Definition
Debt relief order (DRO)
A debt relief order is a form of insolvency for people with low income, few assets and relatively small debts. It freezes debts for 12 months and then writes them off if your situation has not improved. It is cheaper than bankruptcy but has eligibility conditions.
Common misunderstandings
- A DRO is not the same as bankruptcy — it is a separate legal process with different eligibility criteria and lower costs.
- A DRO is a serious step that stays on your credit file for six years and restricts what you can do financially during the moratorium period.