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Your Guide To DROs or Debt Relief Orders

This debt solution is only accessible for residents of England, Wales, and Northern Ireland.

Debt Relief Order or DRO allows your unpaid debt to be written off in a reasonable period. If you reside in Scotland, the same order serves its purpose through a minimal asset process or MAP since a DRO is only available for people living in England, Wales, and Northern Ireland. However, you must be aware that it differs in terms of costs, benefits, and risks.

If you’re living in England, Wales, and Northern Ireland with moderately low debt and few assets, a DRO normally suits you.

In this article, you’ll get a glimpse on how you can qualify for a DRO, and all the other highlighted information that you need to know. Reading the other topics highlighted in this post will help you understand your options and how a DRO works.

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Urgent Updates For Residents in Northern Ireland

The Insolvency Service of Northern Ireland is closing as of March 24, 2020, until further notice, due to the COVID-19 pandemic.

In this regard, it would not be possible for the residents of Northern Ireland to proceed with a DRO (debt relief order) application. We can cater advice regarding your DRO, but the application process will proceed until the service resumes.

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FAQs About Debt Relief Orders

These are most of the commonly asked questions that are associated with debt relief orders.

Can I get a DRO even when I’m working?

You can still get a DRO even when you’re working if your disposable income is less than £50 after satisfying all your household essentials and bills. This entails that DRO is intended for people with low incomes. Your income comprises the payment from your wage, pensions, or benefits, and other sources. If you are determined eligible, you might want to find out how to apply for a DRO.

What happens after a debt relief order?

After a year (12 months) from the date that your DRO is approved, all the debts included will be written off. The details of your DRO will remain for 3 months in the public insolvency register and 6 years in your credit record. For further details, you can refer to our posts on what happens after a DRO.

How long will a DRO remain on my credit record?

A DRO will stay on your credit file six years from the date it was approved. This can impact your credit file and affect you in terms of creditworthiness. Check more of this by reading our guide on how a DRO affects me.

Can a DRO stop bailiffs or enforcement agents?

Your creditor can still collect payments or remind you about your debts. However, they cannot enforce further actions to compel you in paying the debt.

If your creditor uses bailiffs or enforcement agents to collect the debt, this will be prohibited once a DRO is approved. This happens when the debt is included in your DRO.

Moreover, certain debts can still be pursued through the use of bailiffs. Debts such as criminal fines, child support arrears, and other debts that cannot be included in a debt relief order. You can also check more about your creditor’s response to a DRO.