Q. Are Debt Relief Orders available now?
Yes. Debt Relief Orders were introduced Monday 6th April 2009

Q. Could a DRO work for me?
A Debt Relief Order is designed to help people who have debts of less than £15,000, little spare monthly
income and few assets.

Q. If my debts total more than £15,000, can I still get a DRO?
No. Your qualifying debts must not exceed £15,000. Your local Citizens Advice Bureau or authorised adviser will be able to advise on other debt management options which may be more suitable, like an Individual Voluntary Arrangement (IVA), for example.

Q. How much spare income can I have?
Your spare income cannot be more than £50 a month. So take your income (wages, benefits, allowances etc) and deduct your normal household bills and expenses (rent, utility bills, food etc.). The amount that's left - your disposable monthly income - cannot total more than £50 a month.

Q. Why does the value of my assets matter?
If the value of your assets - that's the things you own, like stocks and shares, antiques and jewellery - is more than £300 then you cannot apply for a DRO. You are allowed to own a vehicle worth up to £1,000 (or more if it has been specially adapted because of a physical disability). You cannot have a private pension fund worth more than £300. Things like household furniture, bedding and tools for work are not included as assets. If you are homeowner, it is unlikely you will be able to apply for a debt relief order, whether or not you have a mortgage.

Q. Are DROs open to all UK residents.
No. To apply for a DRO you must live in England or Wales or have been resident or
carrying on business here for the last three years. Other Debt Management options are available for residents of Northern Ireland and Scotland.

Q. If I already have an IVA, can I still apply for a DRO?
No. If you want to apply for a DRO you cannot already have a formal insolvency procedure, or have another procedure pending.

Q. What will a Debt Relief Order do for me?
If you are granted a DRO, the creditors included in the order will not be able to take any action against you to get their money. You are protected and won't need to make payment to them. Once the debt relief order has finished, these debts are written off. Some types of debt cannot be included in a DRO, such as student loans, court fines, court orders and child support payments. Even if you are given a DRO, you will still be liable for these debts throughout the debt relief order period and once it has ended. When applying for, or during, a DRO, it is important you do not try to hide information or dispose of assets in order to take advantage of the scheme. If you are caught abusing the system, there are civil and criminal penalties.

Q. How will a DRO affect my credit rating?
Details of your DRO will be kept in public records for fifteen months and will appear on your credit record for six years.

Q. What restrictions will a DRO impose on me?
As part of the debt relief order, you will be subject to certain restrictions - and your ability to obtain new credit may be affected. You will need to inform your creditors, for example, if your circumstances change. If you want to engage in certain business activities, or wish to become a company director, you may also need to obtain the permission of the court.

Q. Can I apply for a DRO myself?
No. First it is recommended you seek advice from a qualified debt advisor. If a DRO is appropriate for you, only an approved intermediary - an authorised adviser - can apply online on your behalf.

Q. What is an intermediary?
An intermediary - or authorised adviser - is usually a skilled debt adviser, who has been approved to make DRO applications.

Q. How much does a DRO cost?
There is a £90 fee to apply for a debt relief order. This payment is non-refundable and can be paid in instalments before submitting your application. Your application will not be considered until the £90 has been paid. Sometimes charities may pay the fee on your behalf.

Q. Where can I find more information?
Your local Citizens Advice Bureau or Authorised Adviser will be able to provide more
information on debt relief orders.