Debt Relief Orders are a formal insolvency process. They help people with serious debt problems to move forwards. They're referred to as a DRO.
With a Debt Relief Order in place, creditors cannot act to recover debt. Discharge from the DRO process (and from your debts) takes place after a year.
The application fee for a DRO is £90. The bankruptcy fee in England and Wales is £680. A Debt Relief Order is a low-cost debt solution.
You must live in England, Wales, or Northern Ireland. You cannot live in Scotland.
Your total debts must be below £20,000.
You cannot own your home.
Your assets (in total) must be worth under £1,000. Assets do not include regular household objects or similar basics.
You can own a vehicle for which you have a fair need. The vehicle must be worth under £1,000.
Your spare income cannot be more than £50 per month. This takes into account your bills and other costs. If you receive benefit income, a DRO may be suitable. Plenty of people in paid work also qualify.
To apply for a DRO, you must approach an “approved intermediary”. You can contact the Money Advice Service to find one to help you. Bright Oak does not directly provide DRO services.
If you’re near £20,000 of debt, don't delay. Interest (or further debt) may mean that you no longer qualify if the debt increases.
A joint Debt Relief Order does not exist. Couples can each apply for their own DRO.
The one-off payment to apply for a DRO is £90.
Your details will be added to a public insolvency register.
It will have a serious effect upon your credit rating.
Debt relief orders don't receive the same publicity. Despite this, they are a better option for a lot of people.
If you qualify for a DRO, it may be the cheapest and quickest way to clear your debts.
For debt help, please contact our friendly expert advice team today.