Debt Relief Orders (DRO).

How can a DRO help me?

A debt relief order (DRO) are a relatively a new solution, introduced in 2007 under the Tribunal’s, Courts and Enforcement act 2007.

A DRO is a way to have your debt legally written off without attending court.

A DRO is an alternative to bankruptcy, if you have less than £20,000 worth of debt and very little or no assets and can’t afford no more than £50.00 per month back to your debts then a DRO could be the solution to help clear your debts.

DROs are not available in Scotland, its equivalent recently changed its name from Low Income Low Asset (LILA) to Minimal Assets Process (MAP).

If you live in Scotland please click on debt help Scotland for more information on which solutions are available for you.

(THIS SOLUTON IS ONLY AVAILABLE IN ENGLAND AND WALES AND NORTHEN IRELAND, THE EQUIVLENT IN SCOTLAND IS CALLED A MAP (Minimal Assets Process)

(DRO advice overview)

Pros Cons
A DRO is a low cost alternative to bankruptcy. You cannot apply for a DRO if you are a homeowner.
Once the DRO has been approved your creditors can not contact you for 12 Months. A DRO is only available if you owe less than £20,000 in England and Wales and less than £15,000 in Northern Ireland.
Entering into a DRO will not involve you attending Court. Once the DRO has been accepted it will be recorded on a public register.
All your debt will be legally written off through a DRO. IThe cost of applying for a DRO is a one of payment of £90.00 which is made payable to the Insolvency service
A DRO can be submitted online. You must not have more than £1000.00 in assets in England Wales.
A DRO £90.00 fee can be made payable in instalments. Your car must be worth no more than a £1000.00 in Value.
Your Disposable income must below £50.00 per month You must not have more than £300.00 in assets in Northern Ireland

IVAs are individual to you if you have any questions or queries please do not hesitate to contact us on free phone 0800 206 1447

(Key issues to consider with an DRO)

Before entering into an DRO there are other keys issues you may need to take into consideration.

IVAs are individual to you if you have any questions or queries please do not hesitate to contact us on free phone 0800 206 1447

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