Debt Relief Orders (DRO)

Debt relief orders (DROs) provide individuals with relief from their debts by placing a "freeze" on any action to be taken by creditors to recover their debts without the court's permission.

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 £30,000 of debt (£50,000 from 28th June 2024).

If you are seeking advice regarding a DRO please contact our office on 0208 661 7878 and our experienced staff will be able to assist you.

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

We always offer the first meeting free with no obligations to commit