A Debt Relief Order (DRO) can resolve debt worries. During this period, you do not make any payments towards debts and creditors are not allowed to chase you for money. If your situation remains unchanged and you’re still unable to pay your debts, these debts are negated. A DRO will also apply if your debts do not exceed £20,000. This limit was due to be raised to £30,000 in June 2021 but was deferred to a later date due to the ongoing pandemic. There are certain debts such as student loans or a tv license that are excluded from the DRO. Furthermore, outgoings such as rent and mortgages will still need to be paid. A DRO is used to address debts that have built over time and which you are now struggling to maintain.
Your DRO may be revoked if it’s found that you can pay some of your debts off. Having a DRO will affect any future borrowing as similar to other debt solutions it remains on your credit history for six years. Your details will also be entered into the bankruptcy and insolvency register when your DRO is approved. This information is accessible for members of the public and future employees to see.
An officer within the bankruptcy court organises a DRO. An authorised debt advisor must approve you for your DRO application to advance. Known as an ‘approved intermediary’, they provide support with paperwork.
How we can help
We can assist by providing you information on the process, however one it is n the hands of the approved intermediary they will guide you through all aspects. We would be delighted to work alongside yourself and them to examine your situation. At Lestons we always aim to be fair to our clients, as such, out of honesty there is little involvement we can impart as in our experience these appointed individuals are extremely proficient in their role. Should you wish for our advice then just create a case using the link at the top of the page.
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