The Debt Relief Order is a form of insolvency for people that have certain amount of debt, little disposable income and few assets.
Debt Relief Orders can also be known as DRO or a Debt Relief Restrictions order.
A DRO may be able to help you if you do not own your own home, have few assets and a little available income to pay to creditors. It is a cheaper option than Bankruptcy.
There are strict rules that you have to meet to qualify for a DRO. You must:
- be unable to pay your debts;
- have total debts under £15,000 at the date the application is approved by the official receiver;
- have assets valued at under £300;
- not have a car or motor bike worth more than £1,000;
- have less than £50 per month spare income after household expenses are taken into account;
- live in England or Wales (or lived or run a business in England or Wales in the last three years); and
- not have had a DRO in the last six years.
(If you are already bankrupt or have an individual voluntary arrangement (IVA), then you will not be able to apply for a DRO.)
