Debt Relief Order
A Debt Relief Order (DRO) allows you to put your debts on hold for 12 months. If your situation doesn’t change after this, your debts will be written off.
Some debt solutions have fees. We’ll always explain any costs upfront with no pressure to go ahead.
You can find free debt advice and options to manage your debts from MoneyHelper. You can visit their website at moneyhelper.org.uk to find out more.
What is a DRO?
A DRO is an alternative to bankruptcy if you have a low income, few assets and owe less than a £50,000.
You won’t make payments to your debts for 12 months if your application is accepted. During this time, creditors can’t take legal action against you or add interest and charges.
Your debts will be written off at the end if your situation doesn’t improve significantly.
How it works
Here’s what the process usually looks like:
We listen
We'll ask about your income, spending, debts and any assets you own to understand your financial situation.
We advise
We’ll discuss your options and help you understand if a DRO is suitable for you.
You apply
If you’re eligible, we’ll pass you over to our trusted partners will help you prepare and submit your DRO application.
Your DRO starts
If your application is approved, your debts are frozen for 12 months. They’ll be written off after that if nothing has changed.
Benefits and considerations
Here’s an overview of the key benefits and things to be aware of:
No monthly payments
You don’t make any monthly payments to your debts.
If your situation gets better
If your financial situation improves while your debts are on hold your DRO may be revoked and you’ll need to find an alternative way to deal with them.
Debt write off
Your debts are put on hold for 12 months and written off if your financial situation doesn’t get better.
No fees
It’s free to apply for a DRO.
Credit rating impact
Your credit rating will be affected which could impact future borrowing.
Insolvency register
Your details will be added to the Individual Insolvency Register.
FAQs
A DRO might be suitable if:
- you owe less than £50,000,
- you have less than £75 left each month after essential living costs,
- you don’t own a home and have assets under £2,000,
- your vehicle is worth less than £4,000,
- you haven’t had a DRO in the last 6 years,
- you live in England, Wales or Northern Ireland.
You can include most unsecured debt like credit cards, loans, overdrafts, and buy now pay later agreements in a DRO.
It’s free to apply for a DRO but you’ll need to apply through a specialist DRO adviser called an approved intermediary.
Yes. A DRO will stay on your credit file for 6 years, which may make it harder to get credit during that time.
You must inform the Official Receiver if your income or assets increase significantly during the 12-month moratorium. Your DRO could be revoked depending on how much your circumstances have changed.
Start with a simple conversation
Call us on 0161 804 2923 for confidential advice on your options.
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