The following Restructuring & Insolvency guidance note Produced in partnership with Simon Passfield provides comprehensive and up to date legal information covering:
DROs are 'a new and simplified way of wiping the slate clean for debtors who are too poor to go bankrupt.'
A DRO is made in respect of qualifying debts.
A qualifying debt means a debt which is:
for a liquidated sum payable either immediately or at some future time
not an excluded debt
Under IR 2016, SI 2016/1024, r 9.2, an excluded debt means:
any fine or obligation arising under an order made in family proceedings or a maintenance assessment or maintenance calculation made under the Child Support Act 1991
any obligation arising under a criminal confiscation order
damages in respect of the death of or personal injury to any person
a crisis loan or budgeting loan made under the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)
An applicant for a DRO must:
be unable to pay their debts
be domiciled in England or Wales on the application date, or at some time in the last three years have been ordinarily resident, had a place of residence or carried on business in England or Wales
not be involved in another formal insolvency procedure at the time of the application
owe less than £20,000 (excluding unliquidated debts and excluded debts)
have monthly surplus income of £50 or less
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.