What is a DRO?
A DRO is a legal form of insolvency that frees you from your debts. An ideal way to deal with your debts if you owe less than £20,000, are not a homeowner and have little additional income.
In order to access a DRO you need to visit moneyadviceservice.org.uk to find out where you can undertake a application. This will then go to an Approved Intermediary (Debt Adviser) who will process your application through the official receiver
A DRO costs £90 to undertake & this fee is paid to the official receiver. Your debt adviser will inform you on payment methods and may be able to recommend charitable funds to help you cover the cost.
Is a DRO right for me?
If you meet the below criteria you may be eligible for a DRO:
- You must owe less than £20000
- You must have less than £50 per month spare income
- You can not own assets which are worth more than £1000
- You need to have lived or worked in the UK for the last 3 years
- You haven’t already applied for a DRO in the last 6 years
A DRO will be registered on your credit history for 6 years and it can affect your banking facilities, tenancy and in some cases, employment. You should speak to your debt adviser about the full pros and cons before entering into any debt solution.