DEBT RELIEF ORDER (DRO)

  • Suspend payments and write-off debt after 12 months
  • A cheaper option than Bankruptcy if you qualify
  • Debts cannot be more than £30,000
  • Cannot be a homeowner
Apply For A DRO Now

What is Debt Relief Order?

A Debt Relief Order (DRO) is a form of insolvency that can help you to write off debt that you’re unable to repay in a reasonable amount of time. A DRO can be a cheaper option to bankruptcy if you qualify. To be eligible for a DRO you need to meet the following criteria:
  • You need to reside in England. Wales or Northern Ireland, or have done business in one of these countries in the last three years
  • Your debts add up to less than £30,000 (£20,000 in Northern Ireland)
  • You’re not a homeowner
  • Your assets are less than £2000
  • You have less than £75 in income left over after paying for all your household bills and living costs (or £50 in Northern Ireland)
    • If your DRO is approved, payments to your debts are put on hold for 12 months and your creditors cannot take any action to collect the debts during this time. If after the 12 months your circumstances haven’t improved, your debts included in the DRO are written off.

    Benefits of DRO

    • Debts included in the DRO will be written off within 12 months
    • No repayments will be made as long as your circumstances don’t change
    • Creditor contact will stop once the DRO is in place

    Consideration of DRO

    • Once your DRO is in place, you are bound by formal insolvency proceedings and your credit rating will be affected
    • Your details will be recorded on the Insolvency Register
    • If your circumstances change within the 12 months your DRO could be revoked