A Debt Relief Order is a formal debt solution for individuals with low disposable income and minimal assets. A DRO is used as an alternative to bankruptcy. This solution is aimed at people on a low income and therefore it costs less than bankruptcy. The application fee is £90 and can be paid in instalments.
- If your position remains unchanged, your debts will be cleared in 12 months.
- Low application fee of £90.
- Creditor calls/correspondence stopped once the order is accepted.
- Only able to obtain a DRO once every 6 years.
- You are unable to apply if you are a homeowner.
- The DRO will appear on a public register for 12 months.
- The DRO will adversely affect your credit rating for 6 years.
- Your assets need to be worth less than £1,000.
- 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 have £50 or less left over at the end of every month.
- You can only apply for a DRO if you live in England, Wales or Northern Ireland.
- Must not be involved in any other formal insolvency procedure.
- Be able to afford the £90 application fee.
- Do not own a home.
Please note: Debt Support Service does not administer Debt Relief Orders