Debt Relief Order (DRO)

Your financial summary shows that you cannot afford to make an acceptable offer
of payment towards your unsecured debts (loans, credit cards, etc.) and as your
situation is unlikely to improve significantly enough to change this, our
recommendation is that you apply for a type of bankruptcy, called a debt relief
order (DRO).

We have a specialist team who can provide further help and support you through this.

About a debt relief order

A DRO is a legal procedure that gives you a 12-month protection (moratorium)
from the creditors and if your situation doesn’t change and you’re still unable to
pay your debts they’ll be written off after the 12 months. You’re able to apply for a
DRO because you meet the following conditions:

 Your current debt balances are no more than £20,000 (including any interest
charges)
 You have no more than £50 left over each month after paying your
household bills
 If you own a vehicle for domestic use, it is not worth more than £1,000, and
 You don’t’ have assets over £1,000

To make sure your debts are under the total shown above you need to apply for a
copy of your credit file which will show your up-to-date balances. You can get a free
copy of it by visiting www.noddle.co.uk

You must apply for a DRO through an ‘intermediary’ who will submit your
application to the official receiver. A fee is payable to the Insolvency Services
which is non-refundable if your application is unsuccessful. If your application is
accepted, your debts are written off after 12 months. You do not have to make any
payments to creditors included in the DRO once it is approved.

How this works

We will help and support you apply for a DRO. We do not take any fees for our
advice and support at any point during your DRO. We have a dedicated team who
will assist you with the application.
You send us details of the information required. We have enclosed a ‘DRO Checklist’
to help gather all the information we need. This includes copies of wage slips, proof
of benefits, and details for each debt such as account number and creditor name
and address.
Once we receive all your information we will contact you and explain how you pay
the DRO fee to the Insolvency Service and we’ll send a copy of your DRO
application.
Once you’ve paid the fee and you’ve checked the details on your application form,
we can submit the application. We will send you a copy, which you must sign and
send to the official receiver.

The official receiver will then write to you with the outcome. If it is rejected they will tell you
why. If they accept it, they will write to your creditors and tell them.

A record of your DRO will appear on the insolvency register for 15 months.

Things to consider

You cannot apply for a DRO if you are bankrupt or have an individual voluntary
arrangement.
You must declare all your debts in a DRO but some may not be written off. These include
debts such as court fines, student loans or child support arrears. As these cannot be written
off you will need to continue to pay them out of your household budget.
When considering your DRO application the official receiver will:

 Carry out a credit reference check to make sure your information is accurate and
complete.

 Ask you to supply information from the last two years about any sale or transfer of
assets.

Your application could be rejected if you have:

• Added spending in your budget that the official receiver decides is not essential, for
example paying loans back to family and friends or smoking
• Given away or sold an asset for less that it was worth in the last 2 years
• Treated some creditors better than others in the last 2 years, for example if you paid
off a family debt instead of using the money to clear your other creditors
• Used any further credit

• Not told us about all your debts

You will lose the fee if your application is rejected or later revoked.

If you’re paying less than the required monthly payment your credit rating is already affected
and you’ll find it much harder to get further credit.
If your application for a DRO is approved, your credit rating is affected for 6 years from the
date it’s approved and your name is put on the public Individual Insolvency Register for a
minimum of 15 months.
If you think a DRO may affect your job or pension, you must check the terms and conditions
of your contract of employment or pension scheme. You can also speak to your union
representative, human resources department or pension provider.
If you are a director of a limited company, or hold public office, for example, a magistrate,
and don’t want to give these up, you will need to consider the other options in this booklet.
You can contact us to discuss your other solutions.
What to do next

Give us an account or reference number for each debt. You can

usually find account or reference numbers on any letter or statement
sent by your creditor. Make sure you’ve included every debt you
have.

Read and sign the DRO agreement. If you provide any false
information and this is uncovered by the Official Receiver, your
application will be rejected and you’ll lose your fee.

Start saving for the DRO fee. Once we’ve received all the above
information, we’ll send a letter explaining how to pay the fee which is
£90.

Complete the DRO checklist. Make sure you’ve included all the
information that applies to you.

Get proof of your income. For example, photocopies of your last

3 payslips or benefit letter. If you don’t have these, 3 months' worth
of bank statements will do.

Send all these back to us. There are several ways you can send
your information back.

Please email scanned or photographed information to us at

administration.team@stepchange.org

Or, please return the information to:

StepChange Debt Charity

5th Floor
York House
38 Great Charles Street
Birmingham
B3 3JY

Please make sure you pay the correct postage, it is likely that you will
have to pay ‘large letter’ postage.

Please note that unless you ask us to send them back, we will
destroy any original documents.

Destroy all of your credit, store and charge cards.

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Debt Relief Order (DRO) checklist
Please complete and send back to us in the pre-addressed envelope with all
your other documents.

Documents
We need:
Included?
(Please tick to confirm)

Proof of income This can be your last 3 months payslips, a benefits letter or bank
statements. If you are sending bank statements, please circle the
relevant information.

