Debts a DRO covers
- credit cards, overdrafts and loans.
- arrears with rent, utility bills, telephone bills, council tax and income tax.
- benefits overpayments.
- hire purchase or conditional sale agreements.
- buy now – pay later agreements.
- business debts.
What debts are excluded from a DRO?
Debts that are excluded from DRO include:
- All student loans (old and new style)
- Magistrates’ court fines.
- Debts to the child maintenance service or CSA.
- Social fund loans.
- Criminal fines (including debt incurred under the Proceeds of Crime Act)
- Claims against you for damage or personal injury.
- TV Licence arrears.
Do I have to include all debts in a DRO?
Hire Purchase debts
If you have any arrears on a HP agreement, it has to be included in your DRO and after a DRO you are not allowed to make any repayments to those arrears. There is no discretion here. If this is the case, then the debt has to be included in your DRO.
Can CCJ be included in a debt relief order?
Neither a bankruptcy nor a Debt Relief Order can stop the CCJ process if the creditor has a fair claim, but the judged debt can be included in Bankruptcy or a Debt Relief Order.
Can benefit overpayments be included in a DRO?
The judgment means that the Department for Work and Pensions (DWP) cannot recover overpayments of benefit or Social Fund loans by deductions from benefit where that overpayment or loan has been included in a Debt Relief Order (DRO).