Quick Scoop

A debt relief order (DRO) is a formal debt solution for people in England and Wales who cannot afford to pay their debts and meet certain eligibility rules. If approved, it usually lasts 12 months, during which interest and most collection action stop, and then the included qualifying debts are written off.

What it means

A DRO is designed for people with low income, few assets, and relatively limited debts. It is meant to give you a fresh start without going through bankruptcy, but it does come with restrictions while the order is active.

How it works

  • You apply through an approved debt adviser, not directly on your own.
  • If the application is accepted, your creditors listed in the DRO should stop chasing payments and most interest and charges should stop.
  • After 12 months, the qualifying debts are normally written off if your situation has not improved enough to change the order.

Current eligibility changes

Recent updates raised the maximum debt limit to £50,000 and increased the allowed car value to £4,000. The old £90 application fee was also scrapped.

Important cautions

A DRO is not right for everyone, and there are restrictions you must follow during the order. If those restrictions are broken, the period can be extended and there may be serious consequences.

Bottom line

If you’re struggling with unsecured debt and think a DRO might fit, the safest next step is to speak to a free debt adviser who can check whether you qualify and whether it’s the best option for you.

TL;DR: A debt relief order is a 12-month debt solution for eligible people in England and Wales that can freeze most debt action and then write off qualifying debts at the end.

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