Debt relief orders (DROs)
Produced in partnership with Simon Passfield of Guildhall Chambers
Practice notesDebt relief orders (DROs)
Produced in partnership with Simon Passfield of Guildhall Chambers
Practice notesWhat is a DRO?
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:
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for a liquidated sum payable either immediately or at some future time
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not secured
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not an excluded debt
Under Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 9.2, an excluded debt means:
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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
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any obligation arising under a criminal confiscation order
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student loans
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damages in respect of the death of or personal injury to any person
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a crisis loan or budgeting loan made under the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)
Who may apply?
An applicant for a DRO must:
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be unable to pay their debts
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be domiciled in
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