What Is A DRO?
Debt relief orders (DROs) are a new form of insolvency measure in the UK. A DRO is a simplified, quicker and cheaper alternative to bankruptcy in the United Kingdom. It’s suitable for debtors who have few or no assets (less than £1000 and not homeowners) and little disposable income (less than £50 per month). It’s possible to apply for a DRO without attending court and the fee is £90. The fee may be paid by instalments prior to applying for the order. When a debt relief order is made a DRO period starts, which is normally a year. During the time of the DRO there’re certain restrictions on what can be done, and what can’t be done whilst on the agreement.
Debt Relief Options
Debt Relief Order
Debt Relief Order Alternatives
Free Debt Management Plan
Debt Management Plans are available across the UK although people dont take advantage of them. So regardless of where you live in the UK, if you’re struggling to keep up with payments to your debts. A DMP can help get everything in order, therefore making things that little bit more manageable to help ease stress over debt problems.
Individual Voluntary Arrangement
An Individual Voluntary Arrangement (IVA) is a formal and legally-binding agreement between you and your creditors to pay back your debts. This is agreed over a period of time and any remaining debt after this is written off. An insolvency practitioner deals with the creditors throughout the duration of the IVA so you don’t have to.
Bankruptcy is a legal status that usually lasts for a year (see ‘How long does bankruptcy last’ below) and can be a way of clearing debts you can’t pay.When you’re bankrupt, your non-essential assets (property and possessions) and excess income are used to pay off your creditors (those you owe money to). At the end of the bankruptcy period, most debts are ‘discharged’ (cancelled)