An IVA is an alternative to a DRO but there are certain criteria that must be met (such as debt level, number of creditors and an ability to pay more than £75 each month). So an IVA may not be suitable for many people. If you feel another option such as a DRO is preferable, you will be provided with enough information to make an informed decision. You will then be signposted to a regulated provider who can help you with an alternative option.
A DRO stops your creditors from taking any action against you for 12 months. If your financial position improves during this time, you may be expected to recommence payments of your debts. If you are still not earning sufficient income within a year, these debts will be discharged and your creditors will not be able to claim any more money from you.
Bennett Jones has helped thousands of people solve their debt problems. We understand how stressful and difficult life is when you can’t pay your debts and your bills.
You can trust Bennett Jones to help you if you are struggling to pay your debts.
Would I qualify for a DRO?
It is likely that your DRO application will be approved if:
- You can prove you cannot pay your debts
- You owe no more than £30,000 (in Northern Ireland less than £15,000)
- Your assets are not worth more than £2,000
- You cannot own your own home
- Your monthly disposable income after household expenses is less than £75
- You live in England or Wales.
There are additional criteria you may need to meet, and our team will be able to tell you if you qualify. Debt Relief Orders are for people with relatively low levels of debt who own few assets and have low surplus income. You cannot already be involved in other insolvency procedures such as an IVA or bankruptcy.
Learn more about obtaining a DRO
Bennett Jones can tell you all about the application process, as well as what a DRO entails. We will also refer you to a DRO intermediary who can help you obtain a DRO if this is your chosen solution for your debt problems. Give us a call today and we’ll provide you with useful, practical, confidential information completely free of charge, showing you the best way to get back on your feet. You can also leave a message via our contact form.
Debts covered by a DRO
Debts that can go into a DRO are called ’qualifying debts’. During the DRO period, creditors can’t ask you for payments – if they do, you don’t have to pay them. They include:
- credit cards, overdrafts and loans
- arrears with rent, utility bills, telephone bills, council tax and income tax
- benefits overpayments
- hire purchase or conditional sale agreements
- buy now – pay later agreements
- bills for services like vets or solicitors
- debts you owe to friends and family
- business debts