Can my debt relief order be revoked?
There are certain circumstances in which a debt relief order (DRO) can be revoked.
If this happens, you’ll need to find another debt solution or contest the decision.
When can a DRO be revoked?
The official receiver may revoke your DRO if you:
- obtained it fraudulently
- didn’t comply with the DRO restrictions (e.g. you’ve taken out a loan of £500 or more without letting the lender know you’re on a DRO)
- didn’t cooperate with requests from the official receiver or let them know about a change in circumstances
- didn’t meet the DRO eligibility criteria
- left out relevant information about your income, assets, or debts
- have an increase in income that means you’ll have over £75 left at the end of each month after household expenses – if this happens near the end of your DRO, it could be extended so you can arrange a new agreement with your creditors
- receive a lump sum of £2,000 or more - you must report this to the official receiver and they'll decide whether it's appropriate to revoke your DRO or not
In certain cases, the official receiver can apply for a debt relief restrictions order (DRRO) against you. This extends the time you’ll have to follow certain restrictions and can be instead of, or as well as, revoking your DRO.
Can a creditor ask for my DRO to be revoked?
Creditors can only ask for your DRO to be revoked if they believe that any of the following applies:
- you’re already bankrupt
- you’ve made an individual voluntary arrangement (IVA) proposal
- your DRO application has missing or wrong information
- you didn’t meet the criteria for your DRO when you applied
- your debts don’t qualify for a DRO
- you’ve got more than £75 left over each month to pay for your debts after household expenses
- you acquired property over £2,000 in value
- you gave away or sold assets for less than their market value or gave another creditor preferential treatment (paid them off first without paying other debts) in the two years before you applied for your DRO
If a creditor makes a claim to revoke your DRO, the official receiver will send you details of the request and allow you to respond before making a decision.
Criminal charges
If you’ve given false information or deliberately missed out information in your DRO application, it’s a criminal offence. As well as having your DRO revoked or getting a DRRO made against you, you could be fined or go to prison.
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What happens if my DRO is revoked?
If it’s decided that your DRO will be revoked, you and your creditors will receive an official notice that includes:
- the reasons for the decision
- when your DRO will be revoked
- how to challenge the notice
If you don’t challenge the notice, your DRO will be stopped. Your creditors can then start taking action to recover your debts, including any charges or interest that have built up since your DRO application.
How to challenge the decision to revoke your DRO
You can challenge the decision to revoke your DRO. You’ll have to apply to the court who can overturn the decision if they believe it was unjust.
Your DRO adviser will let you know whether this is the best decision based on your circumstances.
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