Debt Relief Order

You should first consider all the debt help solutions available to you. Should a Debt Relief Order (DRO) be the best option for your circumstances you will be referred to an approved intermediary. They will check that your situation fulfils the criteria and help you complete the online form, which will then be submitted to the official receiver who will make the order, if appropriate. To qualify for a Debt Relief Order:

• Your debts must not exceed £15,000;
• Your assets must not exceed £300 (assets such as clothing, furniture and a vehicle worth less that £1,000 do not count); and
• Your surplus income must not exceed £50 a month, after paying for your essential living costs

A Debt Relief Order will last for 1 year, once it has ended your debts are written off (with certain exceptions), and none of the creditors listed in the DRO can take further action against you without the court's permission. The fee is currently £90 and can if necessary be paid in instalments, but it must be paid before the application for a DRO can be made.

There are, however, some things to seriously consider before applying for a DRO:

• Your DRO will be entered on a public register.
• You will remain liable to pay certain debts such as student loads, fines and some debts arising from family proceedings.
• You can't have a DRO if you own a property, even if it has no equity value.
• You can't have a DRO if you have already had a DRO in the last 6 years.
• You can't have a DRO if you are subject to bankruptcy restrictions, or if you have an existing bankruptcy order or IVA.
• Your employment may be affected.
• You can't act as a director of a company or be involved in its management unless you have permission from the court.
• You will be committing an offence if you get credit of £500 or more without disclosing that you are subject to a DRO.
• Your DRO could be withdrawn if you don't co-operate with the official receiver during the 12 months it is in force.
• You may have a debt relief restrictions order made against you for between 2 and 15 years if you act irresponsibly, recklessly or dishonestly. This would place restrictions similar to those of a DRO.

For further debt assistance and debt-relief information call our Debt Helpline on 0800 731 2433 to discuss your options.