Are there any restrictions?

Debt Relief Order | Guide

The conditions for entering a DRO are strict. This means that not everyone with problem debt will be eligible for a DRO, but if you don’t meet the criteria, another debt solution may be more suitable. The Debt Advisory Centre will be able to advise on which is the most suitable solution for your circumstances.

Your total debts must not be larger than £30,000, which includes unsecured debts as well as priority debt arrears, such as benefit overpayments and utility arrears, and you must be unable to afford repayments on these debts. All of your assets combined together must not be worth more than £2,000. Assets include things like jewellery and expensive electrical equipment. You can also own a vehicle worth up to £2,000. If you’re over the age of 52, and can draw on your pension, this can sometimes be seen as an ‘asset’. Speak to us as we’ll be able advise you on this further.

Your disposable income, which is calculated after your essential living costs have been calculated, must not be higher than £75 per month. Essential costs include things like your rent, food, utilities and travel costs.

Other considerations do apply. Contact us and we’ll be able to discuss your situation with you and advise whether a DRO is the right solution for you.

Next: What are the alternatives?

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