Debt relief orders are a new form of debt relief designed for people who have less than £15,000 worth of debt.
Very few people actually qualify for a debt relief order (DRO) because they're only available to people who have a disposable income less than £50 per month. People who own any assets, i.e. house, car, property, computer, etc. that are worth more than £300 will not qualify for a debt relief order.
But thankfully there are many other ways to solve a debt problem, and we offer debt relief advice with one of our friendly advisors if we think we can help you.
For more information on debt relief orders please call us on 0800 988 7701 or complete the contact form and we'll call you back.
Who Might Debt Relief Orders (DROs) Be Suitable For?
Individuals with relatively low liabilities, small surplus income and few or no assets and who are possibly not in a position to pay off their debts in a reasonable time.
The proposed criteria will be:
The debtor's total gross assets must not exceed £300; assets including car, etc.
The debtor's disposable income, following deduction of normal household expenses, must not exceed £50 per month.
The debtor is unable to pay his / her debts.
The debtor's total unsecured liabilities must not be more than £15,000.
The debtor must live in England or Wales, or in the last 3 years have been resident, or carrying on business, in England or Wales.
The debtor must not have previously been subject to a debt relief order (DRO) within the last 6 years.
The debtor must not be involved in another formal insolvency procedure at the time of application for a DRO, such as:
An undischarged bankrupt.
A current individual voluntary arrangement (IVA).
A current bankruptcy restrictions order or undertaking.
A current debt relief restrictions order or undertaking.
An interim order.
A current pending debtor's bankruptcy petition in relation to the debtor.
The debtor has not been referred to the DRO procedure by the court as a more suitable method of debt relief.
A current pending creditor's bankruptcy petition against the debtor but the debtor has not obtained the creditor's permission for entry into the DRO process.
If you are unsure whether a debt relief order (DRO) is for you call our free help line on 0800 988 7701 or use our contact form.
