Debt Relief Order

What Is A Debt Relief Order (DRO)?

A Debt Relief Order (DRO) is a quicker and cheaper alternative to bankruptcy. The qualifying criteria for a DRO is restricted and therefore a DRO is only really suitable for debtors who have few or no assets (less than £1000 and not homeowners) and little disposable income (less than £50 per month).

How long does a Debt Relief Order take to process?

Upon receipt of relevant information and payment of your £90 submission fee. Your approved DRO intermediary will submit your DRO application to the Insolvency Service. It then takes 10 working days for them to make a decision on your application.

Debts covered in a Debt Relief Order?

Household utility bills, council tax and consumer debt like credit and store cards are included in a DRO. Some debts known as excluded debts can’t be included in your DRO with the most common being criminal fines, child maintenance, TV licence arrears, loans from DWP and any debts as the result of fraudulent activity.

Who can process a Debt Relief Order?

Debt relief orders can only be completed by an approved intermediary and competent authorities. Approved intermediaries will be mainly experienced debt advisors attached to debt advice organisations such as a Citizens Advice Bureau. Orchard Debt Solutions do not provide a DRO application service.

Debt Relief Order Advantages
  • Your debts will be written off after 1 year.
  • Creditors cannot take further action against you.
  • The cost of £90 is less than petitioning for bankruptcy.
Debt Relief Order Disadvantages
  • Qualifying criteria very strict.
  • Your credit rating will be affected.
  • If your circumstances change, you may be required to repay creditors.
What To Do Next

Contact Orchard Debt Solutions in confidence for a free and informal discussion on 01257 543013 or 07772 203774.

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