Get out of Debt with a Debt Relief Order

There was a time when I was in so much debt that it was depressing. I simply couldn’t afford to pay the debts, so I contacted a debt advice line who told me about a debt relief order (DRO). I didn’t own my own home. My car was only worth about £99, and a lot of the debts were outside of council tax and rent, so I met the criteria. If the situation doesn’t improve within 12 months (mine didn’t) the total debt is waived after 12 months.

There is no guarantee that the DRO will go through, as it cost £90 at the time, but it’s a cheaper way of bankruptcy. It remained on my credit file for six years, but for much of society who are experiencing debt issues due to this manufactured cost of living crisis through the plandemic, blaming Russia for everything, and whatever else these rich globalists can manufacturer through the lying mainstream media, a debt relief order could be your cheapest solution.

It beggars belief why people are left to struggle when even Dispatches’ show Broke: Britain’s Debt Emergency: Dispatches. is covering the debt issue and I’ve not even heard of the words ‘debt relief order’ to these struggling families. Instead, they promote the IVA’s, which is a monthly amount that is paid to the debtors, but this is long term and may not stop the creditors from harassment and phone calls.

Full Legal Information on Debt Relief Orders from the Gov website

Debt Relief Orders

Debt Relief Orders (DROs) are one way to deal with your debts if you owe less than £30,000, do not have much spare income and do not own your home.

If you get one:

your creditors cannot recover their money without the court’s permission
you’re usually freed (‘discharged’) from your debts after 12 months

Get a Debt Relief Order

You get a DRO from the official receiver, an officer of the bankruptcy court, but you must apply through an authorised debt adviser. They’ll help you fill in the paperwork.

There’s a list of organisations that can help you find an authorised debt adviser in the guide to DROs.

MoneyHelper has information about where to get free debt advice.

Costs

The official receiver’s fee is £90. Your debt adviser can tell you how and when to pay it. In some cases a charity may be able to help you with the cost – ask your debt adviser.

Eligibility

You’re generally eligible if you meet all of these criteria:

you owe less than £30,000
you’ve less than £75 a month spare income
you’ve less than £2,000 worth of assets
you do not own a vehicle worth £2,000 or more
you’ve lived or worked in England and Wales within the last 3 years
you have not applied for a DRO within the last 6 years

Restrictions

You must follow rules called ‘restrictions’ if you get a DRO.

This means you cannot:

borrow more than £500 without telling the lender about your DRO
act as the director of a company
create, manage or promote a company without the court’s permission
manage a business without telling those you do business with about your DRO

If you want to open a bank account, you may also have to tell the bank or building society about your DRO.

Check the Individual Insolvency Register to see when the restrictions end.

The restrictions usually last 12 months. They can be extended if careless or dishonest behaviour caused your debt problem. For example, you lied to get credit.

The official receiver will tell you if they should be extended. To extend them, you’ll be asked to agree to a ‘Debt Relief Restrictions Undertaking’. The court can issue a ‘Debt Relief Restrictions Order’ if you do not agree.