Debt Relief Order (DRO)
We've helped thousands of people escape the pains of unaffordable debt
✅ Write off 100% of unsecured debt
✅ Stop all creditor contact
What is a Debt Relief Order?
A Debt Relief Order (DRO) is a debt solution that allows people with debts up to £50,000 and little income or valued assets, to be relieved from their repayments for 12 months. After this time, if they are still unable to repay, their debts are officially written off.
A Debt Relief Order is designed for those living in England, Wales, or Northern Ireland who are unable to repay outstanding debts. It offers an opportunity to take a break from repayments, in the hope that their financial situation improves.
Is a Debt Relief Order right for me?
DROs are designed for people with little or no surplus income or assets they can put towards repaying their debts. DRO applicants typically don’t have their own car or property, or assets worth more than £4,000. They also have a disposable income (after household bills and other necessary payments) of no more than £75 a month.
A DRO can be an alternative to bankruptcy. Once you enter one of these orders, all interest and charges from your creditors are frozen for a period of 12 months. When your DRO comes to an end, there will be a review of your finances. If your situation has improved, you’ll be expected to start making debt repayments again. If it hasn’t improved, your debts will be written off.
When should I consider an DRO?
If you have debts up to £50,000 that you feel you can’t pay back and have little to no assets or property of your own to contribute towards repayments, a Debt Relief Order may be a preferable choice to Bankruptcy.
A DRO may be an option if you feel you lack the resources to enter any other debt solution or feel you need space from your current debts.
Are you eligible for a DRO?
Our expert debt advisors will be able to tell you everything you need to know about debt solutions and eligibility criteria.
Click below to see if you qualify 👇
Debt Relief Order pros & cons
DRO Pros
✅ Potential to write off debts
✅ 12 months respite from your debt repayments
✅ Creditors cannot contact you during the 12 months
✅ You don't need to appear in court
DRO Cons
❌ Not available if you own a property
❌ Not available if you own an asset worth over £4,000
❌ Only available if you owe less than £50,000
How to apply for an DRO
If you want to apply for a DRO or find out what other solutions could be available, get in touch and one of our friendly advisors will:
- Review your current debts and financial situation, then give you all the information to make the right choice for you.
- If you decide a DRO is the best option for you, Mums with Debt will help you with the setup process.
- Once set up, we will review your application and send the DRO request to your creditors.
What debts does a DRO cover?
A DMP covers most unsecured debts, which means debts that are not tied to assets (usually your home). These can include:
- Household bills
- Council tax
- Credit cards
- Personal loans
- Overdrafts
- Payday loans
- Buy now, pay later debts
What debts can’t be included in a DRO?
An DMP typically includes most unsecured debts. Any debts that are tied to assets, like your house, will not be covered in an DMP.
- Mortgages
- Debts incurred through fines
- Student loans
- Court fines
- Social fund fines
- Hire purchase agreements
- Child support arrears
Living with a Debt Relief Order
A Debt Relief Order is recorded on a public register. Once you have entered into one of these orders, you will have some welcome breathing space from your creditors and your debts. You’ll have a 12-month period to try to get ahead of your debts and improve your finances. And if your situation doesn’t improve, at the end of the 12 months, you’ll be free from debts you can’t afford to pay back.
It’s important to be aware that a DRO will have implications in terms of your credit score and your ability to take out future credit agreements.