Types of loan debt covered
Personal loans from banks and lenders (unsecured).
Payday loans and short-term high-cost credit.
Guarantor loans (both as primary borrower and, from your side, as guarantor).
Doorstep loans (Provident, Morses Club style — many now defunct or restructured).
Peer-to-peer loans.
Loans from credit unions.
Family and friend loans if they have been formalised in writing.
Loans that cannot be included
Secured loans (car finance, second-charge mortgages, logbook loans) are secured against assets and cannot be included in a DRO. The lender retains its security.
Student loans continue on their normal repayment terms.
Court fines survive.
The DRO effect
Once the DRO is granted, the lender cannot pursue included loan debt during the 12-month moratorium. It is written off on discharge.
Enforcement action stops. Debt purchasers cannot contact you about included debts.
Informal loans
Loans from family or friends can technically be included, but the DRO process disclosure requires you to list them. Once included, the family member cannot pursue you (which they usually would not anyway).
Some people choose not to include family loans and continue paying them voluntarily. This is a personal choice — but note that formally excluded debts sit outside the DRO protection.