Can I apply for a debt relief order?
You can apply for a DRO if you meet the following criteria:
- You must live in England, Wales or Northern Ireland, or have done business in one of these countries in the last three years
- Your debts add up to less than £50,000
- You are not a homeowner
- Your assets are worth less than £2,000
- You can own a vehicle worth up to £4,000 in addition to this
- You have less than £75 a month left after all of your living costs
Read our guide to find out if you qualify for a DRO.
How does a DRO work?
You must apply for a DRO through an organisation approved by the Insolvency Service.
When your DRO is approved:
- Payments to your debts are put on hold for 12 months
- The people you owe cannot take any action to collect the debts during this time
- Interest and charges can still be added
Debts included in the DRO are written off after 12 months if your situation is not better.
The people you owe can pursue the debt again if your DRO is cancelled during the 12 moths.
- They can add interest and charges
- You would need to think about other repayment options
Your DRO stays on your credit file for six years from the approval date.
How much does it cost to get a debt relief order?
There is no fee to apply for a DRO.