A Debt Relief Order (DRO) is a formal insolvency process that can help you deal with your debts if you owe less than £20,000, don’t own your home and have a monthly surplus of less than £50. You also can't have assets or a car worth more than £1,000.
A Debt Relief Order, or DRO, is a formal debt solution and is most suited for those who own little assets of value and have a low level of income. It is sometimes viewed as an alternative to Bankruptcy or IVA but the strict criteria can be difficult to meet.
An application must be made to the Official Receiver’s office through an authorised intermediary. The Official Receiver’s fee is £90. Intermediaries are not allowed to charge you a fee for submitting your DRO application to the Insolvency Service.
There are some debts that cannot be included in a DRO and will still require repayments throughout and after your plan is completed.
Debts included in a DRO | Debts excluded from a DRO |
Arrears on household bills | Student Loans |
Credit Card Debt | TV Licence Arrears |
Payday Loans | Child Maintenance Service Arrears |
Overdrafts | Criminal Fines |
Store Cards | Social Fund Loans |
Hire Purchase (HP) | |
Items bought on finance | |
Loans from friends and family |