Debt Relief Orders (DROs) were introduced on 6 April 2009 and are suitable for people who do not own their own home, have little surplus income and assets and less than £20,000 of unsecured debt.

A DRO will be in force for 12 months after which time an individual will be freed from the debt providing that there has been no change in personal circumstances. Creditors are unable to take any action to recover their debt whilst the DRO is in force. DROs do not involve the Court and are run by the Insolvency Service in partnership with skilled business advisors.

You’re generally eligible if you meet all of these criteria:

  • You owe less than £20,000
  • You’ve less than £50 a month spare income
  • You’ve less than £1,000 worth of assets
  • You’ve lived or worked in England and Wales within the last 3 years
  • You haven’t applied for a DRO within the last 6 years