A DRO is a Debt Relief Order. It is a way to have your debts written off if you have a low level of debt and have few assets. If you qualify for a DRO, our experts can apply to the Insolvency Service for you. Debt Relief Orders are not available if you live in Scotland. In Scotland the equivalent is known as a Minimal Asset Process.
How Does A Debt Relief Order Work?
A Debt Relief Order freezes your debt repayments and interest for one year. If your financial situation hasn’t changed at the end of this period then all of the debts included will be written off.
There are 12 organisations who can submit a debt relief order application for you. These organisations are called ‘competent authorities’.
Debt Relief Order - Pros and Cons
The Debt Relief Order is available for residents in England, Wales and Northern Ireland
Your creditors will no longer be able to take legal action against you
Interest and charges are frozen on your accounts
All of your debts will be written off once the DRO ends
You must have low assets and you can’t be a homeowner
Your credit rating will be affected for 6 years
Your debt level needs to be under £15,000 and your disposable monthly income needs to be low