Debt Relief Order

A debt relief order (DRO) is a form of insolvency relief for individuals with qualifying debts of £50,000 or less, assets of £2,000 or less (excluding a vehicle worth up to £4,000), and a surplus income of no more than £75 per month. Introduced by the Tribunals, Courts and Enforcement Act 2007, DROs provide a route to debt relief without the costs of bankruptcy.

In practice

DROs are applied for through an approved intermediary (typically a debt adviser at a recognised organisation) and made by the Official Receiver. During the 12-month moratorium period, creditors cannot enforce their debts. At the end of the moratorium, qualifying debts are written off. DROs appear on the individual insolvency register for 15 months. They are not available to individuals who have had a DRO in the previous six years.