11:07 30 September 2013
What are the mechanics of a DRO?
Upon approval of your DRO, your debts are frozen for 12 months. This means your creditors cannot force you to make payments during this time. Likewise, after the 12 month period and your situation didn’t improve, your debts are then written off. Regardless whether additional charges such as interests and penalties are added, your debts are written off unless there is a cancellation of your DRO during that period.
Who can be eligible for a DRO?
You may be eligible to apply for a DRO if you:
What are the restrictions when you applied for a DRO?
If your DRO is approved, you will not be able to:
What are the other forms of debts which cannot be included in a DRO?
Student loans, magistrates' fines, child support arrears, any claims for damage or personal injury that have been against the person applying for a DRO and any debts incurred under the Proceeds of Crime Act cannot be included in a DRO.
What is the effect of DRO on your credit rating?
A DRO will be listed in your credit file for 6 years and you will not be allowed to take out any additional credit during this time.
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