What is a Debt Relief Order?
A debt relief order (DRO) is a debt solution for those who have few assets and little income. In a debt relief order, most creditors cannot take action to recover your debts for 12 months, after these 12 months your debts are then written off.
Do I Qualify for a Debt Relief Order?
In order to qualify for a debt relief order, you must;
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be unable to pay your debts
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have a total debt level of less than £15,000
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have total assets of no more than £300
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have less than £50 of spare income to pay creditors
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not have had a debt relief order in the previous 6 years
What are my Assets?
You can have assets worth up to £300. Lots of basic household items such as cutlery, crockery, cookers, televisions, beds or furniture do not count as assets.
The value of your assets is worked out using the resale value, not how much the item was worth when you bought it, unless it is brand new. Assets may include antiques, luxury items or valuable collections, stocks, shares, premium bonds and savings.
Warning: If you have debts secured on a property you are unlikely to qualify for a DRO, as the value of the property will count as an asset.
What if I Don't Qualify for a Debt Relief Order?
If you don't qualify for a debt relief order, and many people don't, then don't worry. There will still be a debt solution that's right for your particular circumastances. Call us now on 0800 988 7701 to discuss the best option available for you.
Pros and Cons of a Debt Relief Order
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alternative to bankruptcy
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all unsecured debts are cleared after 12 months
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there is a cost of just £90, which is paid to the Insolvency Service
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your creditors can't take any action against you – for example, taking you to court or making you bankrupt
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interest and charges are usually stopped
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your bank account may be frozen
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will be recorded on a public register called the 'Individual Insolvency Register'
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your tenancy could be affected if you rent your home
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will adversely affect your credit rating
Further Information
What Is A Debt Relief Order? Want to know more? Contact us now using the contact form or call us on 0800 988 7701 for no obligation help and advice.
Our debt relief order is available in the following countries:
In Debt? Dealing With Your Creditors - Must read guide from the Insolvency Service.
