Applying For a Debt Relief Order
If you are struggling to meet your monthly payments, you may be eligible for a Debt Relief Order (DRO). This is a legal arrangement that provides you with a period of time to pay off your debts, usually 12 months. This type of debt relief order does not require court action and does not affect your credit rating. However, debt relief orders are subject to strict restrictions. For example, you cannot apply for a debt relief order if you owe court fines. Your application for a debt relief order will be supervised by an adviser, who will check your eligibility and apply for the order on your behalf. The application will cost PS90, and you can pay it in six monthly installments. The process will not involve a court appearance, and the debt relief adviser can help you understand your rights.
Once the application is approved, you will have to inform your bank and building society that you have applied for a debt relief order. If you fail to do so, they can refuse your new account application or add additional restrictions. For example, you cannot write a cheque that is likely to bounce and you cannot borrow more than PS500 without informing your lender. Moreover, you cannot act as a director in a company or promote a company if you have an order.
The DRO you apply for will prevent creditors from trying to recoup any of your debts. It will last for 12 months, after which your debts will be written off. It will also impose restrictions on you similar to those in a bankruptcy. These restrictions include not acting as a company director or obtaining credit over PS500 without disclosing your DRO status.
If you are considering applying for a DRO, you should check out other options first. It is important to understand how to obtain a DRO, how to find a qualified adviser, and how to pay the fee. In addition to this, you should know that you are not eligible for a DRO if you are currently undergoing a bankruptcy or an IVA. The application fee for a DRO is PS90, but you can get assistance from charities if you need it.
A Debt Relief Order can be a great way to get your finances back on track. It is a legal agreement that prevents your creditors from taking further action, and even stops them from trying to collect your debts for a year. It must be obtained through an approved intermediary, and the intermediary must have the experience and training needed to apply for the order on your behalf.
A DRO can help you get back on your feet financially by writing off your debts. The order is designed to help those with low incomes and low debt levels. If you are in need of help deciding whether or not to apply for a debt relief order, a debt expert can advise you and help you through the process.
Applying For a Debt Relief Order was first seen on Debt Worries