If your debts are less than a prescribed amount, you may meet the eligibility criteria for a Debt Relief Order. This is similar to bankruptcy as a way of preventing creditors from pursuing you in respect of your liabilities. Provided you adhere to the conditions of the DRO, your debts are written off after a 12 month period. To meet the eligibility criteria for a DRO you must have:
- Less than £20,000 of unsecured debts (e.g excluding Hire Purchase or loans secured on any asset)
- Less than £50 per month surplus income
- Less than £1,000 worth of assets
- Lived and worked in England and Wales for the last 3 years
- Not applied for a DRO in the last 6 years
DROs are administered by authorised intermediaries who you should contact to get appropriate debt advice and assess whether a DRO would be appropriate for you.