A debt relief order (DRO) freezes your debts for 12 months, after which time they are written off.
Who qualifies for a DRO?
To apply for a DRO you must owe less than £15,000 in unsecured debts. You must also have no more than £50 in available monthly income; in other words, no more than £50 left each month after paying your essential living expenses.
You cannot apply for a debt relief order if you are a homeowner. DROs are also not suitable if you have assets that are worth more than £300, with the exception of one car, which can be worth up to £1,000.
How does a DRO work?
You cannot apply for a DRO by yourself. A third party must submit your application to the official receiver.
There is a fee of £90 and this sum is not refundable if your application is unsuccessful.
You must stick to the conditions of your debt relief order for a 12-month period. During this time, your creditors cannot pursue you for your debt or add any interest or charges to it.
At the end of the 12 months, as long as you have kept to the terms of your DRO, your debt will be written off.
Free DRO help
Free debt help from our professional debt advisors will help you decide whether a IVA or DRO is suitable for you.
We can talk you through the processes involved and, should you decide to go ahead, we are one of the few organisations that can apply for a debt relief order on your behalf.