A DRO is a debt solution that you can opt for if you have very low income and little to no assets.
When you opt for a DRO, your financial situation is assessed. If it’s found that you truly can’t afford to pay back your debts, then your DRO is put in place.
When this happens, all of your payments towards your debts are frozen for a year. During this year, you are obligated to seek debt advice and strive to improve your financial standing.
At the end of the year, your financial circumstances are reassessed. If it’s found that you can afford to pay back your debts now, then you’re obligated to pay them back.
However, if it’s found that you still can’t afford repayments, then the debt solution dictates that your debts are written off.