Serious debt: your choice is explained

The order of debt assistance (DRO) is a formal bankruptcy procedure aimed at people who cannot pay their debts. They were founded in 2009 after the financial crisis, as a way to make bankruptcy available for those who could not afford, or unable to access, the process through formal bankruptcy. There used to be a cost of £ 90 for debt release orders, but this was removed in England and Wales in April 2024, although it still valid in Northern Ireland.

This is available for those who have low income, or zero and a few assets, who do not have other ways to pay back what they owe and who do not have their own homes. To meet the requirements, your debt must be less than £ 20,000. You must have no more than £ 50 every month after you cover the household expenditure you usually do, and if you have a car, it can’t be worth more than £ 1,000, unless you have adapted because you have a disability. Whatever savings you have or things that you have must be worth no more than £ 1,000.

You have to talk to Dro advisers, which are usually free, before you apply for orders. You can find an advisor to the advice of local residents. You can also find one through another organization – you will find a list of organizations that are approved here.

If your advisor agrees that Dro is the right option for you, you must complete the application that will be submitted to the official recipient. This is the time to cost £ 90 to make the DRO application must be paid. If you need help at DRO fees, assistance may be available for you from several charity bodies, as long as you meet their feasibility criteria. To find out what assistance might be available from charity funds, you can use the Turn2us Grant search tool.

If your application for DRO is accepted, you don’t need to make further payments for most types of debt. The debt covered by DRO includes credit cards, loans and loungers, arrears of rent, utility bills, telephone bills, income tax and council taxes and debts that you owe to friends or family. Student loans, children’s allowances and court fines are not covered.

The debt assistance order will usually last for a year, unless your financial situation improves. If your finances have not improved for 12 months, any debt will usually be abolished.