DRO Debt Solution
A Debt Relief Order (DRO) can help you write off debt which you are unable to pay in a reasonable amount of time if you have a low amount of debt and few assets.
What is a DRO?
A DRO could help you by suspending any payments and writing off the debts after 12 months. A DRO is a much cheaper option to bankruptcy and costs just £90.
A DRO is not available if you live in Scotland, A Minimal Assets Process is a similar solution.
To be eligible for a DRO you need to meet the following criteria:
- You need to reside in England. Wales or Northern Ireland, or have done business in one of these countries in the last three years
- Your debts add up to less than £20,000
- You’re not a homeowner
- Your assets are worth less than £1,000 – though you can own a vehicle worth up to £1,000 in addition to this
- You have less than £50 a month left over after you’ve paid all of your living costs.
Benefits of a DRO
- Debts included in the DRO will be written off within 12 months
- No repayments will be made as long as your circumstances don’t change
- Creditor contact will stop once the DRO is in place
Considerations of a DRO
- Once your DRO is in place, you are bound by formal insolvency proceedings and your credit rating will be affected
- Your details will be recorded on the Insolvency Register
- If your circumstances change within the 12 months your DRO could be revoked