Debt Relief Order

What is a Debt Relief Order?

A Debt Relief Order (DRO) is a form of insolvency which is designed to help people who have relatively low debt, little surplus income, and few valuable assets.
A DRO is similar to bankruptcy, but for people with income and assets of low value enough to be excluded from bankruptcy – so the process is less complex and cheaper.

Advantages

  • Affordable Costs

    The fee (£90) is affordable and can be paid by instalments but must be paid before the application can be made.

  • Confidence of Good Advice

    The approved intermediary ensures that you are given appropriate advice and that you fit the criteria for a DRO.

  • Creditor Protection

    Creditors included in the DRO cannot take further action against you without the Court’s permission.

  • All Debts Written Off

    A DRO last for 12 months, and once completed you are released from all your debts.

Considerations

  • Not Private

    Being subject to a DRO is recorded in the Personal Insolvency Register.

  • You Can't Already Be Insolvent

    You may not be currently bankrupt, subject to bankruptcy restrictions, in an IVA or done a DRO in the last 6 years.

  • Not for Homeowners

    You won’t be able to have a DRO if you own a house, even if it has no equity in it.

  • Debt Relief Restrictions Order (DRRO)

    You will be committing an offence if you get credit of £500 or more without disclosing that you are subject to a DRO.

  • Employment Implications

    Those subject to a DRO may be excluded from certain professions and roles.

  • Restrictions on Credit

    You will be committing an offence if you get credit of £500 or more without disclosing that you are subject to a DRO.

  • Co-operation Required

    Your DRO could be cancelled if you don’t co­operate with the official receiver while the DRO is in force.

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