Debt Relief Orders
What is a debt relief order (DRO)?
DROs are a formal insolvency procedure that were introduced in April 2009 and are aimed at people with relatively low debts and, importantly, very little disposable income and few or no assets. Like bankruptcy, a DRO does not require creditors’ consent.
An order lasts for 12 months. In that time, creditors named on the order cannot take any action to recover their money without 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.
Is a DRO likely to be suitable for me?
To apply for a DRO, you must meet certain conditions:
- You must be unable to pay your debts.
- You must owe less than £15,000.
- You can own a car to the value of £1000 but the total value of other assets must not exceed £300.
- After taking away tax, national insurance contributions and normal household expenses, your disposable income must be no more than £50 a month.
- You must be domiciled (living) in England or Wales, or at some time in the last 3 years have been living or carrying on business in England or Wales.
- You must not have been subject to another DRO within the last 6 years.
- You must not be involved in another formal insolvency procedure at the time you apply.
For further information regarding DROs, and to find out whether you may qualify to apply for a DRO, please call us today on 0114 251 8820.
Alternatively, please complete our contact form and we will respond to you as soon as possible.