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What is a debt relief order?

A debt relief order (DRO) is a way of having debts written off so that you can get a fresh start.  You may qualify if:

  • You have got less than £50 per month spare income after allowing for your normal household spending.
  • Your assets are worth less than £300 (or no more than £1000 for a single domestic vehicle).
  • Your total debts add up to £15,000 or less.

A debt relief order puts all your debts on hold for 12 months. During the 12 months, the companies you owe money to cannot take any action against you to make you pay your debts. When the 12 months are over, the debts included in the debt relief order will be written off, as long as you still fit the DRO rules. It costs £90 to apply. This is a fixed fee charged by the government’s Insolvency Service.

My Money Steps will tell you if you can apply for a debt relief order. Start My Money Steps to find out.

 

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