Debt Relief Order (DRO)

 Debt Relief Order is suitable for people who do not own their own home, have very little surplus income and assets and owe less than £15,000 of debt.

To apply for a DRO, you must meet the following criteria:-

1. You must be unable to pay your debts
2. You must owe less than £20,000
3. You must be domiciled in England or Wales, or have been carrying on in business in England or Wales in the last 3 years.
4. Your assets must not exceed £1,000.
5. Your disposable income must be no more than £50 a month after taking into account tax, NI and normal household expenses.
6. You must not be involved  in any other formal insolvency procedure at the time you apply, and
7. You must not have been subject to another DRO within the last 6 years.

The current fee for the DRO is £90 and must be paid to the official receiver in full before your application is considered.

A DRO does not involve the court.  They are run by the insolvency Service in partnership with skilled debt advisors, called approved intermediaries, who will help you apply to The Insolvency Service for a DRO.

An order lasts for 12 months and in that time, creditors named on the order cannot take any action to recover their money without the permission from the court.  At the end of the period, if your circumstances have not changed, you will be freed from the debts that were included in your order.

During the period of the DRO you must carry on paying on going commitments, such as rent and utilities. 

Bailams can assist you and advise you whether the DRO is the appropriate option and locate a relevant intermediary for you to attend and apply if required.