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What is a Debt Relief Order in UK (DRO)?

A debt relief order is a quicker, simplified approach to deal with all the debts if you've very low debt & only have a few properties and assets. And when you qualify for the Debt Relief Order, the DRO specialist team will help you to get the best Insolvency Service at convenience. Debt relief orders aren't accessible if you stay in Scotland.

Well, DROs can be available in England, Wales and Northern Ireland and surrounding places in the UK.

When a debtor opts for the DRO, it freezes all the debt relief  order in uk i repayments as well as interest for at least 1 year. And, if your financial condition has not improved at the end of this time, then all of the debts will be written off. Always get in touch with an approved organization, since they can help you apply for the DRO if you are eligible.

But, this is also true that DRO will always be shown on a public register &  will  potentially pose an impact on the credit report negatively.

Benefits of a Debt Relief Order

●     A DRO can be a budget-friendly alternative to bankruptcy

●     Debtors do not pay anything towards their debts for 1 year. Thereafter, they will be automatically written off.

●     The lenders can not pursue you for your debts during the 1 year period

●     Although a Debt Relief Order is a formal  solution, debtor do not need to appear in court

Risks of a Debt Relief Order

●     A Debt Relief Order can be only available if a debtor owe less than £30,000 and stay in Wales, England, or Northern Ireland

●     People will be required to pay the Insolvency Service a one go, non-refundable charge of £90. If people qualify, the professional team will help you apply

●     People cannot apply if they are a homeowner

●     A Debt Relief Order UK will appear on a public register & will pose impact on the your credit score negatively

How to apply for debt relief order

Here are the steps that need to be followed in order to apply for a debt relief order! So without much delay, let's check out the process: 

●     The very first thing is to check if you qualify for a debt relief order, & if it can be the best solution for you.

●     If a debt relief order is the most suitable solution to your debt oriented issue, the debt relief order provider will send you the required forms & help you to apply. People will require to finish all these forms & then return them to the professional DRO team

●     The professional DRO team will prepare your application. And before submitting the form, there can be a £90 charge that needs to be paid to the Insolvency Service in full or, if you live in Wales or England you can pay in installments.

And when all the changes have been paid, the professionals can submit your application.

So, when  you have provided the relevant data to the Debt Relief Order approved intermediary, & paid the £90 charge, the intermediary will submit the Debt Relief Order application to the Insolvency Service. And they will make a decision on the application within 1 to 2 weeks.

Well, the majority of the debts are involved in a Debt Relief Order. This incorporates council tax, household utility bills, as well as consumer debt like store cards, credit cards. Moreover, certain debts are named as ‘excluded debts’. And it means they aren't involved in the Debt Relief Order. And the most popular excluded debts are:

 

●     Child maintenance

●     Criminal fines

●     Loans from the DWP Social Fund, such as budgeting loans

●     TV license arrears

●     Debts that have been taken out fraudulently, including benefit overpayments that have happened as a result of fraud

So, it is pretty essential that you are completely aware about how to apply for a debt relief order & how the DRO can affect your lifestyle. For further information, keep tuned with us! On the other hand, you can also give us a ring or send us a mail at our official mail ID!