A Debt Relief
Order: understand how it works
A DRO normally lasts 12 months. Eligible included debts are usually written off at the end if your circumstances remain within the rules. Zesty Money cannot advise on or arrange a DRO.
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What is Debt Relief Order?
A Debt Relief Order (DRO) is a formal insolvency solution for people in England and Wales who cannot repay their eligible debts. It normally lasts 12 months, with no repayments towards included debts during that period. If the conditions continue to be met, those debts are usually written off at the end. Excluded debts and ongoing bills remain payable.
Zesty Money cannot advise on or arrange a DRO. An approved debt adviser must assess your circumstances and submit the application. Find one through MoneyHelper.
General eligibility criteria in England and Wales
- You owe less than £50,000.
- You have less than £75 a month left after reasonable household expenses.
- Your assets are worth less than £2,000 and you do not own your home.
- You do not own a vehicle worth £4,000 or more, unless an applicable exemption applies.
- You have lived or worked in England or Wales in the last three years.
- You have not had a DRO in the last six years.
- You are not currently bankrupt, in an IVA, or subject to bankruptcy or debt relief restrictions; other insolvency proceedings may affect eligibility.
An approved adviser checks the full rules, including assets, excluded debts and any exemptions. Read the official DRO guidance.
Pros & Cons of Debt Relief Order
Pros
- Legally binding agreement
- Included debts are usually written off after 12 months
- Only eligible debts can be included
- Gives legal protection from creditors
- Gives you breathing space to deal with the debts
Cons
- Unsuitable for homeowners
- Will impact your credit rating
- You cannot be a director of a limited company.
- A DRO is entered on a public register
- You cannot have a DRO if you have an existing bankruptcy order, an IVA, are subject to bankruptcy restrictions, or you have had a DRO in the last 6 years.
- You cannot obtain credit of more than £500 without disclosing that you are subject to a DRO.
Customers can get free debt counselling, debt adjusting and providing of credit information services from the MoneyHelper – an organisation set up by the Government to offer free and impartial advice to those in debt. For more information from MoneyHelper click here www.moneyhelper.org.uk You can find Government guidance on dealing with your creditors here.
How it works
A simple process to help you find a solution that works for you.
Make an enquiry
Zesty Money cannot advise on or arrange a DRO. Contact an approved debt adviser through MoneyHelper for an assessment.
Quick Chat
MoneyHelper can help you find an approved debt adviser who can assess all of your options.
Your Choice
Only an approved intermediary can apply for a DRO. Zesty Money cannot advise on or arrange one. A DRO normally lasts 12 months. Included debts are usually written off at the end, subject to the rules. Excluded debts remain payable.
Understand your next steps
A DRO normally lasts 12 months. Included debts are usually written off at the end, subject to the rules. Excluded debts remain payable.
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IVA?
A solution for people with debts over £5,000. An IVA could help you repay eligible debts through affordable payments. Any debt written off depends on your circumstances, creditor approval and successful completion of the IVA.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affectedDebt management
A Debt Management Plan or DMP, is an informal agreement to pay back non-priority debts, reducing your monthly payments to a single affordable amount each month.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affectedBankruptcy
Bankruptcy is a formal debt solution for people with debts they cannot repay. It’s often viewed as a last resort but can be a great solution for people without the means to repay debts.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affectedDebt Relief Order
A Debt Relief Order (DRO) is an agreement designed to help people who can’t afford to repay their debts, have a debt level of less than £50,000 and don’t own their home. Zesty Money cannot advise on or arrange a DRO; an approved debt adviser must assess your circumstances.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affected