debt
DRO Debt Relief Order
A Debt Relief Order (DRO) can help you write off debt which you are unable to pay in a reasonable amount of time if you have a low amount of debt and few assets.
What is DRO
A DRO could help you by suspending any payments and writing off the debts after 12 months. A DRO is a much cheaper option to bankruptcy and costs just £90. A DRO is not available if you live in Scotland, A Minimal Assets Process is a similar solution. To be eligible for a DRO you need to meet the following criteria:
Bankruptcy fees vary depenaYou need to reside in England. Wales or Northern Ireland, or have done business in one of these countries in the last three yearsding on where you live in the UK
Your debts add up to less than £30,000 (£20,000 in Northern Ireland)
You’re not a homeowner
Your assets are worth less than £2,000 – though you can own a vehicle worth up to £2,000 (assets less than £1,000 and vehicle worth up to £1,000 in Northern Irelend)
You have less than £75 a month left over (£50 for Northern Ireland) after you’ve paid all of your living costs.
Benefits
Debts included in the DRO will be written off within 12 months
No repayments will be made as long as your circumstances don’t change
Creditor contact will stop once the DRO is in place
None of the creditors listed in the DRO application can take any action against you without the court’s permission
Considerations