Debt Relief Notice (DRN)
What is a Debt Relief Notice (DRN)?
A DRN is a formal agreement that allows you to write off your debt in full.
Debts such as personal loans, credit card loans, store cards, credit union loans and overdrafts could be included in a DRN.
Is a DRN right for me?
If you have a low income, few assets and debts of less than €35,000 that you can’t repay, then a DRN could be the right solution for you.
Benefits
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Freedom from your creditors
Your Personal Advisor (also known as an Approved Intermediary) will deal with your creditors on your behalf, putting an end to any demands for unpaid debt – no more phone calls, letters or visits.
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Debt written off after 3 years
A DRN will last for up to 3 years. After that time the debts named in your DRN will be completely written off.
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Reasonable standard of living guaranteed
Throughout a DRN, you are entitled to a reasonable standard of living. You will not be told how you should spend your allocated reasonable living expenses, so you are still in complete control of your spending.
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Better credit rating
Availing of a DRN should indicate to potential lenders that you are proactively addressing your financial situation, and on completion of the DRN you will be solvent, which could make you more eligible to obtain credit.
Costs
The service is free of charge.
Get Help
How do I get a DRN?
First, make an appointment to meet with an Approved Intermediary – these are a network of qualified debt advice professionals appointed by the ISI to deal with DRNs and are experts in the area of debt advice.
Call the ISI’s information line 01 764 4200
Frequently asked questions
Start gathering details of your debt – including a list of how much you owe and to whom, details of payments you have missed, as well as details of your income, average spending needs and any assets you may have. Bring these with you to your meeting with the Approved Intermediary, and they will let you know if a DRN is the right solution to tackle your debt.
You may be eligible for a DRN if…
- Your unsecured debts are €35,000 or less.
- You do not have a mortgage or own a property or other large asset.
- You have €60 or less left after reasonable living expenses each month (the Approved Intermediary will go through this with you).
- You meet the criteria for having very little assets apart from some essential items of value.
- You have not been granted a DRN before.
If you have a mortgage, a DRN is not a suitable solution, as you would be considered to have a considerable asset, even if you are not currently meeting mortgage repayments.
However, you may be eligible for a DSA or PIA.
If you are granted a DRN you do not make payments to the creditors named in the DRN unless your financial circumstances improve considerably, in which case you would need to inform the ISI.
If your circumstances improve during the supervision period you must tell the ISI and depending on the level of change, you may be asked to make some contribution to what you owe. This would be done through the ISI; you would not make payments to your creditors directly.
Entering into an agreement such as a DRN should indicate to potential lenders that you are proactively addressing your financial situation and on completion of the DRN you will be solvent, which could make you more eligible to obtain credit in the future. However, the decision on whether or not to give credit is up to the lender and this is always the case.
A DRN will last for up to 3 years and after that time the debts named in your DRN will be written off. However, you can exit the process at any time in most circumstances by paying 50% of the total amount that you owe and the remainder of the debt would still be written off.
However if you receive a gift or payment over €400 you will have to surrender 50% of the value of that gift or payment or the balance of your debt, whichever is the lesser amount, to the ISI. You can only avail of one DRN in your lifetime and you must act in good faith throughout the process.
Related Publications
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How do I get a DRN?
First, make an appointment to meet with an Approved Intermediary – these are a network of qualified debt advice professionals appointed by the ISI to deal with DRN’s and are experts in the area of debt advice.