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What is a Debt Relief Order? Know How to Apply for a DRO

What is DRO Debt Relief Order UK?

what is dro ? The Debt Relief Order is one of the safest ways that help you to deal with your debts when you owe less than the amount of £20,000. If you have a few assets and the debt is comparatively low, then with the help of apply for debt relief order online application, you can write off the debts easily.

If you get qualified, then contact the expert DRO stepchange team to apply for dro online and get insolvency service from them. When you are going to rent a home and have little spare income, then without any doubt, the step change debt relief order is the best option to deal with.

Time Period of Debt Relief Order:

Debt Relief Order UK mainly lasts for twelve to twenty-four months. It depends upon the source of your income and the amount of debt you owe. Contact a stepchange DRO expert and they will help you to choose the correct dro application form plan for you.

Unless you fail to pay the amount in the end, your creditors will not give you any pressure within twelve months.

At the same time, you have to maintain your finances and have to make payments in regular months. It will help you to avert from another debt reduction plan.

Restrictions Imposed on Debt Relief Order:

apply for debt relief order online through step change DRO helps to avail specific profits but needs to be ready to accept a few restrictions as well. Like, if you live in Scotland, then you aren’t eligible to apply for DRO.

Unfortunately, if you get bankrupt or suffer from any sort of financial crisis, then applying for DRO is the right decision for you. 

How to Apply for Debt Relief Order?

If you have already decided to how to apply for a dro online, then at first, you have to get in touch with a DRO stepchange adviser and tell them to make your application to the Insolvency service.

Step 1: Find a DRO Adviser

Through an “Approved intermediary”, you can contact a Debt Relief Order step change scotland specialist. They will give you permission to complete all the rules and regulations. They also give advice regarding DROs. After that, they will check if you are qualified to apply for DRO or not.

Step 2: Work with the DRO Experts

The experts of the step change debt relief order UK will tell you if you are submit dro application form or not. As well as they will tell you which DRO stepchange plan is most suitable for you. If you proceed further, then you have to fill up the DRO form and provide the correct information in the application form.

But in case if it shows you are not eligible for applying DRO, then you will definitely get back the payment fee.

Then the application will be sent at the Insolvency Service by an official receiver. But if the recipient finds any dishonesty or any fraud information, then your DRO may last up to fifteen years as well. Sometimes, you might be taken to court in case of dishonesty.

Step 3: Make the Payment

For applying for a dro application form, you need to pay £90 in cash or via the Payzone outlet. You can also pay this amount in installments if you are not willing to pay the lump sum at a time. But remember that you will not get back your money once your application is turned down.

Step 4: Know the Officer’s Decision

After completing the payment, the official receiver will make a decision that is right for you. You need to co-operate with the receiver by answering all the questions asked to you and also provide any further information to complete the DRO stepchange process.

How long DRO Takes to Process?

Once you have provided all the correct information and fill up the application form it goes to the DRO Approved Intermediary for the approval. Then it will be sent to the Insolvency Service.

Complete the payment and it will take almost ten to fifteen days depending on the basis of your application. 

Advantages of DRO:

There are multiple advantages if you apply for debt relief order. Let’s take a look at the advantages that are mentioned below.

  • A DRO relieves you from anxiety and stress of calls and notifications.
  • Your creditors will be liable to the agreement.
  • Creditors can not take any further action without taking your permission.
  • You don’t need to make the payment on a monthly basis.
  • A DRO is an alternative to low-cost bankruptcy.
  • You don’t have to appear in court as the DRO is a formal debt solution.
  • After applying for a DRO, all the charges and interests regarding your debts that are covered by DRO will be frozen for a certain duration.
  • You do not need to go to the court to how to apply for a DRO.

Few Risks Involved with DROs:

In spite of the benefits, there are few advantages to what some people are not willing to choose DRO.

  • If you forgot to pay DRO, then no provision will be added to your debt.
  • If you have your own home, then you are not eligible to apply for DRO.
  • You can not write off all types of debts.
  • To apply for DRO, you must have an income of less than £50 per month.
  • If you are living only in England, Northern Ireland or Wales, then you will be eligible for DRO.
  • In the case of dishonesty, you might encounter “debt relief restrictions order” and must appear in court.
  • If you entered any false information, then the official receiver can take legal steps against you.

What Debts are Covered in debt relief order?

Most of the debts are covered in the step change debt relief order such as council tax, credit card, debit card, household utility bills, etc. The debts that are not included in your DRO are known as Excluded Debts. 

