A Debt Relief Order (DRO) is a way to deal with your debts if you owe up £50,000 and don’t own your home. It’s designed to help people who are struggling with debt by freezing repayments and interest for a period of time, usually 12 months. After this period, if your financial situation hasn’t improved, the debts included in the DRO are written off.
Understanding Debt Relief Orders (DRO)
Breathing Space
A DRO provides a 12-month period where your debt repayments are frozen. This gives you much-needed breathing space to focus on essential living expenses without the constant pressure of debt payments.
Affordable Option
There is no court application fee for a DRO, other than advisors costs. This one-time fee can often be paid in instalments, making it an affordable option compared to other debt solutions.
Protection from Creditors
Once a DRO is in place, your creditors are not allowed to take any action to recover the debts included in the order. This means no more worrying about threatening letters or calls from creditors.
Debt Write-Off After 12 Months
A Debt Relief Order is a fast arrangement. If your financial situation hasn’t improved after the 12-month period, the debts included in the DRO are written off in full. This can provide a fresh start and a chance to rebuild your finances.
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