DEBT RELIEF ORDER (DRO)
* May not be suitable in all circumstances. Fees apply. Your credit rating may be affected.
A DRO is a formal insolvency solution designed for individuals with low income, minimal assets, and relatively low levels of debt. It can help cancel your debts if your financial situation does not improve within 12 months. During this period, any interest and charges on your debts will be frozen, and you won’t need to make payments or deal with your creditors directly. However, you must meet specific eligibility criteria to qualify for a DRO, find out more here: https://www.gov.uk/guidance/how-to-get-a-debt-relief-order-dro
Benefits
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A Debt Relief Order is a formal solution, which means creditors included in the DRO cannot take legal action against you or chase you for payments.
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All debts in a DRO are typically cleared after one year, if your circumstances do not improve.
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During the 12 months that the DRO is in place, you will not be required to make payments towards the included debts.
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Interest and charges to debts included in the DRO are frozen for the 12-month period.
Risks
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A DRO will affect your credit rating and remain on your credit file for 6 years, which can significantly limit your ability to obtain credit in the future.
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A DRO may affect your employment, particularly if you work in certain professions (e.g. financial services).
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If your circumstances improve during the 12 months, (e.g. you receive a lump sum or increase in income), your DRO could be revoked, and you may be required to repay your debts.
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You must not have savings or valuable items worth more than £2,000
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It is a criminal offence to provide false information when applying for a DRO.
Achieving debt freedom,
Starting with just 3 simple steps
Step1
Take the first step. Answer a few simple questions to give us an idea of your financial situation.
Step2
Speaking about debt can be tough. Our empathetic, trained experts will explain how we can help.
Step3
Once we’ve discussed your options, it’s over to you. By this point, debt freedom is in your grasp.
We’re ready to talk
* May not be suitable in all circumstances. Fees apply. Your credit rating may be affected.