10 April 2019: The insolvency Service has reported on the 10th anniversary of DRO. The Insolvency Service state that £2.3 billion worth of debt has been written off in DRO with 254,000 individuals successfully entering this procedure. The average level of debt per DRO is £9,400.
A DRO is an insolvency procedure, often described as a “mini-bankruptcy”, that is available to individuals with debts not greater than £20,000, although there are the following additional strict criteria that should also be met by the applicant:
- They have £50 or less left over each month after usual household expenses have been paid;
- They don’t own their own home;
- Other savings or things of value owned are worth less than £1,000 (some assets are ignored when working out the value, such as household furniture);
- A car owned is not worth £1000 or more, unless it’s one that’s been specially adapted because of a disability;
- It had been at least 6 years since any previous DRO was made and no other formal insolvency procedure is being entered into, such as bankruptcy or an individual voluntary arrangement (IVA)
- The applicant has lived, had a property, or worked in England or Wales in the last three years.
Should an individual be concerned with their current financial position or a company director in need of advice in respect of a company’s financial difficulties, please call any one of BRI’s experienced management team.