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Debt Relief Order (DRO)

A debt relief order (DRO) is a way of having your debts written off if you have low debt with little assets. If you have less than £50.00 in surplus income per month a DRO can be a cheaper alternative to bankruptcy

Pros of a DRO

  • Alternative to bankruptcy
  • Don’t have to pay anything for 12 months
  • Debt written off after 12 months
  • Protects from creditors during the 12 month
  • Formal Solution without court appearance

Cons of a DRO

  • Can only apply of you owe less than £20,000 (England and Wales) £15,000 (Northern Ireland
  • Cannot have a car worth more than £1000
  • Your details will be recorded on the public register.
  • You may need to pay the insolvency service a fee if you qualify
  • Your credit file will be affected


A DRO will cost £90. This is the amount charged by the Insolvency Service to process a DRO application.

For more information on Debt Relief Orders in England, Wales and Northern Ireland, click HERE

Debt Arrangement Schemes (DAS) – This is for Scotland only

A debt arrangement scheme (DAS) is a way management your personal debts which is available to residents of Scotland by the Scottish government.

Pros of a DAS

  • Legal protection from your creditors which includes your home
  • Prevents legal recovery
  • Stopes future interest and charges from the date of approval and fully waived when your DAS is completed.
  • Flexible to your circumstance which can be changed

Cons of a DAS

  • Your debt will need to be fully repaid which can extend the term
  • Credit rating will be effected
  • Interest may be re-added to the debts if you fail to complete your DAS scheme
  • You cannot use further credit without approval from a DAS administrator

For more information on Debt Arrangement Scheme in Scotland, click HERE