Debt Relief Order: Have Your Debts And Financial Burden Written Off!

l What Is Debt Relief Order?

A Debt Relief Order (DRO) is a means by which you can get rid of your debts if you have very low levels of debts or only a few assets. DRO freezes the debt repayments and interests for a period of 12 months. If the financial condition within this period changes, then you can have all your debts written off.  

l What Are The Benefits Of Dro?

Debt Relief Order allows for all your debts repayments and interests to be freezed for a period of 12 months. So, you don’t have to pay anything for this period, during which if your financial condition changes and worsens, the debt is written off after the period of 12 months.

It is an effective way to prevent bankruptcy in the course of paying your debts off. Moreover, your creditors wouldn’t have to bother you again and again for making payments, and they cannot file any case or approach the court once you have applied for DRO.

l What Are The Risks Of Dro?

Debt Relief Order is not available to the residents of Scotland and can be applied for only if owe less than £20,000. This scheme is available for residents of England, Wales and North Ireland. It cannot be applied for if you are a homeowner and more importantly, it appears on a public register so that it could affect your credit score drastically. If your proposal for DRO is accepted, you would have to pay through £90 and then the specialists would be able to help you with the payments to your creditors.

l Procedure For Application For Dro

The first step to apply for Debt Relief Order is to find out your eligibility and whether you qualify for the scheme. You could seek advice from bank or money advisors who would tell you about the best options. Once you are sure to apply for DRO, you could collect the forms and fill them up for necessary applications.

The completed forms have to be returned to the DRO specialist scheme. The Insolvency specialist could then prepare the DRO application, which involves framing of a proposal. There is a small charge which you would have to pay for the application processing to the specialists and then the application is submitted.

After this, you have to wait for the receiver to let you know that your application has been accepted or update you about the status following which your debts are freezed.

l What Kinds Of Debts Are Covered By Dros?

Debts covered by DROs are called qualifying debts which include credit cards, overdrafts and loans, utility and telephone bills, arrear bills, benefits overpayments, hire purchase or sale agreements, business debts. There are certain conditions by which you can apply for DROs such that when you are unable to pay your debts, you don’t own a home or you have been a resident of England or Wales for the past three years.

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Created on Sep 5th 2019 01:23. Viewed 477 times.

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