.UK, if during the moratorium a creditor attempts to collect a debt included in the DRO, they would be in breach of the order. The DRO is registered on the Individual Insolvency Register, which is publicly searchable, and the CCJ itself remains on the Register of Judgments, Orders and Fines for 6 years from the date of the original judgment — the DRO does not remove it from that record.

At the end of the 12 months, if the person's financial circumstances have not significantly improved, all qualifying debts listed in the DRO — including any judgment debts — are written off. The creditor can no longer pursue the original debt or the judgment.

Applying for a DRO: The Process

A DRO cannot be applied for directly with the Insolvency Service. Applications must be submitted through an approved intermediary — a debt adviser who is authorised to complete DRO applications on behalf of the applicant. Many free debt advice charities, including those listed in the signposting section below, have approved intermediaries on their teams.

The intermediary reviews the applicant's debts, assets, and income, completes the official paperwork, and submits it to the Official Receiver. There is no application fee following the June 2024 changes — previously, a £90 fee applied. The Official Receiver then makes the decision on whether to grant the DRO, typically within a matter of days.

It is important that all debts — including any CCJs — are accurately declared during the application. Omitting a debt, even unintentionally, can lead to the DRO being revoked. Once granted, the DRO is recorded on the Individual Insolvency Register, and a notice is placed in the London Gazette.

What can cause a DRO to be revoked?

A DRO can be revoked if the Official Receiver finds that the person's financial circumstances have improved significantly during the moratorium — for example, if they receive an inheritance or a substantial pay rise that takes their disposable income above £75 per month. It can also be revoked if there is evidence that debts were deliberately omitted or that assets were transferred before the application to fall within the limits. Providing accurate information throughout is essential.

CCJ, DRO, and Credit Records

Both a CCJ and a DRO are recorded on a person's credit file and remain there for 6 years from the date each was issued. These are separate entries — the DRO does not remove the CCJ from a credit file. As a result, someone who obtains a DRO having previously received a CCJ may see both entries on their credit record for some time.

Access to mainstream credit during and after a DRO is typically limited. Lenders carry out credit checks and the presence of both entries will be visible. Over time, as the entries age and financial behaviour improves, access to credit generally becomes easier — but there is no fixed timeline that applies universally to everyone.

It is also worth noting that during the DRO moratorium, the person must not obtain credit of more than £500 without informing the lender of the DRO. Doing so is a criminal offence under insolvency legislation.

Other Formal Options Where a DRO Is Not Suitable

A DRO is not the right formal route for everyone. Where debts exceed £50,000, assets are above the threshold, or income is too high, other formal insolvency options exist. Bankruptcy, for example, covers higher debt levels and can also write off judgment debts — though it involves higher costs and a more intrusive process. An Individual Voluntary Arrangement (IVA) is another option for those with a regular income who want to repay a proportion of their debts over time.

For those who do not meet formal insolvency thresholds, a Debt Management Plan (DMP) — an informal arrangement to repay debts at a reduced rate — may be appropriate. None of these routes are interchangeable; each has different eligibility rules, costs, and consequences. A regulated debt adviser can set out how each works in relation to a specific set of circumstances.

Free Debt Advice Is Available

Free, impartial debt advice is available from the following organisations, which are not affiliated with UK Debt Team:

• MoneyHelper — moneyhelper.org.uk — government-backed money guidance service
• StepChange Debt Charity — stepchange.org — free debt advice and DRO intermediary service
• Citizens Advice — citizensadvice.org.uk — free advice including debt and legal rights
• National Debtline — nationaldebtline.org — free telephone and online debt advice

These organisations can also provide access to approved DRO intermediaries at no cost. Anyone unsure whether a DRO is appropriate for their situation is encouraged to contact one of these services before taking any formal steps.