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Debt Relief Order

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What is a Debt Relief Order – DRO?

A Debt Relief Order is an official order granted by the official receiver that if approved will freeze your debts, interest and creditor recovery procedures for a period of 12 months. If after 12 months your situation has not changed then any unsecured debts will be written off.

Is a DRO suitable for me?

If you have unsecured debts which total less than £50,000, the value of your assets and savings is less than £2,000, your car is worth less than £4,000 (£2,000 if you live in Northern Ireland) and your monthly disposable income after you have paid all of your creditors and household bills is below £75, then a Debt Relief order could be a solution to tackle your debts. 

A period of 12 months will be granted during which all debt payments and interests are frozen by your creditors, if after 12 months your situation has not changed then your unsecured debts will be written off. Debts covered by a Debt Relief Order generally include credit cards, overdrafts, loans, store and catalogue cards, rent, council tax, utility, phone bills, Revenue debts including overpaid benefits, self assessment tax, VAT and PAYE/NIC.

There are other solutions including IVA’s, Debt Management Plans, Bankruptcy and Dealing Directly with your Creditors which may be appropriate. If you live in Scotland, the solutions are different, please visit Scottish Debt Solutions.

For full debt advice and whether a DRO would be your best option, you can also speak to one of our advisors.

What does the service cost and who can I speak to?

There is no fee to apply for a DRO. You can Apply for a DRO through an approved intermediary. There is a list of approved intermediaries listed on the insolvency service website.

The Debt Advisor Ltd is regulated by The Financial Conduct Authority. This means we are able to offer debt advice and deliver both formal and informal solutions. DRO’s do need to be carefully considered and you must take independent debt advice. We hope that the information and debt advice on this site including Frequently Asked Questions, will help inform you.

DRO – The benefits and the risks

Benefits
  • A Debt Relief Order is designed to be a low cost debt solution and an alternative to Bankruptcy if you have a debt level of £50,000 or less, little or no savings and few assets as detailed above.
  • Although a Debt Relief Order is a formal solution the cost is relatively low and the outcome is that for a period of 12 months you will have your debts and interest incurred frozen and if your situation has not changed after 12 months your debts will be written off.
  • If you qualify for a DRO, you can potentially write off up to £50,000 of unsecured debt.
  • Lenders are not allowed to contact or chase you for payment and you do not need to make any payments to lenders for 12 months.
  • There are no fees to apply for a DRO.
Disadvantages
  • Not all debts qualify to be written off under a DRO. Debts such as student loans, child support maintenance and magistrates courts fines are ineligible under the scheme.
  • If you have given away assets, sold goods for less than their value or paid certain creditors in favour of others in the 2 years prior to your DRO application, a DRO could be refused.
  • A Debt Relief order will appear on your credit file and you will find it difficult to obtain credit for a period of 6 years. In addition, your details will be added to the insolvency register

We are proud of our 5* Trustpilot reviews

November 2024, Susan

I spoke with a kind understanding man showed me empathy. He’s probably saved my life. Was understanding and easy to talk to which I think is important as your feeling low. Embarrassed and can’t see a way out. He also was very patient

November 2024, cc

Molly was absolutely incredible. Non judgemental, kind and supportive. Explained everything so clearly and made the whole process so easy. I felt relief instantly after months of worry. Thank you so much.

November 2024, Mark

The whole process was articulated to me so clearly and the customer service following my application was first class. Would thoroughly recommend as it has put my mind to rest and can actually sleep properly for the first time ina long time! Thank you very much

November 2024, Nathan

So helpful and quick response’s on WhatsApp regarding any queries. They made me feel at ease now my DMP is set up. I would recommend to anyone who is struggling with debt, your not judged and make everything straight forward!

November 2024, Shanuykta

Very understandable and non-judgmental of my situation. Connor took time to explain the various options and which one would suit my situation better. He was very helpful and for creating light at the end of what was a rather dark tunnel for me. Thank you Connor.

November 2024, Temitope

The team has been tremendously helpful and supportive throughout the entire process. Their guidance and assistance made a challenging situation much easier to navigate. Highly recommend their services.

October2024, Donna

So understanding and non judgmental of the situation I found myself in. So friendly and helpful which come the end of the call the relief I had was amazing. I can sleep at night now that Debt Advisor has helped me in such a positive and professional way knowing I can manage my debt now and still be able to cope with the cost of everyday life. Thank you very much Ben for creating light at the end of what was a dark tunnel for me.

October 2024, Josh

Was really struggling with my debts and was very overwhelmed. I finally got the courage to speak to these as I find it very hard to talknon the phone but Connor was super friendly and helpful explained everything to me. A huge weight has been lifted off my shoulders. Don’t be afraid to contact them.

October 2024, Chloe

I have just started my journey with the debt advisor, so far they have been amazing, I’ve had the pleasure of having the lovely Molly as my advisor and she has been absolutely amazing. Facing debts can be awful and she made me feel so at ease and felt as though I had nothing to be ashamed of which is so so important in these situations as it does feel embarrassing at times! But I can’t thank Molly enough for how patient and kind she has been throughout the process so far! One of the only debt companies I’ve spoken to that treat you like a human and are totally understanding of your circumstances, thankyou again Molly!

October 2024, Charlotte

I spoke with Tom today who was incredible, he advised me of all the options available and when we came to the best solution together, I felt so relieved. Tom was friendly, efficient and put things into place very quick. If you are reading this and are struggling with debt or looking for advice, this company will help you so much. Thank you Tom.

October 2024, Wendy

This is a line I openly admit I didn’t ever want to go down but life has other plans. Trying to deal with the debts myself and creditors not being at all helpful, I turned to these guys. Ben was absolutely brilliant and I feel a huge pressure has been lifted. I’m now in control of my finances again. These guys don’t judge you in anyway. They give you the best options to choose from and fully explain each plan.
Thank you so much Ben

The DRO Process

Opting for a Debt Relief Order needs careful consideration. The decision should only be taken after you have taken independent advice from an FCA regulated practice.  Your affairs will be investigated and if your behaviour prior to the DRO is found to be dishonest (gifting away assets, or being dishonest) you could face a Debt Relief Restrictions Order.

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