Change of circumstances during a Debt Relief Order
A pay rise, a new job or an inheritance during the 12 months can affect your DRO. Reporting it is a legal duty — and the sooner, the more options you keep.
Applies to: England & Wales
What to do now
- Write to the official receiver using the details on your DRO notice.
- Tell your DRO adviser at the same time.
- Do not spend or give away a windfall before getting advice.
What you must report
- An increase in income — a new job, more hours, a pay rise or a new benefit.
- Money or property you receive, such as an inheritance, a gift or a compensation payment.
- Anything you find was wrong or missing from your application, even after the 12 months.
Report from the date you apply until the end of the 12-month period. You can phone, but writing and keeping a copy is better. The Insolvency Service enquiry line is 0300 678 0015.
When a DRO can be revoked
Under section 251L of the Insolvency Act 1986, the official receiver can revoke a DRO if, among other things:
- your spare income or the value of your property no longer meets the DRO conditions at any time after the order was made;
- information you gave was false, incomplete or misleading;
- you have not complied with your duties;
- you become bankrupt or propose an IVA.
The official receiver must consider whether to give you time to make arrangements with your creditors, and can delay the revocation by up to three months.
If the DRO is revoked
The moratorium ends and the debts become payable again, and creditors may add interest or charges for the period since you applied. With higher income, you might make an affordable repayment offer; with a lump sum, full and final settlements may be possible. Get free advice before contacting creditors.
Changes that may not end it
Not every change leads to revocation. A small increase that still leaves your spare income at £75 a month or less, or a gift that keeps your assets within the limit, may not change the outcome — but you should still report it and let the official receiver decide. If your situation gets worse, you do not need to do anything for the DRO, though you should tell your adviser.
If you do not report
Failing to report is an offence that can lead to a fine or prison, and the official receiver can seek a Debt Relief Restrictions Order of up to 15 years. Hiding a change is far riskier than reporting it.
Moving home
Tell the official receiver your new address so you receive letters about the DRO.
This page explains how the solution works. It is not a recommendation, and it cannot tell you whether it suits you — a free, regulated debt adviser can look at your full situation.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.
Common questions
Do I have to report a pay rise during a DRO?
Yes. You must tell the official receiver about any increase in income during the 12 months. If your spare income goes above £75 a month, the DRO can be revoked.
What happens if I inherit money during a DRO?
You must report it. If it takes your assets over the limit, the official receiver can revoke the DRO and the debts become payable again.
Is it an offence not to report a change?
Yes. It can lead to prosecution, revocation of the DRO and a Debt Relief Restrictions Order of up to 15 years.