Is a DRO suitable for me?
DROs are specifically designed for people with few assets and a relatively low level of debt. The criteria to be able to apply for a DRO is different depending on where you live:
• If you live in England or Wales you may be eligible if you owe less than £20,000 and have less than £1,000 in assets (and a car worth no more than £1,000).
• If you live in Northern Ireland you may be eligible if you owe less than £15,000 and have less than £300 in assets (and a car worth no more than £1,000).
You must also have less than £50 in surplus income per month. A DRO can be a cheaper alternative to bankruptcy.
You can only apply for a DRO if you live in England, Wales or Northern Ireland. If you live in Scotland read our debt advice in Scotland page for more information on the solutions available to you.
How does a DRO work?
A DRO freezes your debt repayments and interest for 12 months. If your financial situation hasn’t changed at the end of this period then your debts will be written off.
How much does a DRO cost?
A DRO will cost £90. This is the amount charged by the Insolvency Service to process a DRO application. You can't get any discounts or exemptions like you can with bankruptcy fees, so the full £90 needs to be paid before your application can be submitted.
The fee can be paid in one lump sum or in instalments over a 6 month period. Once your fee has been paid and your application is submitted you can't get your money back, even if the DRO is rejected or revoked.