Debt Relief Order (DRO) | Free help and advice from CCCS

Debt relief order

A debt relief order (DRO) can help you to rid yourself of debt if you are unable to repay it over a reasonable amount of time.

Is a debt relief order suitable for me?

To be considered for a DRO your situation must fit the following criteria:

You owe less than £15,000 in unsecured credit debts
You are not a homeowner
You have no more than £300 assets (although one car up to the value of £1000 will be exempt)
You have less than £50 a month income left over after you’ve paid all of your living costs

What does a DRO cost?

Debt relief orders help people in severe financial difficulties who have a low income. They are a cheaper alternative to bankruptcy as the cost for a DRO is £90.

How does a DRO work?

Your debts are frozen for a period of twelve months. During this time your creditors agree not to pursue you for the outstanding debt, nor add further interest on the balances. If, after the twelve months, your circumstances have not improved, the debts are written off.

How do I apply for a DRO?

We are pleased to say that we are one of the few approved organisations who can submit a debt relief order application.

If you are considering a DRO you can use our online debt counselling service, CCCS Debt Remedy, which will provide you with the most appropriate solution to your debt problem. Alternatively contact our free Helpline on 0800 138 1111.

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FAQs

What assets would be considered in a debt relief order application?

The following assets would be considered in a DRO application. If the combined value of them is more than £300 you would not qualify.

Savings/shares
Vehicles/caravans (although one vehicle up to the value of £1000 will be allowed)
Collectibles/antiques

Items such as furniture, tools for trade and household equipment will not be considered.

Are any debts excluded from a debt relief order?

Student loans will be excluded
Most court fines will be excluded. You will need to make an arrangement to pay these
Child maintenance arrears cannot be included. You will need to make an arrangement to pay these

How can I check my credit file?

It can be useful to know what is on your credit file, especially if you have been refused credit or you think you have old debts you may have forgotten.

You can get copies of your records with Experian, Equifax and Call Credit for £2 each. Details of how to apply are on their websites.

All three credit reference agencies offer online subscription services, usually with a free trial period.

To check the information held about you by National Hunter Ltd and CIFAS , you will need to pay £10 each. Again, details of how to apply are on their websites