Debt relief order after 6 years – What You Need To Know

Are you feeling unsure about life after a Debt Relief Order (DRO)? You’re not alone. Every month, over 170,000 people visit our website seeking advice on debt solutions. 

In this article, we’ll explore:

•  What a DRO is and how long it lasts
•  What happens when your DRO ends
•  The impact of a DRO on your long-term financial health
•  Possible debt solutions and alternatives to a DRO
•  Answers to frequently asked questions about DROs

We understand your worries about the long-term impact of a DRO and the uncertainty of what happens when it ends. We’re here to help you figure things out.

How long does a debt relief order last?

Debt Relief Orders are one of the alternatives to bankruptcy and normally last 12 months. If you meet the DRO eligibility criteria, there is a halt to creditor actions during your DRO to recover any debts included in your Debt Relief Order. However, creditors can still contact you to notify you how much you owe.

How long does a debt relief order stay on the credit file?

A Debt Relief Order will remain on your credit file for six years after it was made. You will likely struggle to take out any credit during the DRO duration and for a time afterwards.

What happens at the end of a debt relief order?

You wont receive official notice or communication telling you of the completion of your DRO, and you are no longer held to your DRO obligations. If you cant remember when your debt relief order was due to end, you can check up on your entry on the Insolvency Service register.

How will a DRO impact me in the long run?

A direct relief order might seem like a good way of solving your debt problems. However, its worth noting what happens to a debt relief order after six years. A DRO will end up impacting your credit record for six years and will also affect any future credit applications you might want to make

Credit reports look back over the past six years of your borrowing history, but if you have taken out a debt relief order after six years, it will still be on your record. This will indicate to any future creditors that you have struggled to keep up repayments in the past. 

Its worth bearing this in mind, as the effects that a debt relief order after six years can be quite detrimental. For instance, you may struggle to open a new bank account because of your debt relief order or take out a mortgage after six years.

You may have to manually send the credit reference agencies a copy of an official document that states your debt relief order has ended, as occasionally, they dont automatically update your file regarding your debt relief order after six years.