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If your debts are becoming unmanageable, a Debt Relief Order (DRO) may be your best option. Get in touch with our advisors today to find out how we can help you.
Customers can get free debt counselling, debt adjusting and providing of credit information services from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. For more information from the Money Advice Service click here www.moneyadviceservice.org.uk
A DRO is a form of bankruptcy if you have relatively low income and few assets .
If you live in England, Wales of Northern Ireland you may be eligible If you owe less than £20,000, have assets worth less than £1,000 and a car worth no more than £1,000. You are not eligible if you own your own home.
A DRO will have an impact on your credit rating and may affect certain types of employment.
If you obtained any of these by fraud, you will still have to pay them when the DRO has ended.
If you’re behind on your rent, your landlord can still take action to get their property back, even if the rent arrears are included in your DRO, which means you may have to continue paying these after a DRO is made.
These debts mentioned above can not be included in a DRO. A DRO will last for around one year and you will not be required to make payments towards most types of debt included in your DRO. The businesses that you owe money to will not be able to force you to pay off the debt.
Individual Voluntary Arrangements (IVA’s) were introduced by the Government in the 1986 Insolvency Act as an alternative to bankruptcy. They were put in place to help anyone in serious debt finding it difficult to make their monthly payments. If you live in Scotland the equivalent solution is a Trust Deed