
Debt Relief Order (DRO)
What is a Debt Relief Order (DRO)?
A debt relief order (DRO) is a way to have your debts written off if you have a relatively low level of debt and have few assets.
A DRO is only available to individuals who have very little disposable income available to pay to their creditors, have few or no assets, and have a limited level of debt.
You may be eligible for a Debt Relief Order if you owe less than £50,000 in total to your creditors, you have £75 or less left over each month after your essential bills and outgoings have been paid, your car (if you have one) is worth less than £4000 (£2000 in Northern Ireland) and your other assets don’t exceed a value of £2000.
A DRO will last for 1 year, and once your DRO has ended you are released from your debts (with certain exceptions). You won’t need to make any payments towards your debts and there is no fee to apply.
You can only make an application for a DRO via an Approved Intermediary.
Advantages of a debt relief order:
