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Dan Reardon

I am a Debt Counsellor, licensed by the Financial Conduct Authority

Debt Relief Order

If you want to apply for a Debt Relief Order, you can do so here:

https://www.gov.uk/guidance/how-to-get-a-debt-relief-order-dro

This is a summary of what I cover in the video:

Key points of a Debt Relief Order (DRO)

  1. Available to those with debts below £30,000 with a disposable income of less than £75 per month (£20,000 and £50 respectively in Northern Ireland)
  2. Once a DRO is approved, your creditors are legally prevented from taking any further action against you to recover the debt.
  3. A one off fee of £90 is payable to arrange the DRO, thereafter, there are no monthly payments.
  4. If there has been no change to your financial situation once you complete the DRO period (usually one year), the remaining debts included in the order are written off and you are no longer required to repay them.

Consequences of entering a Debt Relief Order

  1. A DRO remains on your credit file for six years, which can make it challenging to obtain credit during that period and may affect your ability to secure loans or mortgages.
  2. The details of your DRO will be recorded on the Insolvency Register, which is accessible by the public and credit agencies.
  3. During the DRO period, there are restrictions on borrowing more than £500.
  4. You cannot establish, promote, or manage a company without court permission, or act as a company director without court permission. If you do obtain permission, you must declare your DRO to everyone that you do business with.
  5. Tenancy restrictions – check your tenancy agreement before using a DRO
  6. Employment implications – certain professions and roles, such as those in finance or law, may have restrictions or implications related to holding a DRO.