Debt Relief Order

A debt solution for people on low income with debts they have little chance of ever repaying

All Debt Written-Off

All debts are cleared provided you remain within criteria for 12 months.

No Payments

You are not required to make any repayments during the DRO period of 12 months.

Full Legal Protection

Credtiors may not chase you for payments

Learn Your Eligibility Today

We'll tell you if an DRO if you are suitable for a DRO.

What is a Debt Relief Order?

A Debt Relief Order (DRO) is a way to deal with your debts if you don’t own your home, don’t have much spare income and your debts are no more than £30,000.

Debt Relief Orders were introduced by Government for people who could not afford the fees to go bankrupt even though it may be in their interests to do so.

They are intended for people on low income and not in possession of significant assets they could use they could use to help pay towards their debts.

If you owe less than £30,000, don’t own your home nor can afford £75 per month towards your debts – you may be able to do a debt relief order.

Applying For A DRO

Your financial situation is assessed by a DRO advisor.

Your debts must total less than £30,000 and your assets must not exceed £2,000 in value.

Some debts and assets are outside of a Debt Relief Order so don’t count towards this limit.

Your DRO advisor will guide you through the application and you’ll only pay a £90 fee to the Insolvency Service.

Being in a Debt Relief Order

When the DRO is accepted you enter what is called the ‘DRO period’ which lasts 12 months.

During this time you don’t make any payments and those you owe cannot take any action to recover any included debts.

When DRO period completes all debts are written off.

If during the DRO period you cease to met criteria – your DRO may be cancelled and you would need to address your debts another way.

Which Debts Are Covered?

Most debts are written off by a Debt Relief Order.

Loans & Overdrafts

Store & Credit cards

Benefits overpayments

HMRC & Council tax arrears

Debts with a Court Judgment

Rent, Gas and Electricity arrears

Catelogues & Buy now – pay later agreements

For other debts contact Financial Guardian for clarification

Certain debts cannot be included in a Debt Relief Order DRO such as; criminal court fines; debts obtained by fraud; child support arrears and most student loans.

DRO Benefits

Once your Debt Relief Order has been accepted, you will benefit from:

No repayments

There are no payments to make into the DRO nor towards your debts; nor any fees.

100% of debt is written off

When the DRO period completes all included debts are legally written off.

A sense of control

A DRO allows you to regain control of your money as you look towards debt freedom

Legal protection

Creditors they cannot pursue you for their debt or take legal action during the DRO nor once it completes.

Knowing when you’ll be debt free

Provided you continue to meet DRO criteria for 12 months – you’ll be relased from all the included debts.

DRO Considerations

As with any insolvency process there are consequences of entering into an Debt Relief Order. These include:-

Impact on credit rating

Your participation in a DRO is recorded on your credit report which affects your ability to get credit in the medium to long term.

All adverse information is retained by credit reference agencies for 6 years.

Changes in your circumstances

If your circumstances change during the DRO period, you have a legal obligation to inform the Insolvency Service.

If you no longer meet the criteria for a DRO, it can be cancelled and you’ll have to deal with your debts in another way. You remain liable for the debts in full until the DRO successfully completes.

Not private

A DRO is recorded and entered onto a public register but someone would need to be specifically looking for you on it to find you.

It is removed 3 months after the DRO ends.

Personal restrictions

The following conditions apply while you are in the 12 month DRO period. Should they be broken, your DRO may be terminated and you’ll return to owing your debts in full.

You are not allowed to:

  • Attempt to take out £500 in credit without informing the credit provider of your DRO.
  • Be or act as the director of a company.
  • Create, manage or promote a company without the court’s permission
  • Manage a business without telling those you do business with about your DRO.
  • Open a bank account without telling the bank or building society about your DRO.
The DRO restrictions usually last 12 months. They can be extended if reckless or dishonest behaviour caused or contributed to the extent of your debt problems.

Not all debts qualify

Debts that can go into a DRO are called qualifying debts. They include:

  • Credit cards, overdrafts and loans.
  • Arrears with rent, utility bills, telephone bills, council tax and income tax.
  • Benefits over-payments.
  • Hire purchase or conditional sale agreements.
  • Some buy now – pay later agreements.
  • Business debts.

Debts that can’t go in a DRO include:

  • Any debts obtained by fraud.
  • Magistrates court fines and confiscation orders.
  • Child support and maintenance
  • Student loans
  • Social fund loans
  • Compensation for death and injury.
These debts don’t count towards the limit.If you’re unsure whether a debt would be covered by a DRO, contact us.

Not available for homeowners

This is because DROs were created to be a lower cost and simpler alternative to bankruptcy – where no assets need to be considered.
Debt Relief Orders are not available in Scotland, the equivalent is Minimal Asset Process Bankruptcy.
[exteral link to Scotish Insolvency Service]
We are not currently an approved DRO intermediary.
We offer a no obligation consultation to determine your suitability and will refer you accordingly.