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Debt Relief Order

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A cost-effective remedy to deal with debts under £30,000 and very little surplus income.

What is a Debt Relief Order – DRO?

A Debt Relief Order is an official order granted by the official receiver that if approved will freeze your debts, interest and creditor recovery procedures for a period of 12 months. If after 12 months your situation has not changed then any unsecured debts will be written off.

Is a DRO suitable for me?

If you have unsecured debts which total less than £30,000, the value of your assets and savings is less than £2,000, your car is worth less than £2,000 (unless it’s been specially adapted because you have a disability) and your monthly disposable income after you have paid all of your creditors and household bills is below £75,  then a Debt Relief order could be a solution to tackle your debts. 

A period of 12 months will be granted during which all debt payments and interests are frozen by your creditors, if after 12 months your situation has not changed then your unsecured debts will be written off. Debts covered by a Debt Relief Order generally include credit cards, overdrafts, loans, store and catalogue cards, rent, council tax, utility, phone bills, Revenue debts including overpaid benefits, self assessment tax, VAT and PAYE/NIC.

There are other solutions including IVA’s, Debt Management Plans, Bankruptcy and Dealing Directly with your Creditors which may be appropriate. If you live in Scotland, the solutions are different, please visit Scottish Debt Solutions.

For full debt advice and whether a DRO would be your best option, you can also speak to one of our advisors.

What does the service cost and who can I speak to?

There is no fee to apply for a DRO. You can Apply for a DRO through an approved intermediary. There is a list of approved intermediaries listed on the insolvency service website.

The Debt Advisor Ltd is regulated by The Financial Conduct Authority. This means we are able to offer debt advice and deliver both formal and informal solutions. DRO’s do need to be carefully considered and you must take independent debt advice. We hope that the information and debt advice on this site including Frequently Asked Questions, will help inform you.

DRO – The benefits and the risks

Benefits
  • A Debt Relief Order is designed to be a low cost debt solution and an alternative to Bankruptcy if you have a debt level of £30,000 or less, little or no savings and few assets as detailed above.
  • Although a Debt Relief Order is a formal solution the cost is relatively low and the outcome is that for a period of 12 months you will have your debts and interest incurred frozen and if your situation has not changed after 12 months your debts will be written off.
  • If you qualify for a DRO, you can potentially write off up to £30,000 of unsecured debt.
  • Lenders are not allowed to contact or chase you for payment and you do not need to make any payments to lenders for 12 months.
Disadvantages
  • Not all debts qualify to be written off under a DRO. Debts such as student loans, child support maintenance and magistrates courts fines are ineligible under the scheme.
  • If you have given away assets, sold goods for less than their value or paid certain creditors in favour of others in the 2 years prior to your DRO application, a DRO could be refused.
  • A Debt Relief order will appear on your credit file and you will find it difficult to obtain credit for a period of 6 years. In addition, your details will be added to the insolvency register

We are proud of our 5* Trustpilot reviews

February 2024, Kizzie Price

Very quick and easy to do! So glad I finally reached out for some help and support. The advisor was very patient, kind and calm with great customer service. Looking forward to being debt free! Thanks.

February 2024, M Meharg

I spoke to a gentleman called Andrew last night he was amazing he went above and beyond to help me. He listened to everything I said and suggested the best way to help me sort out my problems. He is a total credit to the organisation. If I could give a million star review it still wouldn’t be enough. I would recommend this company & Andrew in a heartbeat. Excellent Service. Thank you Andrew

February 2024, Kenton Reid

You guys are truly amazing, thank you for your continual help with making my life a little easier. These guys are truly the best. WhatsApp message is so great, your response is so fast. I would recommend anyone to you guys. Contact The Debt advisor if you need some comfort. Thanks again guys.

February 2024, Ruth Miller-Hardy

I have just set up my debt management plan. During the discussions about my options, the advisor was very empathetic with me. I was made to feel like I could accomplish the things discussed without having to worry too much that I wouldn’t be able to afford the payment

February 2024, Tiffany Hesketh

Connor was incredibly helpful. Cannot thank him enough and I am very excited to working towards a debt free life.

January 2024, Rosie

If you’re worried about your debt then don’t delay in receiving help from this wonderful company! Had the pleasure of dealing Connor who was amazing at his job! My mind is at ease knowing my debts are taken care of! So efficient and really understanding! Will forever be grateful!

Thank you Connor!!

January 2024, Bill Sykes

Can’t thank you guys enough for the service provided. I have pretty much come up with a solution the same day from first contact to the final call with a plan in place, This is how professional this company is even down to running a little late with the agreed time I was contacted to inform me the little things make a difference. Feel like a weight has been lifted and a big shout out to Connor who I had dealt with…. thank you so much.

February 2024, Kizzie Price

Very quick and easy to do! So glad I finally reached out for some help and support. The advisor was very patient, kind and calm with great customer service. Looking forward to being debt free! Thanks.

February 2024, M Meharg

I spoke to a gentleman called Andrew last night he was amazing he went above and beyond to help me. He listened to everything I said and suggested the best way to help me sort out my problems. He is a total credit to the organisation. If I could give a million star review it still wouldn’t be enough. I would recommend this company & Andrew in a heartbeat. Excellent Service. Thank you Andrew

February 2024, Kenton Reid

You guys are truly amazing, thank you for your continual help with making my life a little easier. These guys are truly the best. WhatsApp message is so great, your response is so fast. I would recommend anyone to you guys. Contact The Debt advisor if you need some comfort. Thanks again guys.

February 2024, Ruth Miller-Hardy

I have just set up my debt management plan. During the discussions about my options, the advisor was very empathetic with me. I was made to feel like I could accomplish the things discussed without having to worry too much that I wouldn’t be able to afford the payment

February 2024, Tiffany Hesketh

Connor was incredibly helpful. Cannot thank him enough and I am very excited to working towards a debt free life.

January 2024, Rosie

If you’re worried about your debt then don’t delay in receiving help from this wonderful company! Had the pleasure of dealing Connor who was amazing at his job! My mind is at ease knowing my debts are taken care of! So efficient and really understanding! Will forever be grateful!

Thank you Connor!!

January 2024, Bill Sykes

Can’t thank you guys enough for the service provided. I have pretty much come up with a solution the same day from first contact to the final call with a plan in place, This is how professional this company is even down to running a little late with the agreed time I was contacted to inform me the little things make a difference. Feel like a weight has been lifted and a big shout out to Connor who I had dealt with…. thank you so much.

The DRO Process

Opting for a Debt Relief Order needs careful consideration. The decision should only be taken after you have taken independent advice from an FCA regulated practice.  Your affairs will be investigated and if your behaviour prior to the DRO is found to be dishonest (gifting away assets, or being dishonest) you could face a Debt Relief Restrictions Order.

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