A Debt Relief Order is a formal debt solution available to individuals who have a small amount of money left to offer towards their debts, have few assets and a relatively low amount of debt.
You may be eligible for a Debt Relief Order if you owe less than £50,000 in total to your creditors, you have £75 or less left over each month after your essential bills and outgoings have been paid, your car (if you have one) is worth less than £4000 and your other assets don’t exceed a total value of £2000.
A Debt Relief Order lasts for 12 months, and after this time you are released, and your debts written off. You don’t have to pay anything towards your debts and there’s no fee to apply.
What debts can be included in a DRO?
Most debts are included, but the following won’t be:
What are the advantages and disadvantages of a Debt Relief Order?
Advantages:
Disadvantages:
How can I apply for a Debt Relief Order?
You can only make an application for a DRO via an Approved Intermediary.
Get debt advice and apply online using our Online Debt Advice tool or call us on 01925 599400.
