-
Debt Relief Order (DRO)
A new way of writing off part or all of your debts after 12 months, a debt relief order allows you protection from your creditors, you can only apply for a DRO if you have less than £15,000 of debt and have minimal earnings and savings.
What is a DRO?
Only brought in a few months ago debt relief orders are a fast track insolvency solution, an alternative to bankruptcy and other debt solutions such as IVA‘s or debt management.
Debt relief orders should be looked at as a last resort, other debt advice may be recommended depending on your financial situation.
To qualify for a debt relief order you will need to have debts of £15,000 or less, and you must have £50 disposable income and very little savings/assets (£300).
When you take on a DRO, once accepted, it will be over twelve months and after that time your debts will be erased.
A debt relief order does have some similarities to bankruptcy apart from not having to go to court. If you take on a DRO you will not be able to be a company director, etc.
With any kind of debts all avenues should be explored and you can usually find free expert debt advice from your local Citizens Advice Bureau to be clear on every aspect of debt management.
8 Responses to “Debt Relief Order (DRO)”
- 9th November , 2009
[...] last three months there have been two hundred and nineteen insolvencies including IVA’s and DRO’s, which is positive as it is nearly nine percent lower than the same time the previous [...]
- 9th November , 2009
[...] Other options are bankruptcy or a debt relief order. [...]
- 10th November , 2009
[...] faced with bankruptcy there are little other options bar an individual voluntary arrangement or debt relief order depending on the amount of debt and other [...]
- 10th November , 2009
[...] break it down there were around four and a half thousand debt relief orders (DRO), over twelve thousand IVAs, and over eighteen thousand [...]
- 11th November , 2009
[...] only the interest portion of their bad debts could get help in a few different forms, such as IVAs, DRO’s, and debt management plans. [...]
- 15th December , 2009
[...] debt solutions include the Debt Relief Order (DRO), or individual voluntary arrangement (IVA). Both for different levels of [...]
- 16th December , 2009
[...] people have the choice of DRO’s – Debt Relief Orders, as well as other options in order to help them cope better with their financial situations and [...]
- 29th December , 2009
[...] debt solution could be something like an IVA (individual voluntary arrangement), or a DRO (debt relief order), for [...]
