Debt Relief Order (DRO)

Debt Relief OrderDebt Relief Orders (“DRO”) were introduced on 6th April 2009. The Government introduced a low cost, out of court, debt solution targeted at people with low income and little or no assets. In order to qualify for a DRO you need to satisfy certain criteria, the main ones being;

  • You must be unable to pay your debts;
  • Your total unsecured debts must not exceed £20,000;
  • Your total assets must be less than £1,000, and
  • Your disposable income, after normal domestic expenses, must not exceed £50 per month.

If approved, your debts are frozen and you do not need to make any payments towards them. It allows people who are unable to repay their debts the opportunity to become debt free within one year.

It is an alternative to bankruptcy as it offers a fresh start for people at a cost of £90, which is significantly less than the cost of bankruptcy, which is currently £680. The CAB is authorised by the Government as an intermediary to deal with people applying for a DRO; however you make an application on-line.

So for more information on this debt solution, contact either your local CAB or Dunion & Co today by calling 01782 828 733 or e-mailing us on

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