Debt Relief Order (DRO)

A DRO is a formal debt solution whereby you cease to make payments towards your included debts for a period of 12 months.

If after this time your financial position has not changed and you still can’t make any contributions towards your debts, all of your debts are written off in full.

So a Debt Relief Order could be ideal if you cannot afford to make any repayments towards debts that are eligible to be covered by a DRO.

To be eligible for a DRO you must meet the following criteria:

• Owe less than £50,000, and
• Have less than £2,000 worth of valuables or/and assets combined,
• Must own a vehicle worth less than £4,000, and
• You do not own your home, and
• Are not currently bankrupt, or in an IVA and have not had a DRO in the past 6 years, and
• You do not have enough money left over each month to repay your debt commitments.

• Make no repayments – make no repayments towards the debts included in your DRO.
• Lasts for 12 months – debts covered by your DRO are written off after only 12 months.
• No more charges or interest – charges and interest are frozen.
• Stop creditor contact – legal protection stopping your creditors taking any further action against you.

Below are the main disadvantages of entering into a DRO. To learn more and see how a DRO could impact you, please get in touch.

• Credit rating affected – as with any formal debt solution, your credit rating will be affected for 6 years.
• Public register -details of your DRO will be entered onto a public register.
• Can’t include all debts – not all debts can be included in a DRO – any debts not covered will need to be dealt with separately.
• Not available to homeowners – if you own your own home you will not be eligible for a DRO.