Debt Relief Order
What is a Debt Relief Order?
Usually referred to as a “DRO” – may be a solution for you if:
- You are NOT a homeowner
- Do not possess total assets of more than £1000
- If you have debts less than £20,000
- You have no more than £50 left over after all essential expenses
Benefits of a DRO
- Unaffordable debts written off after a year
- An alternative to bankruptcy for low-earners
- Protection against action from lenders
How Much Does a DRO Cost?
With a Debt Relief Order there is a one off application fee of £90, there are no monthly charges. This fee is paid by you to the Insolvency service
How Long Does it Last?
The Debt Relief Order lasts for a period after 12 months, after this time, you will be free from the debts included in the Order
Where can I get help with a DRO?
If we think you fit the criteria for a DRO we suggest you contact the Citizens Advice Bureau who will help you complete the paperwork at no cost.
What is the Effect on My Credit Rating?
The DRO will remain on your credit file for 6 years and it will be difficult to borrow more money during this time.