Debt Relief Orders
What is a Debt Relief Order?
- A Debt Relief Order (DRO) is an alternative option to bankruptcy.
- When introduced, it was a means of helping people seeking bankruptcy, but couldn’t afford is higher costs.
- It more specifically helped those with low incomes with unaffordable levels of debt.
How Can a Debt Relief Order Help Me?
You may be granted for a Debt Relief Order for a low cost fee of £90, if:
- You have debts below £15,000.
- You have gross assets below £300.
- Your surplus income is below £50 per month.
What Kind of Debt is Accepted?
You may be accepted for a Debt Relief order if you have debt from one or more of the following areas:
- Credit or store cards/catalogue debt, personal loans or overdrafts.
- Overpayment of tax credits or benefits.
- Hire Purchase and Conditional Sale agreements.
- Utility arrears.
What Kind of Debt is Not Accepted?
- Court fines.
- Student loans.
- Child maintenance payments and Child Support Agency debts.
How Long Does a Debt Relief Order Last?
- A Debt Relief Order lasts for 12 months, although your debt will not be cleared until the end of this timeframe.
- If you keep to the agreement set out under the Debt Relief Order, no further action can be taken against you during the 12 months.
What Should I Do if My Financial Situation Changes?
- Should your situation improve whilst during this period, you should inform the Official Receiver as you may be requested to complete a new financial statement.
- If your surplus income is found to exceed £50 per month, the Debt Relief Order may be rescinded.
- You must let the Official Receiver know if you inherit any assets or receive any other funds.
What are the Restrictions of a Debt Relief Order?
Failure to meet the terms set out in the Debt Relief Order may result in the Official Receiver extending the period of time on your restrictions.
- You will be unable to gain credit in excess of £500 without informing the creditor that you have received a Debt Relief Order.
- You cannot continue a Directorship of a limited company without leave of the court.
When Can I Call?
- You can call the debt relief helpline any time; 24 hours a day, 7 days a week, 365 days a year.
How Can I Get Help and Advice with a Debt Relief Order?
- Call us free on 0800 0789 544.
- Email: info@e-insolvency.co.uk