Account number Please make a list of all your creditors and give us the account or
and address for reference number, the address and the amount you owe. Please also
each creditor include any gas, electricity, water, rent arrears, council tax arrears,
benefit overpayments and buy now pay later debts. If you have loans,
please make sure you give us the total balance owing including
arrears. Early settlement figures cannot be accepted. We need up-to-
date balances to make sure your total debt is less than £20,000.

Your signed Please make sure you have read the contents carefully before
agreement signing. If you are unsure about anything, please call us
for assistance.

We also need the following information

Full name

Your client reference number

Place of birth (name of town or city)

Any other names you have been known by. For example,
your maiden name.

National insurance number

If you are employed, please add here the name and full
address of your employer, your occupation and the date
you started your employment with them.

If you have a pension fund with your current or previous

employer(s), you need to supply us with the name of each
employer and your pension or payroll reference number
with them.

Have you ever been subject to a DRO, bankruptcy or an

individual voluntary arrangement (IVA)? If yes please
supply details using an additional page if necessary.

Do you own a motor vehicle? If yes, please add make,

model, registration number and condition, for example
poor, fair or good.

SCDROCHEW09/13
Debt Relief Order Application Agreement
Introduction
Following the review of your financial circumstances which led to our recommendation of a debt relief order
(DRO) to deal with your debts, this Application Agreement sets out what we’ll do to help you apply for your debt
relief order, and what you need to do.

Throughout this Application Agreement any references to "I" or "my" or "me" means you. Any references to
"StepChange Debt Charity”, “they”, “them” or “their” refer to Foundation for Credit Counselling operating as
StepChange Debt Charity.

The Agreement
Client name:………………………………………………………………………………………………..

My client reference number:…………………………………………………………………….……….…

1. The obligations of StepChange Debt Charity (the "Services")

StepChange Debt Charity:

1.1 will provide debt advice to me relating to my financial situation;

1.2 will make an application for a debt relief order on my behalf;

1.3 will advise me if the application is accepted and if not, discuss with me alternative solutions; and

1.4 will not charge me any fees for the Services they provide.

2. My obligations
I agree:

2.1 to provide them with accurate, truthful and complete information about my financial situation;

2.2 I have read the debt relief order information included in my personal action plan;

2.3 I have not been subject to a debt relief order in the last six years;

2.4 a debt relief order will be recorded on the Insolvency Register for 15 months and on my credit file
for six years. This will impact my credit rating, which could affect my ability to obtain further credit,
mortgages, contracts and rental agreements in the future;

2.5 I will be required to pay a non-refundable fee to the Insolvency Service;

2.6 the decision to accept or reject my application lies entirely with the Insolvency Service and if it is
rejected, the fee I paid to the Insolvency Service is not refundable;

2.7 that if my debt relief order is accepted, it can be cancelled by the Insolvency Service if information
comes to light which suggests that my debt relief order should not have been accepted, or if my
circumstances improve sufficiently and the Insolvency Service believes I have sufficient money to
repay my creditors;

2.8 my budget and list of creditors is accurate, true and complete. I will send in copies of all requested
documents before I can progress with my application;

2.9 I will co-operate fully with the Insolvency Service if further information is required;

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 2.10 if I fail to meet any of the conditions of the debt relief order or make false statements this could
lead to the debt relief order not being accepted, being cancelled or having a DRO restriction order
placed on me. If I have knowingly or recklessly given false information this could lead to
prosecution;

2.11 if I have debts that are joint or guaranteed by another person, they will become liable for the full
debt owed; I will disclose all debts at the application stage as any that are omitted cannot be
added later and will not be included in the debt relief order. Failure to disclose all debts may result
in my application being rejected; and

2.12 I will provide accurate, true and complete balances for all my debts as this is the amount which will
be written off under the debt relief order.

3. Termination and cancellation

3.1 I can cancel this Application Agreement at any time with immediate effect by telephone, email or
letter.

3.2 StepChange Debt Charity can cancel this Application Agreement at any time with immediate effect
by telephone, email or letter.

3.3 If I still owe money to my creditors when this Application Agreement is cancelled my obligation to
pay my creditors continues and my creditors may take further collection activities against me
(including legal action) for non-payment of those debts.

3.4 There is no cancellation fee payable if this Application Agreement is cancelled.

4. Data Protection consent for StepChange Debt Charity and my creditors

By signing this Agreement:

4.1 I agree that StepChange Debt Charity and my creditors (and any debt recovery agency on my
creditor’s behalf) can process personal data about me (including my name, address, email
address, telephone number, bank account details and details of my finances and debts) and share
it with others, for as long as they and my creditors (and any debt recovery agency on my creditor’s
behalf) may need to do so in line with data protection law and this Agreement;

4.2 I agree that my personal data may be processed by them and my creditors (and any debt recovery
agency on my creditor’s behalf) in connection with any debt advice provided to me, and/or for them
to arrange and administer a debt relief order (and any debt recovery agency on my creditor’s
behalf). I agree that in arranging a debt relief order, the Services will involve an automated
decision making process;

