Yes and No. The answer to this question largely depends on which types of debt you have.
First and foremost, to qualify for a DRO, the following will need to apply:
- You are unable to pay your debts
- You must not have more that £30,000 of debt
- You must not have more than £75 of spare income after you have paid your bills
- You don’t own property
- You can not have more than £2,000 of assets or savings
- You cannot have had a former DRO within the previous six years.
- You cannot have another current debt solution
- You’ve lived in or owned property in England, Wales or Northern Ireland in the last three years.
If you qualify for a DRO based on the above criteria, then you can include the following debt:
- Credit cards
- Overdrafts
- Personal Loans
- Rent arrears
- Utility bill debt
- Council Tax debt
- HMRC debt
- Benefits overpayments
- Buy now, pay later agreements
- Bills for services like vets or solicitors
- Debts to family or friends
- Business debts
There are some debts that cannot be included:
- Court fines
- Child support or maintenance
- Student loans
- Social fund loans
- Compensation for death and injury
A DRO last for about a year unless your financial situation improves. Once the DRO ends, most of your debt will then be written off.
To find out more, visit our Debt Relief Order pages