You cannot start a Debt Relief Order for free. There is a one off fee that has to be paid before your application can be submitted.
- What is the cost of a DRO
- Do you have to make ongoing payments?
- What if you get a windfall during a DRO?
Want to find out if a DRO is suitable for you? Give us a call (0800 077 6180) or complete the form below to speak to one of our experts
What is the Cost of a DRO?
You will have to pay a fee of £90 to apply for a Debt Relief Order. This fee is to cover both the fees charged by the debt councillor and the Official Receiver.
The fee will have to be paid before your application is submitted. Normally this will be at the Post Office in cash or with a Debit Card.
If your application for a DRO is rejected your fee will not be refunded.
Do you have to make Ongoing Payments towards your debts?
There is no requirement for you to make any payments towards your debts once your Debt Relief Order (DRO) has started.
In order to be eligible for this debt solution your disposable income must be less than £50 a month. As such it is accepted that you cannot afford to make any payments to your creditors.
If your financial situation improves and your disposable income increases above £50 a month during your DRO the agreement may fail. You will then be responsible for paying your debts again.
What if you Receive a Windfall during a DRO?
If you receive any type of windfall during your DRO you must inform the Official Receiver (OR) who is responsible for managing your case. They will decide the appropriate course of action.
Where the amount you have received is less than £1000 the Order will remain in place. For amounts between £1000 and £2000 it may be cancelled. This will depend on the amount of debt you owe and other personal circumstances.
Windfalls received during a DRO of more than £2000 will often lead to the failure of agreement. You will then become liable for your debts once again.
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