Please note, when entering a DRO your details will be added to the Individual Insolvency Register as per CONC 3.9.4.

What is a Debt Relief Order?

A debt relief order (DRO) is one of the debt management options available to you if you are under a debt of £20,000 or less, your disposable income is low, and you do not own your house.

If you get one:

- your creditors can’t recover their money without the court’s permission.
- you’re usually freed (‘discharged’) from your debts after 12 months.

Benefits

• The duration of a DRO is usually 12 months.
• You do not need to make payments in to the DRO.
• Creditors can’t take further action against you.
• The fee for entering into a DRO is only £90.

Risks

• Your credit rating will be effected for 6 years.
• You won’t be able to get a DRO if you have assets over £1,000 or own your own property.
• If your circumstance change and you can afford to make repayments or you fail to co-operate the DRO can be revoked.
• Your information is placed on a register of Insolvencies which is a public register.