A Debt Relief Order (DRO) is a solution to deal with personal debts you cannot pay.
You apply through an approved debt adviser and have to meet certain eligibility criteria.
A DRO normally lasts 12 months. If approved, you stop making payments towards the debts (and interest) listed in the DRO during that time. After the 12 months, you will not have to pay these debts anymore.
A DRO stays on your credit reference file for 6 years from the date it was approved, which is the same for other debt relief options.
You have to contact an approved debt adviser to apply for a DRO.
The debt adviser will check if you meet the eligibility criteria – free of charge. They will assess your situation and look at your income, debts, and belongings.
You are eligible for a DRO if you:
- Owe less than £30,000 in total
- Have savings or valuable items worth less than £2,000 in total
- Own a vehicle worth less than £2,000 (if you were to sell it today)
- Do not have enough money left at the end of the month to make your debt repayments
- Have lived or worked in England and Wales in the last 3 years
- Are not currently bankrupt, have an interim order or an individual voluntary arrangement
- Have not had a DRO in the last 6 years
If you do not live in England or Wales
You cannot apply for a DRO if you live in Scotland or Northern Ireland. Please speak with a debt adviser to find out what options are available to you.
We are not an approved organisation and we cannot help clients apply for a DRO, However you can gain further information from Money Helper by clicking here.
