A Debt Relief Order is a formal debt solution for people with low spare income and limited assets. During the 12-month DRO period, included creditors cannot chase payment, add interest or take enforcement action without permission.
What happens after 12 months#
At the end of the DRO period, the included debts are usually written off if your circumstances have not improved. You do not normally have to make payments towards those included debts during the DRO period.
Current DRO limits#
For England and Wales, current GOV.UK guidance says you may be eligible if you:
- Owe less than £50,000
- Have less than £75 a month spare income
- Have less than £2,000 in assets
- Do not own a vehicle worth £4,000 or more
- Do not own your home
- Have not had a DRO in the last six years
What does not end#
The DRO marker stays on your credit file for six years from the start date. Some debts are not written off by a DRO, including certain court fines, student loans, child maintenance and debts from fraud.
If your income or assets improve during the DRO period, you must tell the Official Receiver. The DRO can be revoked if you no longer meet the rules.
Related questions#
- How do you qualify for debt relief?
- Can debt be written off?
- What can I do instead of an IVA?
- What happens if you cannot afford IVA?
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