Debt Relief Order

A Debt Relief Order is a low-cost alternative to bankruptcy, for those who are struggling with debt, who do not own a home or valuable assets and have a low surplus income and total unsecured debts less than £20,000. A DRO is obtained from the Official Receiver, who is an officer of the bankruptcy court and a civil servant. DROs must be applied for through an authorised debt adviser, who will assist you in completing the paperwork and assessing your eligibility.

In a DRO, you are usually discharged from your debts after 12 months

During this time, you pay nothing towards them

If, at the end of the year, your circumstances have not changed, your debts are written off

DROs are a formal debt solution, but you do not need to appear in court

DROs are available in England, Wales, and Northern Ireland

If you live in Scotland, you might consider a Minimal Assets Process (MAP)

DROs are generally used as a last resort for those struggling with debt

You cannot apply for a DRO yourself, you must first consult a DRO advisor, who works on your application with you

The cost for a DRO is £90

DROs do not cover all types of debt, but they do cover unsecured debt such as credit cards, overdrafts, payday loans, and arrears in rent or bills