Debt Relief Orders - DRO
Debt Relief Orders (DROs) were introduced in UK law in 2009 to provide a cheaper formal alternative debt solution to bankruptcy, for those people who are unable to repay their unsecured debts.
Qualifying Criteria
The DRO is only available if you are resident, or have been resident, in England, Wales or Northern Ireland within the last 3 years.
Your total combined debt level must be under £30,000 - or £50,000 from 28 June 2024 if you live in England and Wales, or below £20,000 if you live in Northern Ireland.
You must be struggling to afford your debt repayments to the point where you cannot afford more than £75 in monthly repayment to your debts.
You must not have combined assets with value higher than £2,000 - or £4,000 from 28 June 2024 for those living in England and Wales, or £1000 for those living in Northern Ireland, with the exception of a motor vehicle, which must be less than £2,000 - or £4,000 from 28 June 2024 in value.
DRO advantages
A DRO is a total debt solution, which means it will remove your debt burden permanently.
There is no application fee for a DRO and it does not require any monthly repayments to be made.
You can only apply for a DRO through the services of a trusted intermediary and the ongoing liability to all debts in the DRO are removed once the application has been accepted.
A DRO lasts for 12 months and, on successful completion, all debts are written-off leaving you debt free.
DRO disadvantages
Entering a DRO will damage your credit rating for a period of 6 years, starting from the date the Order is made.
You will also be subject to certain restrictions during the DRO, similar to those restrictions found under a Bankruptcy Order.
