Do I qualify for a Debt Relief Order (DRO)?

In the past, struggling borrowers with very low incomes have had few choices when it comes to tackling unmanageable debts. But last year`s introduction of Debt Relief Orders (DROs) has given more people access to the debt help they really need.

However, like any form of insolvency, you`ll only have access to a Debt Relief Order if you really need it.

What exactly is a Debt Relief Order?

A Debt Relief Order (DRO) is a form of insolvency that`s only available to the most vulnerable borrowers. For a fee of £90, you will be protected against action on your debts by your lenders, and your debts will be written off after a year, assuming your circumstances haven`t improved.

DROs are not obtained through the courts, like bankruptcy. Instead, you`ll need to apply through an `approved intermediary` (a debt adviser) who will help you apply to the Insolvency Service.

How do I know if I qualify?

To qualify for a DRO, the following must apply to you:

• Your debts must be less than £15,000
• Your total assets must not come to more than £300 (not including a car, if you have one, which may be worth up to £1,000)
• Your monthly disposable income (after tax, NI and normal household expenses) must not exceed £50
• You must have lived or carried out business in England or Wales in the last three years.

Does a Debt Relief Order write off all my debts?

Some debts can`t be included in a DRO - for example, court fines, student loans and any secured debts you may have.

That said, secured debts are unlikely to be an issue, as most people with secured debts own assets that would prevent them from qualifying for a DRO.

For more information about DROs, click here or call one of our expert debt advisers on 0800 161 3516.