New measures are introduced to help vulnerable people in problem debt from today.
More people will access the debt solution, giving them a fresh start due to the changes announced today, which will come into force at the end of June.
Some other technical reasons could stop you from getting a DRO, including:
  •  you can’t have had a DRO within the last 6 years;
  • you can’t be a company director;
  • you can’t be an undischarged bankrupt or currently in an IVA;
  • if you are over 55, you can’t have a sizeable undrawn pension that you could access.
You have to apply through an approved debt adviser, called an Approved Intermediary, Citizens Advice (they set up over 50% of DROs) or National Debtline.
The DRO fee is only £90, and the organisation that sets up your DRO will only get £10 of this. As a result, almost all DROs are set up by charities.
Be aware that entering DRO arrangement affects your credit record for 6 years, may affect your job.

There are strict rules that you have to meet to qualify for a DRO. You must:

  • be unable to pay your debts;
  • have total debts of £30,000 or less at the date the application is approved by the official receiver;
  • have assets worth a total of £2,000 or less;
  • not have a car or motorbike worth £2,000 or more;
  • have £75 a month or less spare income after normal household expenses are taken into account;
  • live in England or Wales (or have lived or run a business in England or Wales in the last three years); and
  • not have had a DRO in the last six years.

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