DEBT RELIEF
ORDER

A Debt Relief Order (DRO) is a solution for an individual to help deal with their debts which they cannot repay. These are available in England, Wales and Northern Ireland. You will be given an Official Receiver upon approval, but there is a strict criteria, which is as follows,

 Criteria for a DRO within England and Wales:

  1. Debts must be below £30,000
  2. You don’t own your own home
  3. You don’t have any other assets over £2,000, including a vehicle
  4. You’ve not had a DRO within the last 6 years
  5. You’ve lived in England or Wales for the last 3 years
  6. Your affordability once all your priority bills and day to day costs is less than £75

Criteria for a DRO within Northern Ireland:

  1. Debts must be below £20,000
  2. You must not be named as owner on a property or land
  3. You don’t have any assets over £1,000 including a vehicle
  4. You’ve not had a DRO within the last 6 years
  5. You live in Northern Ireland
  6. Your affordability once all your priority bills and day to day costs is less than £50

BENEFITS OF A DRO:

One off fee:
There is a one off £90 fee to apply for a DRO. This must be paid in full before you submit your application, but it can also be paid in instalments. Once this is paid you won’t need to make further payments into the solution. It’s also important to consider if your application is rejected you wont get this money back.

Timescale:
Usually within 12 months your debts will be written off.

Legally Binding:
Once approved your creditors will have to cease contact and will no longer be able to apply interest.

CONSIDERATIONS OF A DRO

Changes to Circumstances:
If you have any changes to your circumstances within the 12 months the DRO is active, the solution could be revoked if you no longer meet the criteria.

Insolvency Register (IIR):
You will be placed onto the Individual Insolvency Register (IIR) upon approval of the DRO. This is a public register, and this is done so that there is a transparent record of all individuals that are insolvent. Details can stay on here for up to 15 months after the solution has finished.

Termination:
DRO’s can be terminated if the Official Receiver discovers any intentional misleading on the original application.

Excluded Creditors
Not all debts can be included within a DRO such as:

– Child
– Maintenance arrears

– Student Loan
– Budgeting and Crisis
– Loans
– Secured debts against anything you own
– Court Fines

If you have any questions about the above or would like further guidance our team is here to help.

*Please note, entering into a debt solution can affect your credit rating for at least 72 months, fees may be payable if ongoing services are provided. A follow up call will be required to confirm details outlined in your enquiry, at which point we will be able to discuss which solutions you qualify for.