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.
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 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 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 in value.
A DRO is a total debt solution, which means it will remove your debt burden permanently.
The application fee for a DRO is single payment of £90 and, once this has been paid, 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.
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.