Some Excluded Debts are listed below.

  1. Child maintenance
  2. Criminal files
  3. Loans from DWP Social Fund like budgeting loans
  4. TV license arrears
  5. Fraudulent debts

Who is Eligible for Applying for DRO? Eligibility Criteria for Applying for DRO

  • After paying the household bills, if you have £50 or less additional income every month, then how to apply for a dro online.
  • In case your debts are £20,000 or less, then you can apply for DRO.
  • Your total asset is worth £1000 or less? Congratulations you are eligible for the apply for debt relief order online.
  • If you already had a DRO in the past six years, then consult with the DRO advisor. In that case, you might not be able to apply for DRO.

Frequently Asked Question

  • What kinds of employment will be influenced by a Debt Relief Order (DRO)?

Along with the directorships, a apply for debt relief order online might influence your job if you are in a certain sort of profession for instance if you are an accountant, a solicitor, or insolvency practitioner. Well, you need to talk to your stepchange dro contact number professional body or HR department to determine if your job will be influenced. And in case you are planning to opt for a job role in security or anything related to finance, then your apply for debt relief order online might pose an impact on your employment prospects.

  • Will a Debt Relief Order (DRO) pose an impact on my tenancy?

Well, a Debt Relief Order won’t influence an ongoing tenancy however you might find some difficulty or surprising problems while renewing or getting a new tenancy whilst your Debt Relief Order is in effect.

  • What can happen to my DRO (Debt Relief Order) if my financial condition improves?

So, if your financial condition improves during the course of the apply for debt relief order online application, for instance, your earning enhances or you get a lump sum of money, you will be required to let the Insolvency Service aware of all these things so that they can assess your current financial condition & determine whether it will influence your debt relief order online application. Always bear in mind that there could be severe consequences if you fail to share this information with them that your situation has improved.

  • What will happen when i’ve joint debts on a Debt Relief Order (DRO)?

The whole balance of any joint debts would be incorporated in your application & will count towards the 30,000 pounds limit but, the joint party is not protected! Therefore, they will remain responsible for the full balance of any joint debts.

  • Will a DRO stop bailiffs?

A debt relief order online application protects you from steps by most lenders listed in your DRO. But, certain creditors can still take steps against you, for instance for the rent arrears or a hire purchase debt. So, if you have come to a monthly payment arrangement with a bailiff, like a controlled goods agreement, then your Relief Order won’t prevent them from taking any legal step or selling your goods. Therefore, if you desire to keep all these belongings, then you’ll be required to keep making the monthly payments you have agreed to.

  • Will a DRO clear my rent arrears?

Well, rent arrears are actually the ‘qualifying debt’ that means they’ll be incorporated within your Debt Relief Order & no monthly payments will be made towards the debt. Henceforth, your landlord can not take any kind of action to recover the arrears, however, they can even remove you from the property. And you couldn’t have an allowance within your budget to pay back the arrears but, you can select to use your disposable earnings (that will be less than 75 pounds per month) towards the rent arrears.

  • What happens at the end of the DRO?

During the 1 year that you are subject to a Debt Relief Order, you’re completely secured from further legal action relating to the debts. When this period completes, you’ll be discharged as well as free from all the responsibility for those debts.

  • Can a DRO)l stop a CCJ?

Well, if you do not have a CCJ, then your creditor won’t be able to go towards a CCJ after the Debt Relief Order application form gets approved. And in case, if you’ve a CCJ, then a Debts Relief Order will stop the creditor from taking any further steps including legal steps against you for collecting the debt, like appointing bailiffs.

  • Can I go on holiday when I’ve DRO?

When your Debt Relief Orders gets approved you do not need to pay anything directly towards your lender, therefore, you can utilise whatever money you’ve to save for your holiday trip but, it would only be a very small amount as you’ve a Debts Relief Order since you must have less than 75 pounds leftover every month.

  • Can I keep my vehicle on a DRO?

Of course, you can keep your vehicle as long as this is worth less than 1000 pounds, has been particularly adapted for a disability, or is subject to the Motability scheme.

  • Does a DRO cover all my debts?

Well, the answer is yes! A citizens advice debts relief orders would incorporate all qualifying debts. When your stepchange Debt Relief Orders gets approved you can not add any further debts to it! Therefore, if you miss a single payment by mistake, you will remain liable for paying it. And in case, if the debt takes you more than the 30,000 pounds threshold, your Debt Relief Order might be revoked.

Related Articles: History of Step Change Debt Charity

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