Debt Relief Order FAQ

Find answers to frequently asked questions about DROs

A Debt Relief Order could help you to:

  • Suspend your unsecured debts for one year
  • Write them off afterwards, if your circumstances don’t improve
  • Avoid going to court

Have any questions?

Call us on 0800 970 7673 or fill in our simple form to recieve a no obligation call back from on of our friendly, experienced advisers.

Fees & Key information

Find out more about the fees involved with each debt solution.

Download the Insolvency Service guide to dealing with creditors.

Find out if you qualify for a DRO

Tell us about your situation

Tell us about you

Need debt advice?

Call us on 0800 970 7673or fill in our simple form to receive a free no obligation call back from one of our friendly, experienced advisers.

Frequently asked DRO questions

What is a DRO?

A Debt Relief Order (DRO) is an insolvency solution for people with limited finances. It involves suspending your unsecured debt repayments for a year, after which they'll be written off if your circumstances haven't improved.

Many people who want to apply for bankruptcy find they simply can't afford the fees (currently up to £700). A DRO costs just £90, which can be paid in instalments if necessary.

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Am I eligible for a DRO?

To qualify for a Debt Relief Order, you must meet the following criteria:

  • You must have unaffordable unsecured debts amounting to no more than £15,000
  • Your monthly disposable income (after essential living costs) must come to less than £50
  • You must have assets worth less than £300 in total (or a car worth less than £1,000)
  • You must not have had a Debt Relief Order in the last six years
  • You must not be going through any other insolvency proceedings
  • You must have been living or carrying on business in England or Wales for the last three years.
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What's the difference between a DRO and bankruptcy?

The end result is the same - your unmanageable unsecured debts will be written off on successful completion. However, a DRO is designed specifically to help people with a very low disposable income and limited assets.

Unlike bankruptcy, you won't have to go to court to arrange a Debt Relief Order. Normally, you can arrange a DRO over the phone - call us on 0800 970 7673 or fill in the callback form at the top of this page to see if you qualify.

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What does it cost?

The only cost associated with a DRO is a £90 application fee to the Insolvency Service - and that's all you'll pay with us. However, some companies may charge an additional fee for the service. Avoid any company trying to charge more than £90 for a Debt Relief Order.

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Can it help with secured debts?

Secured debts can't be included in a DRO, but by freezing (and then writing off) unsecured debts, it can help to make your secured debt repayments affordable. If you continue to struggle with your secured debt repayments during or after your Debt Relief Order, you should seek further advice.

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How can I apply for a DRO?

First of all, talk to us about whether a DRO is right for you. If we think it is, we can take care of your application for you.

If we don't think a DRO is right for your circumstances, we'll help you find a more appropriate solution for tackling your debts.

A Debt Relief Order application must be made through an approved intermediary.

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Can I get a Debt Relief Order if I'm unemployed?

Yes. Your employment status isn't considered when you apply for a DRO. Because it doesn't involve regular payments, a regular income isn't an important factor in your application - so as long as you meet all the eligibility criteria, you could qualify.

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What are the disadvantages of a Debt Relief Order?

A Debt Relief Order will be recorded on your credit history for six years after it starts, making it more difficult to get further credit during this time.

However, just remember that not getting the help you need could have even more serious consequences in the long run.

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