Debt Relief Order (DRO)
With a Debt Relief Order, you could have:
- Unaffordable debts written off after a year
- Protection against action from lenders
- An alternative to bankruptcy for low-earners - which will affect your credit rating in the medium to long term and may make obtaining credit more difficult or more expensive
Help with completely unaffordable debts
If you simply can't afford to repay your unsecured debts, a Debt Relief Order could help by suspending your payments and writing off the debts after a year.
Protection against action from lenders
Once your DRO has been agreed, your lenders can't take any further action against you.
Costs less than bankruptcy
Bankruptcy can cost up to £680 up front. A DRO is a much cheaper alternative for people on a low income - all it costs is a one-off non-refundable £90 application fee.
How a DRO works
A Debt Relief Order is a solution for people who can't afford to repay everything they owe. It works a bit like bankruptcy, but it's only available to people on a low income.
Because it's aimed at people in difficult financial circumstances, it costs much less than bankruptcy - just a £90 application fee, which can be paid in instalments if necessary.
Once your DRO has been agreed, all payments on your unsecured debts will be suspended for a year. You will be protected against any further action from your lenders during this time. If your circumstances haven't improved by the end of the 12 months, your unaffordable unsecured debts will be written off.
Is it right for me?
A Debt Relief Order could be very helpful if you're in difficult financial circumstances, can't afford to repay your debts and can't afford bankruptcy.
It's simple: if your situation doesn't improve in the 12 months after your DRO is issued, the unsecured debt you haven't repaid will be written off.
However, you will only qualify for a DRO if you meet certain criteria. For example:
- You must owe less than £20,000 in total (unsecured debts)
- Your monthly disposable income must come to less than £50
- Your personal belongings (assets) must come to less than £1000 in total - not including a car, which can be worth up to £1,000
- You must have lived in England or Wales in the last three years
If you're not sure whether you qualify, call us on 0161 669 8925 and we'll talk you through your options.
A DRO could give you a much-needed way out of debt, but do keep in mind that your credit rating will be affected in the medium to long term, and borrowing more money could be very difficult in this time.
Your details will also appear on the Individual Insolvency Register for three months after the DRO ends.
- 0161 669 8925
- 0161 669 8925