Debt Relief Orders (DRO)
A DRO will normally last for 1 year and at the end of this period, the debtor will be released from their debts if their circumstances have not changed.
For an individual to qualify for a DRO they must meet the following criteria:
- The individual does not own their own home;
- The individual has very little surplus income (less than £75 per month) or assets (less than £2000 in assets) ; and
- The individual must have less than £50,000 of debt (previously £30,000).
Debts covered by a DRO
Debts that are accepted into a DRO are called ’qualifying debts'. Creditors will not be able to chase you for payments during your DRO. The type of payment included in a DRO are as follows:
- credit cards, overdrafts and loans
- arrears with rent, utility bills, telephone bills, council tax and income tax
- benefits overpayments
- hire purchase or conditional sale agreements
- buy now - pay later agreements
- bills for services like vets or solicitors
- debts you owe to friends and family
- business debts
Debts not covered by a DRO
Unfortunately, not all outstanding debts are covered by a DRO. You will still need to pay if you have any of the following (note these do not count towards the £30,000 limit):
- magistrates court fines and confiscation orders relating to criminal activity
- child support and maintenance
- student loans
- social fund loans
- compensation for death and injury
The above is for information purposes only.
If you are seeking advice regarding a DRO please note that Turpin Barker Armstrong does not offer advice in this regard.
We always offer the first meeting free with no obligations to commit
