Debt Relief Order (DRO)
A debt relief order (DRO) is a debt option when you have £50,000 or less debt and have a maximum monthly disposable income of £75. Also, you don’t have any assets such as properties, a vehicle over £4,000 or savings and other assets over £2,000.
It presents an alternative to bankruptcy, and like bankruptcy, you’ll usually be discharged after a year, at which point all debts included will be cleared.
Debt Relief Order (DRO)
Benefits of a DRO
What are the benefits of a DRO? We’ve compiled a handy list of the main points below, click a heading to read more.
Low Cost
A debt relief order can be a low-cost alternative to bankruptcy.
No Repayments
You don’t pay anything towards your debts for 12 months, after that they’ll be written off.
No Creditor Demands
Your creditors can’t pursue you for your debts during the 12 month period.
No Court Appearances
Although a DRO is a formal debt solution, you don’t need to appear in court.
Risks of a DRO
What are the risks with a DRO? We’ve identified and listed some of the main drawbacks below, click a heading to read more.
Homeowners Excluded
You can’t apply if you’re a homeowner.
Credit Rating Impact
A DRO will affect your credit score and your ability to get credit will be affected for six years, from the date the debt relief order is created.
Risks To Employment
If you work in certain financial sectors, such as an insolvency practitioner or solicitor, you may not be able to continue working in these roles.
The Debt Centre Provide Friendly Debt Help and Practical Solutions
We treat every customer as an individual and our support is tailored to your personal circumstances, ensuring your best interests are central to our ethos.
We will run through all the options available to you and then we will guide you through the next steps of the process.
We define ourselves by our values as a business. These values inform the way treat our customers and our staff.
Practical Debt Management Solutions
Individual Voluntary Arrangement
Debt Management Plan
Trust Deed
Debt Relief Order
Debt Consolidation Loan
Bankruptcy
