A Debt Relief Order (DRO) is one way to deal with your debts if you:
owe £20,000 or less
don’t own your own home
don’t have other assets or things of value
don’t have much spare income
You don't have to make payments towards most types of debt included in your DRO and your creditors can’t force you to pay off the debts. A DRO usually lasts a year unless your situation improves. When the DRO ends, most of your debts will be written off.
You’ll need to speak to a special DRO adviser who will help you fill in an application to the official receiver. The adviser can’t charge you for their time but there's a £90 fee to make a DRO application.
You should be able to get a DRO if all of the following apply:
you're unable to pay your debts
your qualifying debts are not more than £20,000
you’ve got no more than £50 left over each month after you’ve paid your usual household expenses
you don’t own your home
other savings or things of value you own, called assets, are worth no more than £1,000 (some assets are ignored when working out the value, for example, basic household items and tools you need to do your job)
you don’t own a car worth £1,000 or more, unless it’s one that’s been specially adapted because you have a disability
it's been at least 6 years since your last DRO was made and you aren’t going through another formal insolvency procedure, such as bankruptcy or an individual voluntary arrangement (IVA)