A DRO can be a low cost alternative to bankruptcy, it is only available if you owe less than £20,000 if you live in England or Wales or less than £15,000 in Northern Ireland and you have £50 or less spare each month after paying your household bills. You don’t pay anything towards your debts for 12 months, if your situation remains the same, the debts will be written off. Debt relief orders are not available if you live in Scotland. In Scotland, a Minimal Assets Process (MAP) bankruptcy is a similar solution, but it’s important to note that it has different benefits, risks and fees associated with it.
While a DRO is in force you don’t have to make payments towards debts included in your DRO, you are still responsible for paying off any that aren’t included in the DRO – this is because DRO’s don’t cover all debts.
DROs are specifically designed for people with few assets and a relatively low level of debt.
To apply for a DRO there’s a fee of £90. If you can’t afford to pay the fee you may be able to get help towards the cost from some charities. You have to go to a DRO adviser, also called an approved intermediary – you cannot submit your own application.
It is a criminal offence to falsify any information on a DRO