All You Need To Know About Debt Relief Orders (DRO)
The financial climate within the UK continues to be a
perilous place and it is extremely common for people to find themselves
accruing higher levels of debt than they want and/or can manage.
However,
a Debt Relief Order is one of the ways in which those with significant
levels of debt can find a solution to keep the creditors at bay. Here we
take a look at the features of Debt Relief Orders, as well as the
benefits and risks associated with this type of debt reduction plan.
What is a Debt Relief Order?
Debt
Relief Orders were created in order to offer a binding and legally
recognised means for a small but specific group of debtors who cannot
obtain debt relief through other means.
A DRO is an order granted by an official receiver to help insolvent individuals address their debt after just one year.
Once
granted, the debtor is not required to make any other repayments toward
their debts during the time the order is in place and, if their
financial circumstances do not change during this period, their debts
will be written-off when the Debt Relief Order comes to an end after 12
months.
. Debt Management Plans are specific plans made depending
on an individual’s income and expenditure and are aimed to help them
repay and clear debts at a rate they can afford. The Debt Management
Plan will enable reduced monthly payments and could help against the
repossession of personal belongings. A Debt Relief Order is an order
people can apply for when they are unable to pay off their debts. DRO’s
are granted by the Insolvency Service and are a cheaper debt solution
than bankruptcy. Debt Relief Orders are aimed at people with debts less
than 15.000
Qualification for a Debt Relief Order
.Individuals can apply online through an approved intermediary if they meet the following criteria: