A DRO is set up through the Insolvency Service and DRO advisor. It allows for debts to be paused for up to a period of 12 months. Once you are in a DRO, you cannot be forced to make payments to your creditors, and they cannot contact you about the debts.
You will be charged a fee of £90 to apply for a DRO, but this does not have to be in one lump sum. Applications cannot be progressed until this fee has been paid.
If you are still unable to pay your debts after the 12 months, debts will be written off, and you won’t need to make payments towards them again.
A DRO is only available in England, Wales and Northern Ireland. Those seeking help in Scotland may be able to apply for a similar solution called a Minimal Asset Process (MAP).