Debt Relief Order

A Debt Relief Order or DRO is sometimes referred to as a form of mini-bankruptcy. It is a formal solution that allows you to write off your unaffordable debts and is available to people in Northern Ireland, England and Wales. It usually lasts for 1 year and after that you are released from your debts (with some exceptions).

A Debt Relief Order is suitable for people who have

•   debts of £20,000 or under.
•   assets that do not exceed £1,000 (and a vehicle worth less than £1,000).
•   a surplus income of no more than £50 per month after all expenses have been taken out.

How do I set up a Debt Relief Order in NI?

You can apply for a Debt Relief Order through an authorised debt adviser, such as the Citizens Advice Bureau. They will confirm if it is in fact your best option and help you fill in the relevant paperwork. The authorised individual will submit your application to a government official called the Official Receiver (OR), who will fulfill the Debt Relief Order if approriate. You can also contact us to find out if a Debt Relief Order is your best option for getting out of debt.

How much will I pay?

A Debt Relief Order carries a one off fee to The Insolvency Service of £90. You can pay this in instalments over a period of six months if need be.

Advantages of a Debt Relief Order

•   Your debts are written off when you have finished your Debt Relief Order (with exceptions - see disadvantages).
•   Your creditors cannot take any further action against you without permission from the court.
•   It can be considered as a fresh start with your finances.
•   Their is only a one off fee of £90 which can be paid in instalments before the application is made if need be.
•   You get to keep a vehicle (up to the value of £1,000)

Disadvantages of a Debt Relief ORder

•   Your details will be placed on a public register.
•   If you have had a Debt Relief Order in the past 6 years, are bankrupt, in an IVA, or subject to Bankruptcy restrictions, then you cannot do a Debt Relief Order.
•   If you are a homeowner you cannot do a Debt Relief Order.
•   Student loans, fines and some other debts cannot be included in a Debt Relief Order.
•   Your employment could be affected.
•   You must cooperate with your Official Receiver during the Debt Relief Order or it could be revoked.
•   You cannot act as a director of a company or be involved in the management unless the court agrees to it.
•   It is an offence to obtain credit of more than £500 or more without disclosing that you are in a Debt Relief Order.
•   You could have a Debt Relief Restrictions order made against you for anything from 2 - 15 years if you are found to have acted irresponsibly, recklessly or dishonestly.

Contact us

Get in touch with Debt Advice NI and get help with your debts. Call us now on 0800 043 0550 or click here to visit our contact page.