{"id":27009,"date":"2019-12-18T10:03:39","date_gmt":"2019-12-18T10:03:39","guid":{"rendered":"https:\/\/mmil.wpengine.com\/?p=27009"},"modified":"2019-12-18T10:03:39","modified_gmt":"2019-12-18T10:03:39","slug":"what-is-a-debt-relief-order-are-you-eligible","status":"publish","type":"post","link":"https:\/\/makemoneyinlife.com\/what-is-a-debt-relief-order-are-you-eligible","title":{"rendered":"What is a Debt Relief Order &#038; Are You Eligible?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you\u2019re currently experiencing financial difficulties and are unsure of what steps, you may want to consider a <\/span><a href=\"https:\/\/nationaldebtadvice.org.uk\/\"><span style=\"font-weight: 400;\">Debt Relief Order<\/span><\/a><span style=\"font-weight: 400;\">. More commonly known as a DRO, a Debt Relief Order is a great alternative to bankruptcy in certain situations \u2013 do bear in mind though, there are certain criteria you will need to meet in order to be eligible and a DRO is not a form of debt consolidation. So, what exactly is a DRO, and how do you know if you\u2019re eligible?<\/span><\/p>\n<h2><b>What is a Debt Relief Order?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In short, a DRO is a relatively new concept (in the grand scheme of things) that offers a great alternative to bankruptcy. A new form of insolvency measure, they were introduced back in 2007 and you can now apply for one for a flat fee of \u00a390. The main benefit that comes from this form of debt management is that your debts will be frozen for a period of 12 months and if your financial circumstances remain the same at the end of this period, your debts will be written off. <\/span><\/p>\n<h2><b>Are You Eligible for a Debt Relief Order?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If you\u2019re unsure whether or not you\u2019re eligible, don\u2019t worry, we can help you with this. Firstly, you will only be able to apply if you are currently unable to pay your debts. This may seem self-explanatory, however it is really important, as you won\u2019t even be considered for a DRO if you have more than \u00a350 left over per month \u2013 after you\u2019ve paid all of your usual household expenses. Also, if you own a car that is worth over \u00a31000 then, again, you won\u2019t be eligible. Other reasons that may prevent you from being granted a DRO are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You own your own home<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You have been bankrupt or had an IVA within the last six years<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You have savings or assets worth over \u00a31000<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your debts are more than \u00a320,000<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you meet the above criteria, then you will be able to apply \u2013 if you don\u2019t, you may want to consider other options, such as bankruptcy, debt consolidation, a debt arrangement scheme or IVA debt solutions. <\/span><\/p>\n<h2><b>What are the Implications?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">You may be thinking that all this sounds too good to be true \u2013 but you should be aware, there are some implications that go along with this form of debt help. For example, the DRO will stay on your personal credit report for a period of 6 years, which will severely affect your chances of getting credit during this period and potentially beyond it. In addition to this, you may struggle with things such as opening a new bank account or even fining a new home \u2013 as most private landlords will not consider potential tenants with any kid of insolvency of their credit file.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0This being said, it\u2019s really important that you weigh up all the options available to you before applying for a Debt Relief Order, as there may be other debt help solutions that are more tailored to your personal circumstances. <\/span><\/p>\n<h2><b>How Do You Apply?<\/p>\n<p><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">So, you\u2019ve weighed up all your options and have come to the conclusion that a DRO is your best option \u2013 so how do you apply? The first thing to consider is that you won\u2019t be able to apply directly \u2013 you\u2019ll need to go through a specialist adviser, which you can find at your local citizens\u2019 advice bureau. When you have selected one, they will walk you through the whole process and help you to draw up your application \u2013 including things such as working out your monthly incomings and outgoings, as well as accurately valuing your assets. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, as mentioned previously, there is a flat fee of \u00a390 that you\u2019ll need to pay in order to apply. Don\u2019t let this put you off though \u2013 as this can be paid in installments over a 6-month period &#8211; but do bear in mind, it won\u2019t be refunded if you\u2019re application is unsuccessful, which is why it\u2019s really important to make sure you meet all the criteria. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">One more vitally important thing to remember is that if your circumstances change during your DRO, you MUST inform the official receiver. For example, your income may increase, or you may receive additional money or valuables in a will. Failure to inform the official receiver could lead to your DRO being revoked, or you may even be hit with a hefty fine! So it\u2019s vitally important that you remember all of the above when applying.<\/span><\/p>\n<p><a href=\"https:\/\/unsplash.com\/photos\/mcLpPD36-2k\">image source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re currently experiencing financial difficulties and are unsure of what steps, you may want to consider a Debt Relief Order. More commonly known as a DRO, a Debt Relief Order is a great alternative to bankruptcy in certain situations \u2013 do bear in mind though, there are certain criteria you will need to meet<\/p>\n","protected":false},"author":1923,"featured_media":-1,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1944,64],"tags":[],"aioseo_notices":[],"modified_by":"James W","_links":{"self":[{"href":"https:\/\/makemoneyinlife.com\/wp-json\/wp\/v2\/posts\/27009"}],"collection":[{"href":"https:\/\/makemoneyinlife.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/makemoneyinlife.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/makemoneyinlife.com\/wp-json\/wp\/v2\/users\/1923"}],"replies":[{"embeddable":true,"href":"https:\/\/makemoneyinlife.com\/wp-json\/wp\/v2\/comments?post=27009"}],"version-history":[{"count":0,"href":"https:\/\/makemoneyinlife.com\/wp-json\/wp\/v2\/posts\/27009\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/makemoneyinlife.com\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/makemoneyinlife.com\/wp-json\/wp\/v2\/media?parent=27009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/makemoneyinlife.com\/wp-json\/wp\/v2\/categories?post=27009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/makemoneyinlife.com\/wp-json\/wp\/v2\/tags?post=27009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}