Debt Relief Orders (DRO)

With the issuance of the Debt Relief Order (DRO), a debtor is discharged from unsecured debts which do not exceed €25,000. If the debts are over €25,000 and the debtor is deemed eligible, with the issuance of the DRO he is liable for the remaining debts.

Legislation

Information related to Debt Relief Orders

Eligible to apply for the Debt Relief Order Scheme are those who meet the main criteria below:

a) The debtor must be insolvent (unable to repay all his debts) and most likely will continue to be so for a period of one year from the date of his application for the issuance of a Debt Relief Order.

b) The debtor’s assets, including real estate (regardless of whether it is mortgaged for a debt greater than the value of the property), must not exceed the amount of €1,000.

c) In addition to the above, he can have a vehicle worth up to €4,000, as well as the tools or other equipment necessary for his work with a total value not exceeding €6,000.

d) The monthly net disposable income, after deducting the reasonable living expenses should not exceed the amount of €200. Reasonable living expenses (of all household members as well as their income) are taken into account.

e) The debtor has not been declared bankrupt before the date of submission of the application or must be discharged from bankruptcy for at least 5 years. In addition, no other restructuring plan must be in place.

f) The debtor’s usual residence is in the Republic of Cyprus.