Debt Relief Order (DRO)

Debt relief orders or Debt Relief Restrictions Order is a facility that allows people who qualify with certain assets, disposable income and levels of debt to discharge their debt quickly and cheaply rather than waiting for bankruptcy or other procedures with a fast-track system through the courts with no personal appearance at court required. The current average waiting time for debtors is between one and two months.

This facility is suitable for People with relatively low liabilities, little surplus income and few assets and who are unable to pay off their debts in a reasonable time;

The debtor’s total unsecured liabilities must not exceed £15,000;
The debtor’s total gross assets must not exceed £300;
The debtor’s disposable income, following deduction of normal household expenses, must not exceed £50 per month.

Application for a debt relief order must be made through an approved intermediary, like ourselves, who will not make a charge for their services. There is however a court charge of £90 to serve the order. Upon receipt of the application and payment of the fee, an Official Receiver is able to make the order without the involvement of the court if it appears that the applicant meets the requirements.

During the period that an order is in force, the debtor will:

Be protected from enforcement action by the creditors
Be free from those debts at the end of the period (usually one year)
Be obliged to provide information to and co-operate with the Official Receiver
Be expected to make arrangements to repay their creditors should their financial circumstances improve

For the duration of the Order, the debtor will also be be subject to the following restrictions:

The debtor must not obtain credit of £500 or more, either alone or jointly with another person, without disclosing that they are subject to a DRO to the lender.
The debtor may not carry on a business (directly or indirectly) in a name that is different from the name under which they were granted a DRO, without telling all those with whom the debtor does business the name under which they were granted a DRO.
The debtor may not be involved (directly or indirectly) with the promotion, management or formation of a limited company, and may not act as a company director, without the court’s permission.

To obtain a DRO you must seek financial advice from a debt advisor who is an approved intermediary, they will be able to help you complete the application. You cannot apply for a DRO without the assistance of an intermediary.