Debt Relief Order
A Debt Relief Order (“DRO”) is a formal debt solution set up through an approved intermediary. These are intended for people with low income and few assets.
To be eligible you must:-
Be unable to pay your debts.
Have debts of less than £20,000.
Have less than £50 per month available when you have paid your living expenses.
Not be a homeowner.
Have assets with a value of less than £1,000.
Not be subject to any other insolvency procedure.
Have lived or worked in England or Wales for the last three years.
A DRO, which currently costs £90, will cover all qualifying debts including credit cards, utility charges, council tax, benefit overpayments, hire purchase agreements and business debts.
You will still be responsible for paying those debts that cannot form part of a DRO and these include:-
Court fines and confiscation orders.
Child support and maintenance.
Student loans.
Social fund loans.
Compensation for death and injury.
A DRO will last for one year after which all qualifying debts included in the order are written off.
- Unsecured debts will be written off and no financial contribution required if your income is sufficiently low.
- Whilst a DRO is in force there is no requirement to make payments to existing creditors.
- Debts are written off upon completion of the DRO.
- You cannot borrow more than £500 without disclosing that you are subject to a DRO.
- You cannot be a director of, or manage, a limited company unless you have the permission of the court.
- You must continue to trade in the same name or else disclose the fact you are subject to a DRO if you trade under a different name.
- Your details will appear on the Individual Insolvency Register maintained by the Insolvency Service and will stay on your credit rating for six years.
Blades Insolvency Services does not act an as approved intermediary. Should a DRO be appropriate to your situation we can assist you with finding a suitable provider.