All About DROs
A Debt Relief Order (DRO) is a formal legal solution that helps people with low income and few assets to write off debts.
Criteria for DRO
- You owe £50,000 or less.
- You have £75 or less leftover in monthly income after paying your essential household bills.
- You do not have any assets worth more than £2,000, and you must not own a vehicle worth more than £4,000.
- You do not own a property.
DRO advantages
- There is no fee to apply for a DRO.
- Creditors will stop collections activity.
- Interest and charges will stop.
- Most debts will be written off after 12 months, unless your financial situation improves within this time.
Things to consider
- A DRO will show on a public register.
- A DRO will show on your credit file for 6 years after it starts.
- A DRO could be cancelled if your finances improve within 12 months.
- Some assets may be sold to pay your creditors if they are of high value.
Other debt solutions
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If you are having a difficult time financially our team will be happy to discuss your available options. Fees will apply in some solutions, and your credit rating may be affected.