Who is it for?
A debt relief order (DRO) is designed to help people with debts of less than £15,000 in total and have no more than £50 left over each month after paying essential living expenses.
It’s a legal procedure similar to bankruptcy. It is not suitable for anyone who either owns their home or has assets totalling more than £300 (excluding one car up to the value of £1,000).
How does it work?
You apply for a DRO through an intermediary who submits the application to the official receiver. You have to pay a fee of £90 which you won’t get back if the application is unsuccessful. But if it is successful, your debts will be written off after 12 months as long as you keep to the terms and conditions of the order. During the 12 months your creditors won’t be able to chase you for payments or add interest and charges to the debt.
How can we help?
We are among the few approved organisations able to submit debt relief order applications, and we have a team of intermediaries who can help. Our online debt advice service, StepChange Debt Remedy, can help determine the best course of action for you; whether a DRO, a debt management plan or another debt solution.