Debt Relief Order (DRO)
A Debt Relief Order, or DRO as it is sometimes referred to is a formal debt solution There are no fees involved with a DRO. Qualifying debts would be frozen for 12 months and providing you continue to meet the eligibility criteria; the qualifying debts will be written off at the end of the 12-month period.
You may qualify for a DRO if you do not have assets worth more than £4,000, owe less than £50,000, are not a homeowner and cannot afford to pay more than £75 per month toward your debts. You can only apply for a DRO through an approved intermediary.
Advantages
- A DRO includes most debts
- You will not need to make any further payments into the DRO
- You will not have to pay anything towards your debts
Disadvantages
- A DRO is a formal insolvency procedure and will have a negative effect on your credit file
- If your circumstances improve during the moratorium period, your DRO could be revoked
- Your details will be listed on the Insolvency Register
