The 12-month moratorium
A Debt Relief Order creates a formal moratorium — a legally protected period during which creditors listed in the DRO cannot pursue you. They cannot phone, write to you, take court action, instruct bailiffs, or add interest or charges.
The moratorium starts on the day the Official Receiver approves the DRO and runs for exactly 12 months.
During this period you make no payments to the debts included. Your priority is to stabilise your finances — get essential bills up to date, deal with any priority debts not covered by the DRO, and avoid taking on new debt.
What happens at the end of 12 months
If your circumstances have not improved (still low income, still limited assets, still under the DRO thresholds), the debts listed in the DRO are automatically written off. There is no need to reapply — the discharge happens by operation of law.
You receive confirmation from the Official Receiver. The entry on the Individual Insolvency Register is removed shortly after.
The record stays on your credit file for six years from the start date of the DRO, not from discharge. Because DROs are 12 months, this usually means around 5 years of credit file presence after the DRO ends.
What if your circumstances improve during the DRO?
You have a legal duty to inform the Official Receiver if your circumstances change significantly. This includes: a new job or significant pay rise, an inheritance or windfall, coming into possession of an asset above the value limits, or moving to full-time employment.
The Official Receiver will assess whether the change means you no longer qualify. If your income has risen above the surplus test, the DRO can be revoked — the debts revive and you become liable again.
Small changes (a modest pay rise, benefits going up in line with inflation, a small tax rebate) are unlikely to cause revocation. Significant changes almost always trigger a review.
Extensions and variations
Unlike an IVA, a DRO cannot be extended. It runs for 12 months and either results in discharge or revocation. There is no equivalent of a variation.
If a new debt emerges during the 12 months that was not listed in the original application, it is not automatically covered. Debts that were not listed can be pursued by the creditor and are not discharged.
This is why the initial application must include every qualifying debt — the Authorised Intermediary who submits the application will normally do a thorough disclosure exercise to catch everything.
Can you cancel a DRO once it starts?
You cannot voluntarily cancel a DRO. Once the Official Receiver has approved it, the moratorium period runs for 12 months and either results in discharge or revocation for cause.
If you regret entering a DRO (unlikely but occasionally happens where circumstances change quickly), you would need to comply with the disclosure duties and the DRO would either continue or be revoked based on the objective tests.