We have offices in Northampton, Banbury, Coventry, Hitchin, Milton Keynes and Spalding

BRI Business Recovery and Insolvency

We are an independent company of insolvency practitioners committed to finding the right solutions for businesses and individuals in financial difficulty

Debt Relief Orders (“DRO”) 10 years on.

Debt Relief Orders (“DRO”) 10 years on.

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.