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ThorntonRones Insolvency Practitioners. We put the solve into insolvency.
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Q. Is a Debt Relief Order right for me?

Find out what it is, how it works, and see answers to FAQ's below:

Q. What is a Debt Relief Order?

A debt relief order, also known as DRO, is an order granted by the Insolvency Service. It can help if you are struggling or unable to pay your debts and live in England & Wales.

An alternative to bankruptcy if you are on a low income

A debt relief order could be an alternative to bankruptcy, if you are on a very low income and have no more than £300 worth of assets. A DRO is cheaper than bankruptcy and doesn't involve going to court. We should advise that there is no official scheme called a 'debt settlement order'.

Debt relief orders are not suitable for everyone. Before applying for a debt relief order speak to a debt advisor from Debt Advisory Line who will assess your financial situation and recommend a suitable debt plan.

Q. How does a Debt Relief Order work?

A debt relief order will be issued and is administered by an Official Receiver (OR). During a 'Moratorium' period which usually lasts 12 months your creditors can take no enforcement action against you to reclaim debts. Once the order is made the OR will inform all your creditors of this for you. In addition:

Applications for a Debt Relief Order can only be made through a government approved intermediary such as the CAB. Debt Relief Orders are not suitable for everyone. Before applying for a Debt Relief Order speak to a debt advisor from Debt Advisory Line.

Q. What are the advantages of a Debt Relief Order?

Once we have reviewed your finances we may recommend a debt relief order as the best debt solution for you. The Advantages are:

Q.What are the disadvantages of a Debt Relief Order?

The effects of a DRO are similar to bankruptcy:

Q: Will I qualify for a Debt Relief Order?

If you are struggling to repay debt and have a very low income a debt relief order could be the most suitable plan for your debt problems. For people living in England and Wales a DRO can be issued to people who meet certain criteria:

There are some assets which are not considered for inclusion in the value of your assets:

Our advisor will help you take into account all your household income and outgoings. Once you've paid off all your bills, if you've £50 or less remaining you may be able to apply for a DRO, if you meet all other conditions.

When applying for, or during, a DRO, it is important you do not try to hide information or dispose of assets in order to take advantage of the scheme. If you are caught abusing the system, there are civil and criminal penalties

We have experience in other debt plans, so if you do not qualify for a DRO we can still help you get back in control of a debt problem.

Q. What type of debts can I include in a Debt Relief Order?

The following debts can be included in a debt relief order:

There are certain types which cannot be included such as:

Q: What happens after the Debt Relief Order finishes?

If the DRO is satisfied you have cooperated with the order you will be discharged. This as usually after 12 months, at which point all debts listed in your DRO will be written off. You will still be liable to pay any debts outside the order (such as secured debts).

DEBT RELIEF ORDERS

Individual Voluntary
Arrangements (IVAs)

Bankruptcy

Debt Relief Orders

Get help from the Experts NOW!

Trust ThorntonRones to use our skills and expertise and work with you
to tailor a plan that is right for your company. Our advice is always objective and without obligation.

Call us now on 020 8418 9333 for a free consultation. Take a positive step towards changing your life. We're here to help you.