DRO: can rent arrears be included in a debt relief order?

Can rent arrears be included in a debt relief order?

Rent arrears can be included in a debt relief order (DRO) in certain circumstances, but you could be evicted if you don’t pay them.

Speak to a debt adviser, as each case should be assessed individually.

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Should I include rent arrears in my DRO?

Rent arrears, including private and council, can be included in a DRO if you’re eligible. You should think carefully before doing this though, as you may face eviction if you don’t pay your rent.

Private landlords may be particularly keen to get you out of their property if you don’t pay. Speak to a debt adviser first – they’ll explain all your options.

If you want to include rent arrears in a DRO, you must meet all the usual DRO criteria. You can’t owe more than £50,000 overall.

Can my landlord evict me if I have a DRO?

Your landlord can still evict you if you’re behind on rent, even if you have a DRO. You may have to continue making payments to prevent this. Speak to a debt adviser if you need further advice.

When are DRO rent arrears written off?

If your financial situation hasn’t improved after 12 months, any debts covered in your DRO are written off. Your landlord or housing agency can’t ask you to pay back these arrears during the 12-month period.

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Can I get a DRO without including rent arrears?

If you’re facing eviction and it’s an option, try to arrange a payment plan with your landlord. You can still get a DRO without including rent arrears, but you’ll have to meet the DRO criteria.

Your total debts, including rent arrears, can’t be more than £50,000 – even if you're not including them in the DRO.

You can't have more than £75 left over at the end of each month after household expenses. The amount you pay towards rent arrears are included in this limit.

If you’re paying more than £75 every month for rent arrears, you won’t be eligible for a DRO.

DROs and possession orders

If you owe your landlord rent, they can apply for a possession order to take back the property. A judge may decide to suspend a possession order so you can stay, but you’ll have to follow conditions. Breaking these conditions means your landlord can evict you.

Having a DRO doesn’t prevent your landlord from making a possession order against you. If your DRO includes rent arrears, the judge can’t suspend a possession order on the condition you pay the rent arrears. But they can suspend it on the condition you pay current rent and costs.

If you get a DRO and already have a suspended possession order, the DRO will only include rent arrears accumulated up until the date of the DRO. If you accumulate further rent arrears, you’ll be liable to pay them.