Pure Financial Management,
Unit 3 Thornes Office Park,
Monckton Road, Wakefield,
West Yorkshire
WF2 7AN

Tel: 0844 855 0 225
Fax: 0844 855 0 229

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Debt Relief Orders

What is a debt relief order (DRO)?

A debt relief order is an order you can apply for when you can't afford to pay off your debts.

It protects you from your creditors and allows you to start afresh but you need to think about it carefully first. A debt relief order normally lasts for one year. At the end of the year, you will be released from the debts you owed at the date of the order.

Can I apply for a debt relief order?

You can only apply for a debt relief order if you meet the criteria:

• You have debts of £15,000 or less. (Please see below, certain debts are excluded)
• Your disposable income is £50 or less per month
• Have assets worth £300 or less.
• If you own  a motor vehicle it must must be worth £1,000 or less
• For the last 3 years you must have resided or carried on a business in England or Wales.

• You will not be able to apply for a debt relief order if:

  • You are currently bankrupt
  • You have a bankruptcy restriction order
  • You currently have been issued with a Bankruptcy Petition by one of your creditors, however dependant on the date of the hearing and if your creditors agree you may be able to apply for a debt relief order.
  • You are currently in an Individual Voluntary Arrangement (IVA) or are applying for an IVA
  • You have had a debt relief order in the last 6 years
  • You have been given a Debt Relief Restriction Order or Undertaking
  • You have applied for an Interim Order

What type of debts can be included in a debt relief order?

Only certain types of debt can be included in a debt relief order. These are:

• Credit cards, overdrafts, loans
• Rent, utilities, telephone, council tax
• Benefit overpayments and social fund loans
• Hire purchase and buy now - pay later agreements*

*Please note that if you have a hire purchase you may have to return the goods bought with these loans, unless someone else can pay the installments. You will not be able to carry on paying for the goods once you have a debt relief order.

There are certain types of debt that can't be included in a debt relief order. You must make alternative arrangements to pay these separately. If you do not keep up the contractual repayments, legal action may take place to recover the debt. These debts include:

• Court fines
• Child support and maintenance
• Student loans

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