Debt Relief Orders Moratorium Period
When you start a Debt Relief Order, there is a Moratorium Period placed on the debts listed in your DRO. But what does this mean, and what are the implications?
First of, the moratorium is basically the time period during which your financial situation must stay broadly the same as when the debt relief order is first started. This is usually the 12 months period that is being stated in the official DRO details, but the official receiver has some flexibility in this respect.
The main things is that if your financial circumstances change within the moratorium, so that you are able to make payments to your creditors, then the official receiver may terminate your DRO. If these changes are close the end of your 12 month moratorium, then the official receiver may extend the moratorium by 3 months so that you are protected by the DRO legislation whilst coming to a new arrangement with your creditors.