4.3 I understand that my personal details will also be used by StepChange Debt Charity to create and
maintain their records, to manage and administer their business and to improve the Services;

4.4 I understand that my personal data is confidential and will only be disclosed by them and my
creditors (and any debt recovery agency on my creditor’s behalf) to:

(a) The Insolvency Service in order to obtain their agreement to a debt relief order in respect of
me;

(b) those who they and my creditors (and any debt recovery agency on my creditor’s behalf)
believe necessary to agree a debt relief order in respect of me;

(c) any of its subsidiaries and other group companies which, for StepChange Debt Charity,
includes StepChange Voluntary Arrangements and StepChange Financial Solutions who
might provide other financial solutions to me;

(d) other organisations, including credit reference agencies, regulatory bodies and trade
associations, in connection with the Services, for the purposes of:

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 • verifying my identity;

• obtaining an accurate picture of my debts;

• undertaking audits and quality management;

• processing payments;

• compiling statistics;

• undertaking research;

• attempting to trace me if I cannot be contacted in relation to this Agreement; and

• implementing this Agreement;

and, where my personal data is disclosed to any of these other organisations, it may be held
for as long as may be required for the purposes listed above, including to perform regular
checks to enable them and my creditors (and any debt recovery agency on my creditor’s
behalf) to fulfil legal or regulatory obligations;

(e) financial crime prevention agencies to investigate or prevent financial crime, including fraud;

(f) such other persons required by law (such as the Financial Conduct Authority); or

(g) any other person, but only with my express written consent;

4.5 I understand that all telephone calls will be recorded and may be monitored for quality, training or
audit and regulatory purposes, and to ensure that they and my creditors (and any debt recovery
agency on my creditor’s behalf) provide me with accurate information in relation to my financial
situation;

4.6 I understand that if I ask, they and my creditors (and any debt recovery agency on my creditor’s
behalf) will tell me what information is held about me and provide me with a copy in line with data
protection law. I will let the relevant organisation know if I think that any information held about me
is inaccurate or if my details change, so that the organisation may correct it and update its records;
and

4.7 I understand that I am entitled, under my Data Protection rights, to:

(a) object, or withdraw my consent, to all or any processing of my personal data by StepChange
Debt Charity and my creditors (and any debt recovery agency on my creditor’s behalf); and/or

(b) request that my personal data be erased by them and my creditors (and any debt recovery
agency on my creditor’s behalf)

at any time, by providing not less than five working days' notice to StepChange Debt Charity or my
creditor (or any debt recovery agency on my creditor’s behalf). In the case of StepChange Debt
Charity, this should be sent to StepChange Debt Charity's Data Protection Officer at Wade House,
Merrion Centre, Leeds, LS2 8NG or DPO@stepchange.org.uk.

I acknowledge that if I give such notice, StepChange Debt Charity may be unable to provide the
Services, in which case they shall be entitled to terminate/cancel this Agreement. If I have any
further queries or complaints regarding the processing of my personal data referred to in this
Agreement or my data protection rights generally, I may contact the relevant organisation's Data
Protection Officer (details for StepChange Debt Charity above) or the Information Commissioner's
Office.

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 5. Authority for StepChange Debt Charity to act
By signing this Agreement:

5.1 I authorise StepChange Debt Charity and my creditors (and any debt recovery agency on my
creditor’s behalf) to process my personal data by discussing and sharing any and all aspects of
my financial situation with those who they and my creditors (and any debt recovery agency on
my creditor’s behalf) believe necessary in order to assist me in resolving my financial problems;
and

5.2 I agree that StepChange Debt Charity becomes aware of a debt which is not within my personal
action plan before submission of an application for a debt relief order to the Official Receiver, they
may add the repayment of the debt to my application and advise me if the application is still within
the limits for a debt relief order.

6. Amendment to Agreement
6.1 I understand that StepChange Debt Charity may have to change this Agreement. If they do so they
will send notice to me and/or provide access to the changes. Before StepChange Debt Charity
makes such changes they will give me seven days' notice. If I do not accept the proposed changes
then I can cancel this Agreement under clause 3.

7. Unhappy with the service

7.1 If I am unhappy with the service I can make a complaint by emailing
customerrelations@stepchange.org or by writing to Client Complaints Manager, StepChange Debt
Charity, Wade House, Merrion Centre, Leeds, LS2 8NG.

7.2 If I am not satisfied with the outcome of the complaint process I understand that I may complain to
the Financial Ombudsman Service. For more information I can visit the Financial Ombudsman
Service website at www.financial-ombudsman.org.uk

Client reference number: ………….………………………………………………………………………………

Client name:………………………….………................................................................................................

Client signature:……………………………………………………………………………….………..………….

Date:………………………………..………………………………………………………………………….….…

Foundation for Credit Counselling, Wade House, Merrion Centre, Leeds LS2 8NG trading as
StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no.1016630 and SC046263.
It is a limited company registered in England and Wales (company no. 2757055).
Authorised and regulated by the Financial Conduct Authority

Version 2.0 05/2017

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