Debt Relief Order (DRO)
What is DRO suitable for?This form of debt assistance might be the best debt help for those who have a relatively low level of debt (less than £20,000) and who own only limited assets. Our debt expert’s opinion on the pros and cons…
Advantages of DRO Debt Relief Order
- Once your DRO order is approved, you’ll no longer be required to make any further payments to your creditors.
- If your assets total to £300 or less, and your vehicle to £1000 or less, you won’t have to sell anything to contribute toward your debts.
Disadvantages of DRO Debt Relief Order
- Your details will be stored on an online database, which is publicly searchable. You’ll also remain on the database for three months following the DRO (e.g. for a total of approximately 15 months).
- A DRO debt will remain on your credit history for six years after approval. During this period, you’ll likely find it more difficult to secure credit.
- You won’t be able to apply for a DRO if you’ve previously used another insolvency debt solution in the previous 6 years.
FAQs – DRO Debt Relief Order
I’m self-employed – can I have a DRO Order?
I’ve heard that if I have more than £50 spare the Insolvency Service will reject my DRO application – is this true?
I declared myself bankrupt two years ago – can I apply for a DRO Order?
- Have an undischarged bankruptcy
- Have previously had a DRO order in the past 6 years
- Are currently in an IVA
I’m due to retire soon. Part of my retirement will involve lump pension sums. What should I do?
I receive a student loan – does this count as income?
I’m due to return to work from maternity leave – should I apply for my DRO Debt now?
I receive money from partners/family/friends – how does this affect a DRO Order?
I drive a car that belongs to someone else – what will happen to this car?
How long will I wait for approval of my DRO?
What are the chances of the DRO application being rejected?
Will my DRO Order affect my partner’s credit record?
What information will I need about my debts?
- A list of current creditors
- The amount owed in each case
- The reference/account number for each
Will my DRO Order write off debts?
- Arrears on household bills such as rent, gas, electric, telephone and council tax
- Consumer debts (e.g. credit card debt, payday loans, and overdrafts)
- Benefit overpayments, unless they were due to fraud
- Hire Purchase (HP) or conditional sale agreements
- Items bought on finance
- Loans from friends or family
Do I need a new bank account?
How much does it cost to set up a DRO Order?
I used my credit card recently – will this affect the chances of my DRO Debt being approved?