Debt Relief Orders are a legal way to write off your debts. Usually, the order is granted for 12 months and the debts owed are written off at the end of that period. However, there are some restrictions on how you can benefit from the scheme.
You can get a Debt Relief Order if you can demonstrate you have no other means of repaying your debts. The main requirement is that you live in England or Wales. A small percentage of people are accepted for DROs. Nevertheless, it is still advisable to seek advice if you are considering this option.
You can apply for a Debt Relief Order through a debt adviser. They will help you fill in the necessary forms and will guide you through the process. Your application will be checked to ensure that you meet the eligibility criteria. Normally, you need to have lived in England or Wales for three years before you can apply for a DRO.
After you have paid the application fee of PS90, the Official Receiver will make an assessment of your finances. If they find you are eligible, the official receiver will inform your creditors that you are applying for a DRO. These creditors can then object to the inclusion of your debts. Alternatively, they can choose to accept the debts you have listed on your DRO.
Before you start applying for a Debt Relief Order, you must disclose all of your assets. For example, if you own a house or a car, you must let the OR know. This is to ensure that you are not included in a DRO that may not be applicable to you. There are exceptions, such as if you have a pension, but you should seek advice.
You will also need to let the Official Receiver know if you have any changes in your financial situation. The information you provide will be reviewed by the Insolvency Service, who will decide whether you are eligible for a Debt Relief Order. Some charities offer grants for applicants.
The amount of time you can expect to spend in the DRO process will depend on the speed with which you provide your information. Typically, the process takes about ten working days. It is not guaranteed that you will receive your debt relief order within that time.
It is important to bear in mind that DROs affect your credit report, and can be removed if they are proven to be invalid. Credit reference agencies will include your DRO on your credit file for six years. This will prevent you from obtaining credit if the value of the credit exceeds PS500. During this period, you will not be able to buy new goods or services.
Once your DRO has been approved, you can open a basic cash card account with a bank. This can be used to pay for your day-to-day expenses. Similarly, you can use it to pay your wages. But you must tell the bank if you have an overdraft.
How to Apply For a Debt Relief Order was first seen on Help with My Debt