Debt Relief Order

What is a Debt Relief Order?

A Debt Relief Order or DRO is like a miniature form of Bankruptcy that came into existence in the United Kingdom on April 6, 2009. It is most suited to people who have lower spare income and little or no assets. Unlike other Insolvency solutions, a DRO is not handled via the Courts. Most free debt advice providers have approved intermediaries who can help you with your DRO application. There is a fee of £90 to arrange a DRO. This can be paid in instalments if need be.

In order to qualify for a DRO your unaffordable debts must not exceed £20,000 and you cannot have more than £1,000 worth of total assets. You can also own a vehicle that is worth no more than £1,000. Your spare income cannot exceed £50 per month after you have paid all personal and household bills.

The full Criteria are as follows:

• You must be a resident of England, Wales or Northern IrelandYour total monthly disposable income is less than £50 per month
• Your total unsecured debts is less than £20,000
• Your total assets are less than £1,000
• You don’t own a car above the value of £1,000
• You have not had a Debt Relief Order in the last 6 years
• You are not currently involved with any other form of insolvency procedure

You will normally find out if you are suitable for a DRO after speaking with a debt advisor who will identify what options are suitable and if a DRO is your beat option. They will be able to point you in the direction of an approved intermediary that can help you put together your DRO application. Examples of DRO providers are your local CAB, StepChange or the Institute of Money Advisers.

After the application has been made and the payment received, an Official Receiver can make the order. If you meet the criteria, the process will go ahead.

IVA.net is owned by McCambridge Duffy who are one of the leading insolvency firms in the UK and Northern Ireland. We offer IVAs and other Insolvency solutions. On our website you will see information on formal and informal debt solutions. Although we do not offer informal solutions, we provide this information so you have a clear overview of the options available for dealing with your debts. If an Insolvency solution is not suitable or you would prefer to take an informal route, we will recommend an appropriate provider, with your permission.

McCambridge Duffy LLP is a Limited Liability Partnership registered in England and Wales. Registered number OC309544

A fee is only payable where further services are requested. Fees will depend on which debt solution you opt for and what your financial circumstances are. All fees will be explained in detail and discussed prior to commencement of any debt repayment plan. Repaying debt over a longer period may increase the total amount to be repaid.

All debt advice is provided by our sister company National Debt Relief.