A DRO is to help you if you’re unlikely to be able to repay your debts.
This might be as a result of:
- the breakdown of a relationship
Debt remission register (DRR)
The register shows details of all debt remission orders that have been granted and are still in effect, or have been discharged in the last three months.
There are currently no debt remission orders.
Download debt remission register (DRR) (size 86kb)
Article 7 of the Debt Remission (Individuals) (Jersey) Law 2016 on Jersey Law website
Debt Remission (Individuals) (General Provisions) (Jersey) Order 2016 on Jersey Law website
What a debt remission order does (moratorium)
The main effect of a DRO will be to create a ‘breathing space’, called a moratorium, over your debts listed in the DRO. This means that the people you owe money to (the creditors) can't take any action to recover their debts during this time (usually 12 months from the date of the order).
At the end of the moratorium, the debts covered by the DRO will be written off, and they can't be chased for in the future.
The DRO will not release anybody else, eg a joint borrower or a guarantor, from repaying the debt.
Changes in circumstances during moratorium
If your circumstances improve during the moratorium, you can make payments to your creditors and the Viscount will consider bringing the DRO to an end. If the changes happen close to the end of the 12 month moratorium, the Viscount can extend the moratorium for up to three months so you can come up with an arrangement with the creditors.
Debts that aren’t covered
Some debts are not covered by the DRO and you will continue to be responsible for paying them.
- unpaid fines
- payments due under compensation orders or confiscation orders
- payments ordered in family proceedings (eg maintenance to a former spouse or child support)
- money due to health insurance / Social Security funds / the Comptroller of Taxes
- damages ordered in civil proceedings (eg for negligence, breach of statutory or contractual duty)
- any debt incurred as a result of fraud
Requirements for applying for an order
You can apply for a DRO so long as you, as the debtor:
- are over 18 years old
- have lived in Jersey for the last five years
- not had a DRO in the last five years
- aren’t bankrupt
- don’t own assets worth more than £5,000 (not including a car worth up to £2,000)
- have less than £100 disposable income after tax, social security and normal household expenses
- have less than £20,000 in debt to be covered by the DRO
- have acted in good faith in relation to your property and debts. This means you haven’t:
- sold your property for less than what it’s worth
- got into debt knowing that you won’t be able to repay it
- been involved in gambling, high risk speculation and / or unreasonable extravagance
- been careless about your business affairs
- been involved in fraud
- been unco-operative with Jersey Citizens Advice or the Viscount
How to apply for a debt remission order
If you want to apply for a DRO, you’ll need to contact Citizens Advice.
Citizens Advice will help you to:
- decide if a DRO is appropriate for you
- understand the requirements and conditions for a DRO
- understand the consequences of making the application
- work out if you can pay something to your creditors
- make an application
It’s a criminal offence to provide false or misleading documents or information to Citizens Advice or the Viscount.
What you need to provide
When applying for a DRO, you’ll need to go to Citizens Advice Jersey with:
- evidence of your income (eg bank statements and pay slips)
- your assets and liabilities (eg what you own and what you owe to others; your home or car)
- the names and addresses of your creditors and the amount you owe them
- any other information about your financial affairs
After you submit your application
Citizens Advice will review the information you have provided and your circumstances. If they think that you qualify for a DRO, they will send your application to the Viscount who will then decide whether to allow a DRO. They can ask for more information if they need it.
The Viscount can refuse to make a DRO if you don’t qualify or if you don’t provide any information that the Viscount asks you for. You will be given reasons why which you may be able to appeal against.
After a DRO is made
When a DRO is made, the Viscount will then write to your creditors to let them know that the DRO has been made and its effect. If the debt is covered by the DRO, the creditor can't continue to chase you for payment.
Creditors appealing against the DRO
A creditor can object within 28 days of being told about the DRO. If an objection is accepted, the Viscount can amend or cancel the DRO or refer the matter to the Royal Court.
If the creditor is still unhappy, they may be able to appeal against the decision.
What you must do while a DRO is in effect
If a DRO is made, there are some things that you’ll need to do while it is in effect.
- not borrow more money or run up further debt of £500 or more, unless you have told the lender about the DRO in advance
- this includes any borrowing you make jointly with another person, eg ordering goods but then not paying for them when they are delivered
- tell everyone that you do business with that a DRO has been made, including your suppliers
- not manage a business, including being a member of the States of Jersey, while the DRO is in effect and for five years after it comes to an end in relation to being a States member.
- continue to pay ongoing liabilities, eg rent and utility bills
If you don’t, you may be liable to a fine and / or imprisonment.
More information about debt remission orders
If you need more information, you can contact Citizens Advice on +44 (0) 1534 724942 or the Viscount’s Department Insolvency Team on +44 (0) 1534 441410.
Email Citizens Advice
Email Viscounts Department
Debt remission orders on Citizen’s Advice website