Debt Relief Order

A Debt Relief Order (DRO) are a formal insolvency process that can help you deal with your debts if you owe less than £20,000, don’t own your home and have little spare income.

DROs are an alternative debt solution to bankruptcy and usually last one year (12 months). Once you are in a DRO creditors are unable to recover their money without permission from the courts.

Once discharged from your DRO, all of the debts listed in your DRO will be cleared.

Disadvantages of a DRO

  • DROs will stay on public record for 15 months and on your credit record for six years
  • You will have to pay a one-off fee when applying for a DRO
  • You may have difficulty opening a bank account once you have a DRO
  • You’ll be expected to pay back creditors if your financial situation improves
  • You can’t get credit over £500 without telling the lender you have a DRO

Advantages of a DRO

  • DROs usually last one year (12 months)
  • At the end of your DRO your debts will be written off
  • DROs are a low cost alternative to bankruptcy
  • Your creditors can’t take any action over the money you owe

Is a DRO right for me?

  • You are unable to pay the debts your owe
  • You owe less than £20,000
  • You have £50 or less spare income each month (after normal household expenses)
  • You are not a homeowner
  • You have less than £1,000 worth of assets (this excludes a car which you also own, as long as its value is less than £1,000)
  • You have not had a DRO in the past six years and are not in another formal insolvency procedure
  • You have lived or worked in England for the past three years

How do I apply for a DRO?

An application must be made to the Official Receiver’s office through an authorised intermediary. The Official Receiver’s fee is £90. Intermediaries are not allowed to charge you a fee for submitting your DRO application to the Insolvency Service.

Get debt help today

We can help you find a solution to start clearing your debt. Complete the form and we’ll call you back.

  • This field is for validation purposes and should be left unchanged.

By submitting your details you are accepting our privacy policy.

Explore debt solutions

IVA

IVA

Debt Management

Debt Management

Bankruptcy

Bankruptcy

Tell others:

shortlink

Debt Relief Order

Updated on 2016-10-02T00:09:28+01:00, by Kristian Stock.

To enable use of cookies, you must agree to our cookie policy

We use necessary cookies to make our site work. We also would like to use analytics cookies which help to make improvements by measuring how you use the site. These will be set only if you consent and click agree.

Necessary Cookies: These cookies enable core functionality, such as security, network management and accessibility. You may disable these by changing your browser settings, this will effect how this website works and how you can use it.

Analytics Cookies: We’d like to set Google Analytics cookies to help us improve our website site by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone. For more information on how these work please read our Cookie Policy.

Close