Debt Relief Orders
Debt Relief Orders (DRO) came into force in the United Kingdom on April 6, 2009. They are a form of insolvency solution that assists people with no assets and minimal extra income. They are not obtained through the courts, unlike other debt solutions.
To qualify for a DRO you have to have debts of less than £15,000 and have no more than £300 worth of total gross assets. Debt Relief Orders were designed to provide a solution for people unable to back pay their debts within a reasonable period of time and for those people that are unable to improve their financial circumstances.
The full Criteria are as follows:
After the application has been made and the payment received, an Official Receiver can make the order. If you meet the criteria, the process will go ahead.
Debt Relief Order : The Process
During the term of a Debt Relief Order, you will be protected against any action by the creditors that have been included in your application. The entire process takes one full year but you can apply to extend the order or to change certain restrictions.
If your circumstances change you will have to let this information be known to your Official Receiver. If you come into a financial windfall, for example, you will be required to pay back your creditors.
There are a number of restrictions when you enter a Debt Relief Order:
These restrictions may be extended if the Official Receiver determines that you have acted dishonestly or improperly.
Are you eligible for a Debt Relief Order ?Try our simple debt solution calculator to find out.