Apply online and become debt free - Ashley Park: Debt Relief Orders (DRO)
If you're on a low income debt solutions such as a DMP, an IVA and even Bankruptcy may not be suitable for your circumstances. In April 2009 a new debt solution, called a Debt Relief Order became available in the UK.
Who will benefit from a Debt Relief Order?
Debt Relief Orders are aimed at people living in England and Wales and can provide debt relief for people if:
- Your debts can't be paid
- Your total unsecured debts must not exceed £15,000
- You have no more than £300 of net assets
- Your disposable income, after household expenses, must not exceed £50 a month.
- You've not previously had a Debt Relief Order within the last 6 years.
- You're not involved in another formal insolvency procedure when applying for a Debt Relief Order.
To enter into a Debt Relief Order (DRO) you must pay £90 to the Insolvency Service, which is much less than the £495 needed to petition one's own Bankruptcy. The cost of a DRO is kept low as applications are made online (with the assistance of an approved debt advisor to act as an intermediary).
What are the effects of a debt relief order?
The effects of debt relief orders are similar to that of Bankruptcy. A DRO will remain on public record for 15 months, and like all adverse credit information will stay on your credit record for 6 years. Under a debt relief order you will be subject to the following restrictions:
- You may not obtain credit of £500 or more, either alone or jointly with someone else, without telling the lender you are within a DRO.
- You cannot trade (directly or indirectly) in a name that is different from the name under which you were granted a DRO, without telling all those with whom you do business, the name under which you were granted a DRO.
- You may not be involved (directly or indirectly) with the promotion, management or formation of a limited company, and may not act as a company director, without the court's permission.
- You will only be able to obtain a DRO once every six years.
You may also be subject to a Debt Relief Restrictions Order, similar to a Bankruptcy restriction order. This can extend the period of restriction for up to 15 years for debtors who are deemed dishonest or culpable to the extent of their financial difficulties. An example of this hiding assets or continuing to borrow knowing you have no chance of making the repayments. Repaying debt over a longer period may increase the total amount to be repaid. Your ability to obtain credit will be affected in the short term and might be affected in the medium to long term
To enquire phone 0800 043 3535 or email enquires@ashleypark.co.uk.