A Debt Relief Order (DRO) is an alternative to bankruptcy which was introduced in April 2009 to allow people with a low level of debt, with no assets and a low income to avoid going bankrupt.
A very strict criteria has been laid down to qualify for a DRO and are as follows:
- You must have unsecured debt of £15,000 or less.
- You must not have assets, including savings, of more than £300 in total.
- You must not have a vehicle of more than £1,000 in value.
- You must not have more than £50 per month disposable income after you have paid your essential costs of living.
You will remain in the DRO for a period of twelve months and once discharged all of your outstanding debt will be cleared. However, should your circumstances improve whilst in the DRO you would be expected to make payments towards your debts.