Debt Relief Order Advice

The debt relief order is a debt solution for individuals who are in debt but have little disposable income. A DRO is only available for individuals who owe £15,000 or less in unsecured debts.

A DRO can only be obtained by an approved intermediary. A DRO can not be applied for without the help of an intermediary.

A DRO costs £100, which is less than an IVA or Bankruptcy.

You can only apply for a DRO once every six years.

You may not include the following debts in a DRO:

• Any fines for an offence
• Child support maintenance
• Obligations from a confiscation order under s1 Drug Trafficking Offences Act 1986
• Student loans
• Certain obligations arising from any family proceedings

• The debtor must not obtain credit of more than £500, without disclosing that they are subject to a Debt relief order
• The debtor may not carry on a business (directly or indirectly) in a name that is different from the name under which they were granted a DRO, without telling all those with whom the debtor does business the name under which they were granted a DRO
• The debtor may not be involved (directly or indirectly) with the promotion, management or formation of a limited company, and may not act as a company director, without the court’s permission

After a DRO is finished, all of the debts listed in the order will be written off and the debtor will no longer have to pay them. However any debts not covered in the order will still need to be paid