What is a Debt Relief Order (DRO)?
A Debt Relief Order (DRO) is a formal debt solution designed for individuals with low income, minimal assets, and debts under a specific threshold. It provides legal protection from creditors and allows eligible debts to be written off after 12 months.
Who Qualifies for a DRO?
- You owe less than £30,000 in qualifying debts
- You have less than £75 in spare income each month
- You do not own your home
- You have limited assets (usually under £2,000 total value)
- You live in England, Wales or Northern Ireland
What Debts Can Be Included?
DROs can cover many common types of unsecured debts, including:
- Credit cards and personal loans
- Overdrafts
- Catalogue and store cards
- Utility bills (arrears)
- Rent arrears
- Council tax debt
- Benefit overpayments
Benefits of a DRO
- Debt written off after 12 months with no payments
- Stops legal action and creditor contact
- No setup fees with approved intermediaries
- Creditors cannot pursue you during the 12 months
Things to Consider
- DROs appear on your credit file for 6 years
- You must meet strict criteria
- Cannot apply if you've had a DRO in the last 6 years
- You must cooperate with the approved intermediary
