A Debt Relief Order is a formal debt solution available to people who have a small amount of money left to offer towards their debts, have little assets and a relatively small amount of debt. It’s a perfect solution for those who qualify, as it’s relatively low cost and offers legal protection from creditors.
A DRO can only be processed by an Approved Intermediary, and you must get debt advice before you can apply. You can use our Online Debt Advice Tool, speak to one of our expert debt advisors on live chat, or give us a call on 01925 599400, we’re on hand to help every step of the way, in complete confidence.
Am I eligible for a DRO?
You may be eligible for a Debt Relief Order if you owe less than £50,000 in total to your creditors, have £75 or less left over each month after your essential bills and outgoings have been paid, your car (if you have one) is worth less than £4,000 and your other assets don’t surpass a total value of £2000.
How to apply for a DRO?
To apply for a DRO you’ll need to receive debt advice from Angel Advance first. Once we know that you qualify for a DRO, we can provide you a link to an organisation that is able to process your DRO application for you. You’ll need to supply some documents to process your application. The basics are 3 months’ bank statement, 3 months’ proof of income, and evidence of your debts.
What debts are included in a DRO?
Most debts will be, aside from the following:
How long does a DRO take to process?
We don’t process DROs but can refer you to an organisation that does. They aim to process your application within 2 weeks of your application provided you can supply all the evidence they need.
How long does a DRO last?
A Debt Relief Order lasts for 12 months, and after this time you are released, and your debts written off.
Will a DRO stop bailiffs?
Yes, in most cases bailiff action is prevented as part of your DRO. It’s important to note that if you have a controlled goods arrangement in place already with a bailiff, you’ll likely need to continue paying them to prevent them from taking your goods.
Will a DRO impact my credit score?
Yes, your credit file will be updated to show that you’ve entered a DRO and the marker will remain there for 6 years; this can make taking out credit in the future difficult.
If you’ve already been missing payments to your debts or have any CCJs, your credit file will have been impacted already.
If you’d like more information on a DRO and how we can help, call us today on 01925 599400 to speak to an experienced debt advisor, visit our Live Chat service, or email us at info@angeladvance.co.uk. We also have another article here, which covers some other details.
