In order to qualify for a DRO, you’ll need to meet the following criteria.
What are the qualifying criteria for a debt relief order?
- You must have no more than £75 left over each month after paying your household bills (£50 in Northern Ireland)
- You can’t own a vehicle that’s worth more than £2,000 (£1,000 in Northern Ireland) – though vehicles adapted to help you with a physical disability are exempt from this cap
- You must not be subject to any current bankruptcy or IVA proceedings or have had a DRO approved in the last six years
- You can’t be a homeowner
- Your current qualifying debt balances must not total more than £30,000 (£20,000 in Northern Ireland)
- You can’t own assets worth more than £2,000 (£1,000 in Northern Ireland)
- You must have lived in or run a business in England, Wales or Northern Ireland for the last three years
An official receiver will be assigned to deal with your DRO application. The official receiver will investigate all of your circumstances and can choose to decline a DRO if you've:
- Given away a property, any money or assets or sold them for less than they're worth in the last two years
- Favoured any of your creditors by paying one more than others in the last two years
It's very important that you disclose as much information as possible so that the official receiver can make an informed decision. If you apply for a debt relief order (DRO) it’s an offence to mislead the official receiver about your situation.