Check your options for getting out of debt

Summary

If you don’t have any money left after paying your priority debts and living costs, or you only have a small amount, check if you can increase your income. You should also check if you can reduce your living costs. If you still don’t have enough money to pay your debts you might be able to: If you get a DRO, you won’t pay anything towards the debts in the order for 12 months. At the end of the 12 months you'll no longer owe those debts. While the DRO is in place your creditors can’t ask you to pay any debts included in it or start any action against you. You might be able to get a debt relief order if: * you have £75 or less left over each month after paying your living costs * you have £2,000 or less in savings and other assets * you haven’t been given another DRO in the last 6 years * you’ve lived or worked in England or Wales for the last 3 years If you have a vehicle worth less than £4,000 you don’t have to include it in your assets. If your vehicle is worth more than £4,000, you don't have to include it in your assets if it's been adapted because you have a disability. You can only exclude 1 vehicle from your assets and you can't exclude it if you only use it for work. You.

Key information

• you have £75 or less left over each month after paying your living costs
• you have £2,000 or less in savings and other assets
• you haven’t been given another DRO in the last 6 years
• you’ve lived or worked in England or Wales for the last 3 years
• if you don’t meet the criteria or give extra information when you’re asked for it, your application could be turned down - check what to do if your DRO application is refused
• it won’t cover all debts - you'll still have to pay back child maintenance arrears, court fines, student loans, social fund loans, personal injury compensation and any debts caused by fraud
• if you have rent arrears in a DRO your landlord can’t force you to pay what you owe, but they can still try to evict you
• it might make it harder to borrow money in the future - check how a DRO will affect your credit rating
• you’ll have to tell the creditor about your DRO if you want to borrow more than £500 during the 12 months
• you won’t be able to set up your own company or be a director of another company, even under a different name, without the court’s permission
• check you meet the rules to get a DRO
• explain how a DRO might affect you

Practical guidance

• Source: Check your options for getting out of debt

Related topics

More in this area

• Check if a financial service has followed the rules
• Check if you have to pay a debt
• Check the rules after you go bankrupt
• Check what an IVA is
• Cold called by a debt management plan provider