What is a Debt Relief Order?

Low level of debt? A DRO could be the way to go

Before we start, we’d like to be clear that a DRO will cost you a £90 fee (taken by the Insolvency Service). This is the only fee you’ll pay. If you live in Northern Ireland you’ll need to pay in full, but instalments are accepted in England and Wales. We also offer a MAP, which is the Scottish equivalent to a DRO.

A DRO or Debt Relief Order is a form of insolvency that can help clear all debt that you can’t repay in a certain time limit. If you’ve no assets to your name and a relatively low level of debt (less than £20,000), then Find a Debt Expert may recommend a DRO. It relieves stress, is simple to understand, and won’t take as long as other loans to pay off. To discuss a DRO with a member of our helpful Find a Debt Expert team simply visit us online or call 0161 694 2650. But first, you’ll need to meet the following criteria:

  • You owe £20,000 or less
  • You possess assets that are worth less than £1,000 – but you’re allowed a vehicle of up to £1,000
  • You are not a homeowner
  • You don’t have other assets or things of value
  • You have less than £50 after all living costs
  • You must not be subject to any current bankruptcy or have an IVA in place
  • You must not have had a DRO approved in last six years
  • You can’t have sold a property for less than it’s worth within the last two years
  • You need to have lived in England, Wales or Northern Ireland for the past three years – or run a business there

A DRO covers most debts. But not all.

Not all debts can be paid with a DRO, such as student loans, court fines, social fund loans or child support. However, a DRO is ideal for paying off the following:

  • Overdrafts
  • Credit cards
  • Loans
  • Rent
  • Council Tax
  • Benefit overpayments
  • Catalogues
  • Utility and phone bills
  • In-store credit agreements
  • HM Revenue & Customs monies such as Income Tax or National Insurance Contributions

So far, so good? So, what next?

Hey, you’re eligible. You meet the required criteria and want to go with a DRO. That’s great news for Find a Debt Expert and even better news for you. You’ve made to first step towards debt freedom. At Find a Debt Expert we’re fully authorized to submit your Debt Relief Order application, online, to the official receiver at the Insolvency Service. We’ll need to assess your financial situation to make sure a DRO is the best solution to your debt problem. Looks like it is so far though. Finally, we’ll send details of your debts and proof of your income to the Insolvency Service.

Apply online. Relax, and recline

We’re almost there. Once we know you’re definitely eligible, a Find a Debt Expert advisor will register your DRO application and complete the online application process. The finished application will then be sent to the Insolvency Service along with a £90 fee (you pay nothing else). Over the year your creditors can still add interest. But if your your DRO is cancelled within this time it has no effect on you. That’s it. Done.

To get started, use our debt calculator.

Find a Debt Expert is a trading style of Milton & Stirling Ltd, Company Number SC587851 – Solutions Scotland, 78a Stanley Street, Glasgow, G41 1JH. DPA number ZA431921

Milton & Stirling Ltd are an Appointed Representative of MichaelAlan Ltd who are authorised & regulated by the Financial Conduct Authority, FRN 690939.

As part of our free service, we’ll review your financial situation, explain the available options and recommend a debt solution which is suitable for you. The risks of all suitable solutions will be explained clearly and if you decide to go ahead with a debt solution we will refer you to one of our trusted providers who specialise in the management of that debt solution. We’ll be paid for introducing you or for the preparatory work we do, depending on your debt solution fees may be payable if ongoing services are provided. Read about fees and key information in our terms & conditions. To find out more about managing your money and getting free debt advice, visit Money Advice Service , an independent service set up to help people manage their money.

You can find out more about our services and how we handle your information in our Privacy Policy

For complaints see our Complaints Policy

For independent advice on how to deal with creditors with regards to Insolvency Services see https://www.gov.uk/government/organisations/insolvency-service