Debt Relief Order
DRO’s provide debt relief for Personal Debt and other Debt, subject to some restrictions. They are suitable for people who do not own their own home, have little surplus income and assets and who have less than £15,000 of debt.
The fee for a DRO is currently £90.
You can obtain a DRO by seeking Debt Advice from an approved Debt Advisor or the CAB, they will confirm whether a DRO is appropriate and help you complete the forms. DRO’s are applied for online and upon receipt of the application and fee the Official Receiver will look at your application and either accept it, reject it or decide to seek further information.
If the Order is accepted the Official Receiver will:
• Send you notice of the making of the DRO together with details of the duties that are imposed on you whilst the DRO is in force.
• Send notice of the DRO to each of the creditors owed a debt covered by the DRO
• Make an entry on the electronic Individual Insolvency Register (EIIR) showing your details and the fact that a DRO has been made against you.
To apply for a DRO you must meet certain conditions:
• You must be unable to pay your debts
• You must owe less than £15,000
• Disposable income must not exceed £50 per month after deduction of normal household expenses
• You must be domiciled in England or Wales
• You must not have been the subject of a DRO within the last 6 years
• You can own a car to the value of £1000 but the total value of other assets must not exceed £300.
• You must not be involved in any formal insolvency procedure ie IVA, Bankruptcy, when you apply
A DRO lasts for 12 months and at the end of that period, provided your circumstances have not changed, you will be freed from the debts that were included in the Order.
More information on Debt Relief Orders can be obtained from:
