What is a DRO (Debt Relief Order)?
It can be one of the quickest ways to give yourself a fresh start.
A Debt Relief Order (DRO) is a personal insolvency process. It provides you with legal protection from your creditors and your debts are written-off after one year.
DROs are one way to deal with your debts if you owe less than £20,000, don’t have much spare income and don’t own your home.
If you qualify for a DRO:
Qualifying criteria for a DRO
To qualify for a DRO you must meet all the criteria below:
If you apply for a DRO, you must abide to the following restrictions
These restrictions usually last 12 months. They can be extended if careless or dishonest behaviour caused your debt problem. For example, you lied to get credit. The official receiver will tell you if they should be extended. To extend them, you’ll be asked to agree to a ‘Debt Relief Restrictions Undertaking’. The court can issue a ‘Debt Relief Restrictions Order’ if you don’t agree
What you still have to pay
- your rent and bills
- certain debts that aren't included on your DRO e.g students loans, court fines
Whilst you have a DRO you will still have to pay:
DROs can be cancelled if:
- your finances improve
- you don’t co-operate with the official receiver - eg you don’t give them the information they ask for
If you get new debt after your DRO is approved you could:
- get a bankruptcy order
- be prosecuted if you don’t tell new creditors about your DRO