Debt Relief Order
A Debt Relief Order is designed to be a cheaper, simpler and quicker alternative to bankruptcy; it is suitable for people that have certain amount of debt, minimal disposable income and assets of minimal value.
Debt Relief Order Advantages
• Most debts can be included with the DRO, including rent arrears and council tax.
• Creditors can take no further action against the debtor once the DRO has been made.
• After 12 months all the debts listed in the order will be written off, but any that were not included will still be able to pursue the debtor.
Debt Relief Order Disadvantages
• If the debtor is a homeowner, they will not be eligible as this will exceed the asset limitation.
• The debtor’s credit rating will be affected.
• The debtor will only be eligible if their debts are less than £30,000.00 and their disposable income is less than £75.00
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