Debt Relief Order
A Debt Relief Order (DRO) can be a lifeline if you’re struggling with debt. At Advice Centre Group, we’re here to help you understand if this solution could be right for you.
- How an DRO Works?
- DRO Pros & Cons
- What debts can be included in DRO
You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money. Further Information – The Insolvency Service has produced a Guide for people struggling with debt in the United Kingdom.
Speak To Our IVA Experts Today
What is a Debt Relief Order?
A Debt Relief Order is a formal debt solution for individuals with low income, minimal assets, and relatively low debt levels. It provides a legal way to deal with unmanageable debts when you can’t afford to make payments.
With a DRO:
- You won’t have to make payments toward most debts included in the order
- Creditors cannot force you to pay off these debts during the DRO period
- Most qualifying debts are written off after the DRO ends (typically after 12 months)
- You’ll work with a specialist DRO adviser who will help with your application
- The application process is handled by an official receiver
A DRO offers a fresh financial start with less cost and complexity without many of bankruptcy’s drawbacks.
Is a Debt Relief Order Right for You?
You can qualify for a Debt Relief Order if all of the following criteria apply:
- Your qualifying debt should be less than £50,000
- You have £75 or less left each month after paying household expenses
- Your total assets are worth no more than £2,000
- If you own a vehicle, it must be worth less than £4,000
- You don’t own a house.
- You haven’t had a DRO in the last six years.
- You’re not already in another debt plan like bankruptcy or an IVA.
Debts That Can Be Included In a Debt Relief Order:
Debts That Can Be Included In a DRO:
- Credit cards and overdrafts
- Personal loans
- Rent, utility, and council tax arrears
- Telephone bills
- Income tax and benefits overpayments
- Hire purchase agreements
- Buy now – pay later agreements
- Bills for services (vets, solicitors, etc.)
- Personal debts (friends and family)
- Business debts
Debts That Can Not Be Included In DRO:
- Magistrates court fines and confiscation orders
- Child support and maintenance
- Student loans
- Social fund loans
- Compensation for death and injury
- Debts obtained through fraud
DRO Pros and Cons
DRO Pros:
- Most qualifying debts are written off after 12 months
- You don’t make payments toward included debts during the DRO period
- Creditors can’t pursue you for payment once the DRO is made
- Much less expensive than bankruptcy
- No court appearances are required
- Straightforward application process with adviser help
- Provides a clean slate after completion
- Most debts can be included, including rent arrears, fuel debt and Council Tax
- It’s a formal, legally binding agreement
DRO Cons:
- Stays on your credit file for 6 years
- Restrictions on company directorship and business activities
- Your details appear on the Individual Insolvency Register
- Strict asset limits – homeowners with equity won’t qualify
- Secured creditors can still take action against you
- Some debts remain (court fines, student loans, maintenance payments)
- Your credit rating will be affected
- May affect current or future tenancy agreements
What Our Clients Say About Us
We Can Help You Manage Most Kinds of Unsecured Debt, Including:
We Handle All Bailiffs
How we helped Holly
Pressure Has Been Taken Off Me
I felt a lot of pressure had been taken off me once I had spoken to them. They kept me upto date every step of the way during my Iva set up and I was able to call anytime I needed advice
- £28,409 Debt Amount
- £104 Monthly Payment
- 79% Debt Write off
Holly
What Our Clients Say About Us
"They really helped me get out of a massive hole of debt I was falling worse into I can't thank them enough for helping me I feel so much beta and can sleep now without worrying what's going to happen"
Sharon
“ I felt a lot of pressure had been taken off me once I had spoken to them. They kept me upto date every step of the way during my Iva set up and I was able to call anytime I needed advice.”
Holly
“Excellent service and the most understanding and polite staff. Very straight forward and easy to understand and clear problem solving. Private and confidential discussions with confidence. Thank you to all.”
Michelle
Ready to Take the First Step?
Get confidential support to stop the stress and take back control of your finances.
Email us – Enquiries@slwb.co.uk
You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money
SLWB LTD (Company No. 16451543).
Registered Office: Second Floor A, Cheadle Place, Cheadle, Cheshire, England, SK8 2JX.
Adam Southard is authorised as a Licensed Insolvency Practitioner in the United Kingdom by the Insolvency Practitioners Association, We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meet the criteria for one of our insolvency solutions, therefore, all advice regarding Individual Voluntary Arrangements (IVA) is given in reasonable contemplation of an insolvency appointment.
Adam Southard is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Office Holder No. 11930
What you need to know about Individual Voluntary Arrangements
(Insolvency Service)
We provide solutions to individuals throughout the UK, We Will help recommend solutions available to your circumstances in which you can then make an informed decision about which solution you qualify for is best for you and your circumstances.