A Debt Relief Order is a way to deal with problem debt and is specifically designed for people with few assets and a relatively low level of debt. You may be eligible for a DRO if you are not a homeowner and you have:
- Total unsecured debts of less than £15,000
- Less than £300 in assets, (not including a car worth no more than £1,000)
- Less than £50 in surplus income per month.
If the criteria are met, a DRO order will be a low-cost alternative to bankruptcy. The creditors’ cannot pursue the debts except through the DRO and it freezes your debt repayments and interest for 12 months. If your financial situation hasn’t changed at the end of this period then your debts will be written off.
If the criteria are not met then you will need to consider the other options that are available.