Debt Relief Order (DRO)

A debt relief order is a way to get your debts written off. If you have a low level of debt and have few assets or if you have qualified our specialist Debt relief order team can apply to the Insolvency Service for you.

If you live in Scotland, a debt relief order will not be an available option for you. In Scotland, a Minimal Assets Process (MAP) bankruptcy is a similar solution, but It is important to note that it has different risks, fees and benefits associated with it.

What is a DRO?

A debt relief order is a method for avoiding repayments of debts in cases where you have low financials as well as a minimum number of assets that can be used for paying of the debts.

Benefits Drawbacks
• One of the pertaining advantages of DRO is the freezing the debt payment for a specific period. • The DRO is only an available option for you if you have a collective debt amount is under £20,000. If Financial situation improves this could affect DRO
• A Debt Relief Order allows you to pause the payments of the debts towards your creditors for at least 12 months. • In addition, you are required to live in England, Northern Ireland or Wales for obtaining a Debt Relief Order (DRO).
• You can resume your potential workability without worrying about the repayments of your debts. • The initial fee for requesting insolvency is £90, which you will need to pay.
• With freezing the payments, you can utilize your remaining assets for managing your finances. •The insolvency agency that you have contacted will look into your profile and will approve or reject your application.
• There is no need to appear in court even with formal debt solution as DRO. • The DRO will appear on the public register. This will affect your reputation in terms of credit report.

How does a Debt Relief Order (DRO) work?

Intermediaries including debt advisors that approve or reject your proposal for the order can only improve the DRO. Debt advising organizations offer services of acting as intermediaries and allowing the assessment of your proposal with your pertaining situation.

Once the intermediary consultant has approved your application, the intermediary will file your DRO application. The intermediary will not charge a processing fee in terms of completion or application submission.

The Official Receiver will initiate the debt relief order, once you have received the receipt of the application as well as the fee. The Official Receiver will administer the order without the involvement of the court in case you have met the requirements of the order.

With the ignition of the order, you, as well as your insolvency administer will receive the notice regarding the terms and conditions of the DRO. This will nominate the duties as well as restriction imposed with the order.

Adding an entry to the Electronic Individual Insolvency Register will allow you to monitor the details of your DRO. In case your name on the register can cause adverse circumstances to you or your associated member, you can request the court to remove your name form the register.

Payments in DRO:

During the period of your Debt Relief Order, you are not required to make debt payments to your creditors. However, some exceptional payments are to be made even with the DRO in effect. These include:

 Payments to your property owner for the house or land you have rented.

 Payment to bailiffs or enforcement agents, that have taken control of your belongings as a result of goods agreement.

 Normal household payments including council tax, utility bills, rents etc.

 Debts that are not included in the DRO statement.

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