Guide to Debt Relief Orders (DRO)
Why choose a Debt Relief Order?
A Debt Relief Order lends itself typically to those individuals who have limited assets, who are not homeowners and those who obtain a small overall income. A DRO is seen as a more affordable alternative to bankruptcy. The DRO allows you a period of 12 months, where in most cases, your creditors are prevented from retrieving the debts. Furthermore, once the period has ended, the debts are disregarded.
- DRO Application Process
- Qualifications for a Debt Relief Order
- Debt Relief Order Debts included.
- Do I need to include my hire purchase or conditional-sale agreements?
- What if I am not in arrears?
- What if the item is a vehicle on hire purchase or conditional-sale agreement?
- Is it a risk if my debts total is just short of £15000?
- How do I avoid this issue?
- What does not count toward the £300 worth of assets?
- What is included as an asset?
- How does the value of the asset come about?
- Are there any steps I need to take before I submit an application?
- The costing of a Debt Relief Order
- When should I start paying these installments?
- Is there a time period for the installments?
- If I change my mind is there a refund?
- I have mistakenly left a debt out can it be included?
- What happens if the extra debt moves the total figure to beyond £15000?
- Is it a problem if the amount I owe is not accurate?
- What does the Official Receiver do next?
- How do I know if my application has been accepted?
- Can the creditors raise objections to the Debt Relief Order?
- What occurs if the creditors cannot object and the Debt Relief Order is maintained?
- Do I need to communicate my entire financial situation with the Official Receiver?
- What are the Implications of a Deft Relief Order?
- What are the restraints of a Deft Relief Order?
- Are there implications if my integrity comes into question?
- What if I reject the 'debt relief restriction undertaking'?
- Are there implications to my bank account?
- Can I open up a new bank account or building society?
- Are there any implications to my credit rating?
- Is there a period of time before my Debt Relief Order will be withdrawn from the Individual Insolvency Register?
- There are three alternatives to a Deft Relief Order?