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Debt Relief Order (DRO)

A Debt Relief Order (DRO) is a scheme designed to help low-income families recover from debt without costs spiralling out of control. DROs are an alternative to bankruptcy.

What is a DRO?

DROs were introduced by the Government in 2007 to help those with few assets and relatively small debts recover financially. They have since proven to be a popular insolvency measure, particularly amongst those with low incomes.

Any DRO must be made with the assistance of an ‘intermediary’ approved by the Insolvency Service. This can be a solicitor, a qualified accountant or insolvency practitioner, a debt advice agency or a debt charity.

How does a DRO help?

A DRO stops your creditors from taking any action against you for 12 months. If your financial position improves in this time, you may be expected to recommence payments of your debts.

If you are still not earning sufficient income within a year, these debts will be discharged and your creditors will not be able to claim any more money from you.

Do I qualify for a DRO?

It is likely that your DRO application will be approved if:

  • You can prove you cannot pay your debts
  • You owe no more than £20,000
  • Your assets are not worth more than £1,000
  • Your monthly disposable income after household expenses is less than £50
  • You live in England or Wales.

There are additional criteria you may need to meet, and our team will be able to tell you if you qualify.

Learn more about obtaining a DRO

Bennett Jones can tell you all about the application process, as well as what a DRO entails. We will also refer you to a DRO intermediary who can help you obtain a DRO if this is your chosen solution for your debt problems.

Give us a call today on our Freephone number 0800 7710 073. We’ll provide you with useful, practical, confidential information completely free of charge, showing you the best way to get back on your feet. You can also leave a message via our contact form.

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