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Debt Relief Order

What is a Debt Relief Order?

A Debt Relief Order (DRO) is a formal insolvency procedure you can apply for if you are on a low income, cannot afford to pay your debts, and have little to no assets.

In a Debt Relief Order you state your inability to pay your debts and if your circumstances do not change for 12 months any debt included in the Debt Relief Order will be legally written off. None of the creditors listed in the Order will be able to take any action against you. Details of your DRO will be recorded on a public register.

Fill in the form if you would like to find out more about a dro and if it might be a suitable option for dealing with your debts.

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Fees and key info

We are happy to provide you with debt advice only. We only charge a fee if you opt for one of our debt solutions. Fees will depend on which debt solution we provide and what your personal circumstances are. All fees will be discussed prior to commencement of any service or debt repayment plan. Click here to read our fees and key info Please note: From time to time we may refer you to other services providers or charities such as the CAB.

MoneyHelper

If you’d like more information on other sources of free debt help and advice you can visit MoneyHelper – an organisation, backed by government and set up to offer free and impartial advice to those in debt. - Click here to visit MoneyHelper

DRO Advantages and Disadvantages

Debt Relief Order FAQs

Below are some of the most frequently asked questions about Debt Relief Orders that we are regularly asked. If you have any DRO queries that aren't on this page, get in touch and we will be happy to answer them for you.

You must meet the specific criteria in order to apply for a DRO.

For England and Wales:

  • Your total debts must be lower than £50,000.
  • You must have less than £75 disposable income (money left over after paying all household bills and living costs).
  • You cannot have assets above the total value of £2,000.
  • You cannot have a car that exceeds more than £4,000 in value.

For Northern Ireland:

  • Your total debts must be less than £20,000. (This limit is due to change to £50,000 from 8th July 2024).
  • You must have less than £50 disposable income (money left over, after paying all household bills and living costs) (This amount is due to increase to £75 as of 8th July 2024).
  • You cannot have assets above the total value of £1,000 (This limit is also due to increase to £2,000 on 8th July 2024).
  • You also can't have a car above the value of £2,000 in addition to the assets. (There is proposed legislation for this limit to increase to £4,000, but no date has been advised as of yet.)

To apply for a Debt Relief Order, you'll need to speak with a Debt Advisor who will help identify if you meet the conditions to apply. You can speak with one of our advisors to find out if you are elligible. We will run through all possible options with you for addressing your debts. If you do wish to proceed with a DRO, we will signpost you to an approved intermediary who can help with your application.

If you do not qualify for a Debt Relief Order there may be other suitable options that we can help you with. Give our team a call to see what your options are.

Only certain types of debt can be included in a Debt Relief Order.

  • Credit cards, overdrafts, loans
  • Rent, utilities, telephone, council tax
  • Benefits overpayments and social fund loans
  • Hire purchase or conditional sale agreements
  • Buy now - pay later agreements

If you have a hire purchase or conditional agreement you may have to return the goods bought with these loans, unless someone else can pay the instalments. You will not be able to carry on paying for the goods once you have a debt relief order.

Certain types of debt can't be included in a debt relief order. You must pay these separately as action can still be taken against you. These include:

  • Child support and maintenance
  • Student loans
  • Court fines and confiscation orders

If you are interested in applying for a Debt Relief Order or discussing a Debt Relief Order with one of our advisors please call us.

All of the debts that are listed on your order will be written off and you will no longer have to pay them.