How can I get a Debt Relief Order?

4 May2021

If you're struggling with unsecured debts likecredit cards,overdrafts or personal loans, you might be able to qualify for a Debt Relief Order (DRO) and write those debts off. However, it is a form of insolvency and it's not an easy way out of debt: it places restrictions on your borrowing and it's only available to people who really need to enter a DRO.

If you're wondering how to do get a DRO because you have no other way to repay debt, we can help you. The first step is to speak to one of our debt advisers.

Enter your details into the DRO enquiry form on this page to speak to us .

We would discuss your options with you. Generally, you might qualify for a DRO if your debts were up to 15,000 and you don't have much in the way of income or assets.

If your assets are worth no more than 300 in total and your disposable income is 50 a month or less, then we might recommend a DRO.

What is a Debt Relief Order?

A DRO is an alternative to bankruptcy and is a form of insolvency. It costs 90 to apply for a DRO, whereas bankruptcy costs 700 to apply in England and Wales - so a DRO can be a low-cost way to deal with severe debt problems, helping people who can't afford bankruptcy.

On a DRO, your unsecured debts are frozen for 12 months, you do not have to repay anything and your lenders cannot chase you for money, and at the end of the payment holiday your debts are written off - unless your circumstances have improved and that means you can start making payments again.

A DRO would be recorded on your credit record, which makes borrowing money more difficult and/or expensive for six years. You can only enter into one DRO every six years.

Click here to find out whether you might qualify for a Debt Relief Order.

How do I apply for a DRO?

Entering into insolvency isn't an easy decision, so speak to a trained debt adviser first about your options.

If we recommended a DRO as your best option, we would put you in touch with an Approved Intermediary in our DRO team. Approved Intermediaries are the only ones who can actually make DRO applications.

You would be allocated your own Approved Intermediary, who would help you to apply for the DRO. You would pay a fee of 90 to the Insolvency Service if you applied for a DRO. The fee is always payable. However, in some cases you may be able to pay the 90 fee in instalments if you need to.

Once the application is sent, the decision is down to the Insolvency Service and is out of our hands - if it's rejected, you and your Approved Intermediary will be told why.

Click here if you have any more questions about Debt Relief Orders.

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Tags: debt, debt relief order, DRO, credit cards, overdrafts, personal loans, bankruptcy, debt advice

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