It is important to make sure you fully understand what a Debt Relief Order (DRO) is and what impact it will have. It is therefore, essential you seek debt advice before committing yourself to it. There are a number of criteria to meet which a debt advisor can advise you on to allow you to make sure it is the right solution for you.

Assets are anything an Official Receiver (OR) will deem as value. For a DRO these cannot amount to more than £300 or £1000 for a car, if you have more than this, it would not necessarily mean they would take them from you just that you would not be eligible to apply.

You will be advised about all these details by a debt advisor or the Authorized Intermediary submitting your DRO. You can however find more information about all the criteria and the effects of a DRO in some the publications by the Insolvency Service http://www.insolvency.gov.uk/guidanceleaflets/Guides.htm

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're looking for an alternative to Bankruptcy, Debt Advice Foundation provides a free, confidential helpline and can advise you of all your options. Click here to find out more.