The citizens Advise Bureau (CAB) report says that 58% of the clients do not have any money to pay of personal debts. The CAB deals with a staggering 7241 new debt problems each day. Increase in involuntary unemployment is only going to worsen the falling financial conditions of the people. This is where the Debt Relief Order (DRO) can be of immense support to anyone.
The Debt Relief Order is an alternative solution to Individual Voluntary Arrangement (IVO) or going bankrupt. The money management process is handled by an expert. He will be supporting you with the general norms and make sure that his client has complied with the DRO.
This program also assists person with minimal assets. With an outlay of just £ 100you get a chance to be debt free in a year. No form of harassment from creditors in relation to personal debt is allowed once the DRO is in place.
To avail the DRO you have to pass some eligibility criteria’s and after it is in place there are restrictions imposed thereafter. To be eligible for the DRO
- The debtor is unable to make payments on outstanding personal debts;
- The debtor’s total unsecured debts must not exceed £15,000;
- The debtor’s total gross assets must not exceed £300;
- The debtor’s disposable income, after household expenses, mustn’t exceed £50 per month;
- The debtor shouldn’t be: an undercharged bankrupt, subject to a Bankruptcy Restriction Order (BRO) or already in an Individual Voluntary Arrangement (IVA).
As long as the DRO is in place these restrictions must be abided by:
- · The debtor must not obtain credit of £500 or more without disclosing that they are subject to a Debt Relief Order;
- · The debtor cannot carry on business in a name different to that when the Debt Relief Order was granted without informing the affected parties;
- · The debtor may not be involved with the management or formation of a limited company;
- · The debtor may not act as a company director without permission from the court;
- · The debtor is only allowed one Debt Relief Order every six years.
Going through the process may be serious headache but that is the best thing you can do when you have already put yourself in such a position.