Debt Relief Order
Debt Relief Orders (DROs) were introduced on 6 April 2009 to help individuals with low income, minimal assets and relatively modest levels of debt. A DRO can provide a practical solution for people who do not own their home and are unable to repay their debts.
To qualify for a Debt Relief Order, an individual must have less than £30,000 in unsecured debt, limited assets and very little disposable income.
Once a DRO is approved, it remains in place for 12 months. During this period, creditors are unable to take action to recover the debts included in the order. If the individual’s financial circumstances remain unchanged throughout this time, the debts are written off at the end of the 12-month period.
Debt Relief Orders do not involve court proceedings. They are administered by the Insolvency Service and applications must be submitted through an approved intermediary, such as a qualified debt adviser.
Eligibility
You may be eligible for a Debt Relief Order if you meet the following criteria:
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Your total unsecured debts are less than £30,000
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You have less than £75 per month in disposable income
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Your total assets are worth less than £2,000
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You have lived or worked in England or Wales within the last three years
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You have not had a Debt Relief Order within the last six years
A DRO can offer individuals the opportunity to address unmanageable debt and move towards a more stable
financial future.