For those of you who may be wondering what DRO is. Debt Relief Order is a new insolvency procedure introduced by the insolvency service at the beginning of April. It is applicable in cases where a person has debts under £15000, income of less than £50 (after all the expenses have been deducted) and have assets to the value of £300 or less.

Is it like a bankruptcy then? And what is the cost?

Yeap, a DRO is similar to the bankruptcy procedure, but it costs less (£90) and the good news is that the fee could be paid in instalments. It is applied online via the experienced money advisor who’s been approved by the relevant authority to deal with DROs. Sounds simple in theory! (IMG:style_emoticons/default/smile.gif)

Hmm, interesting... Does it mean that a person with a car or bike worth more that £300 would not be eligible for these DROs?

That can't be right as it would exclude most of us! I know cars depreciate real fast, but £300 seems a bit low!

if i remember it correctly, cars dont count as assets unless they are worth more than a £1000, but please check as am not too sure. Citizens Advice Bureaus should be able to give most up to date info and advice.

Believe, it's correct, bigbird. Also forgot to mention that student loans cannot be included. Debt Relief Orders last for one year and after which period applicant should be free of the debts (listed on the order!) (IMG:style_emoticons/default/smile.gif)