There may be a point where you realise that you can’t pay off your debts in the way you were hoping for. If this happens to you then you may want to consider applying for a Debt Relief Order (DRO). A DRO has to be thought of not as en easy way out of debt but a means of making the burden of repayment more bearable. There are some criteria in order to be applicable for a DRO and we’ve listed some of these below.
If you’ve exhausted all avenues trying to pay off your debts and you can prove as such, you may be eligible for a DRO.
If, after all your deductibles are taken away, you have £50 or less left a month as disposable income then you may qualify.
You’ll only be able to get a DRO if you’ve living in England or Wales. A famous example of this was when a member of Westlife went bankrupt in Ireland and moved to England where bankruptcy laws are much more lax.
No Second Chances
You’re only meant to get a DRO once but the law states that you can apply for another after six years of getting one.
No Big Debts
If you’re debts amount to over £15 000 then you simple won’t qualify for a DRO. This total doesn’t include any outstanding debts you don’t know about and some debts aren’t under this scope either.
We hope you take these points in to account and realise that a DRO isn’t a quick fix out of debt but another avenue for help in the long term.