How does a Debt Relief Order work ?
A debt relief order application is a scheme initiated, authorised and regulated by the government. Only approved debt relief agencies can participate in the scheme. Before applying you need to find out if you meet the necessary criteria
Debt Relief Order Criteria
Things which may disqualify you – you owe over £15,000, pension, investments, previous bankruptcy, IVA application. Also, if you have substantial assets such as a house or car etc, you will probably not be able to meet the criteria, unless it is something you need for your work
If you are unsure whether you can apply or not, you should talk all your options and questions over with an approved debt adviser working within the government scheme, or with your local debt charity such as Citizen’s Advice Bureau who will be able to offer free debt advice. Alternatively there is a list of approved debt advice services available on the Insolvency Services website. Just make sure any company you are dealing with is registered and regulated by the Financial Services Authority.
How do you get a DRO application form ?
How long does a debt relief order last and does it affect my credit rating ?
It normally lasts for 1 year during which time all calls from creditors will be halted and existing amount owed will be cleared. This does not apply to student loans to which you must keep up your payments.