13:14 30 October 2013
A Debt Relief Order (DRO) simply signifies bankruptcy for people having debt levels below £15,000, low surplus, and no assets. It is not easy to research on debt solutions so we have taken time to compile the most common questions on it, in order to save you the stress.
Before you can apply for a DRO, the following must apply to you:
How long does DROs last?
Upon successful approval of your DRO application, a moratorium will be placed on your unsecured debts preventing lenders from taking any form of action against you. This moratorium normally lasts for 12 months after which you’ll get discharged from your qualifying debts and be no longer accountable for them.
That said, a DRO will affect your credit rating. A note will be placed on your credit file and will remain for six years from the date DRO was approved, thus making it difficult for you to procure more credit in a different place.
What kinds of debts are covered by a DRO?
A DRO includes unsecured debts like payday loans, store cards, credit cards, and bank loans. Debts such as CSA arrears and court fines are not usually included.
Certain restrictions exist after you are approved for DROs and they are:
Is court presence needed for DROs?
You would not be required to attend any court unlike other forms of bankruptcy. Once submission from agents called as Approved Intermediaries, your DRO will be approved by the Insolvency Service.
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