A Debt Relief Order (DRO) is a way to deal with your debts if you:

• Owe less than £30,000 in total

• Do not have much spare income - usually less than £75 per month

• Do not own your own home

If you have a DRO, you:

• Stop making payments towards your debts (including interest) for 12 months

• Need to follow certain rules ('restrictions') during that time

• will not need to pay the debts or follow restrictions after 12 months

A DRO can be cancelled if your financial circumstances change. It can be extended if you do not follow the restrictions.

You will still have to pay:

• Your rent and bills

• certain debts not included in the DRO, such as student loans or court fines

There are restrictions on what you can do while you have a DRO , you cannot:

• Borrow more than £500 without telling the lender about your DRO​

• Act as the director of a company

• create, manage or promote a company without the court's permission

• Manage a business without telling those you do business with about your DRO

• Open a bank account without telling the bank or building society about your DRO

If the criteria are met, a DRO will be a low-cost alternative to bankruptcy.​

If you get a DRO:

• Your creditors cannot recover their money without the court's permission.​

• You are usually discharged ('freed') from your debts after 12 months.

You get a DRO from the Official Receiver (an officer of the bankruptcy court), but you must apply through an authorised debt adviser, who will help you fill in the paperwork.​

Further information, and a link to a list of authorised debtor advisers, can be found at www.gov.uk/options-for-dealing-with-your-debts/debt-relief-orders