Debt Relief Orders. Is it right for you?
A debt relief order is a way to get your debts written off. If you have a low level of debt and have few assets, our specialist DRO team can apply to the Insolvency Service for you.
If you live in Scotland, debt relief order is not an option which is available for you. In Scotland, a Minimal Assets Process (MAP) bankruptcy is a similar solution, but it is important to note that it has different risks, fees and benefits associated with it.
Learn more about DROs:
Is DRO right for me?
DROs are for people with few assets and have a low level of debt. The criteria to apply for a DRO is different depending on where you do you reside:
- If you live in either in England, Wales or Northern Ireland you might be eligible if you owe £20,000 or less and have £1,000 or less in assets (and a car worth £1,000 or less).
- You must also have £50 or less in surplus income per month. A DRO is a cheap alternative to bankruptcy.
- If you live in either in England, Wales or Northern Ireland then you could apply for DRO. If you live in Scotland, read our debt advice in Scotland page for more information on the solutions that are available to you.
How does DRO work?
DRO freezes your interest and debt repayments for at least 12 months. If your financial situation has not changed at the end of this period then your debts will get written off.
How much is the cost of DRO?
DRO costs £90. It is the amount charged by the Insolvency Service to process an application for DRO. You cannot receive any discounts or exemptions like you could with bankruptcy, so the full amount of £90 has to get paid before they submit your application.
The fee can either be paid in instalments over a 6-month period or one lump sum. Once they receive your payment of the fee and you got submitted your application. you cannot get your money back, even if DRO is either rejected or revoked.
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