Advantages and Disadvantages of a DRO

Now you’re ready to get set, DRO

If you’ve ticked every box so far in our compulsory eligibility process, you’re a step closer to a Debt Relief Order. Congratulations. Although the process has only just started, it’s bound to give you that peace of mind you were looking for. So here’s what to do now:

  • Contact one of our friendly, dedicated Find a Debt Expert advisors on 0161 694 2650.
  • They’ll help you through every stage of the debt relief order application process.
  • It’s vital that you triple-check with an advisor that the information on your DRO application is correct.
  • The £90 fee is non-refundable and you can only apply once every six years – it may seem a lot right now (especially as you’re trying to free yourself from debt, not add to it) so it’s crucial that you qualify and that the information on your DRO application is correct.
  • With Find a Debt Expert checking your application before submitting it, it’s more likely that the Insolvency Service will accept it and agree to the DRO.

DRO advantages

  • You don’t pay anything towards your debts for 12 months – they'll all be written off if your circumstances don’t improve
  • Your debts will be written off at the end of the DRO term, which is typically 12 months
  • A debt relief order can be a low-cost alternative to bankruptcy
  • Your creditors can't pursue you for your debts during the 12 month period
  • Outstanding personal tax liabilities can be included in a DRO
  • The fee to enter into a DRO is relatively low at £90 (In Northern Ireland this should be paid in monthly installments of up to six months)
  • You will not be required to make any payment into the DRO beyond the initial £90 fee
  • If your assets are valued at £300 and your car is valued at less than £1000, they will be protected, and you won’t have to sell them
  • Although a DRO is a formal debt solution, you don't need to appear in court
  • If you currently have any recovery or legal action this may not be suspended or withdrawn

DRO disadvantages

  • Homeowners cannot apply
  • Even if your home is in negative equity you cannot apply
  • The loan is not available in Scotland
  • Only available if you owe less than £20,000
  • You'll need to pay the Insolvency Service a one-off, non-refundable fee of £90
  • You cannot apply for a DRO if you have been in another DRO in the last six years
  • A DRO will appear on a public register and will affect your credit report negatively
  • Your rent and other household bills along with debts will still need to be paid
  • Court fines, student loans and child maintenance/support are not covered by a DRO
  • You cannot take out any money over £500 without making the lender aware – it is a criminal offence if you do not disclose this

If you’re on a low income with few assets and don’t own your own home then a DRO is definitely the way to go. But don’t make your mind up just yet – along with a certified Find a Debt Expert advisor, let’s work on it out together. We’ll make sure you’re on the debt plan that best suits your needs. You needn’t worry with Find a Debt Expert.

Contact Find a Debt Expert today on 0161 694 2650 or use our Debt Calculator.

Find a Debt Expert is a trading style of Milton & Stirling Ltd, Company Number SC587851 – Solutions Scotland, 78a Stanley Street, Glasgow, G41 1JH. DPA number ZA431921

Milton & Stirling Ltd are an Appointed Representative of MichaelAlan Ltd who are authorised & regulated by the Financial Conduct Authority, FRN 690939.

As part of our free service, we’ll review your financial situation, explain the available options and recommend a debt solution which is suitable for you. The risks of all suitable solutions will be explained clearly and if you decide to go ahead with a debt solution we will refer you to one of our trusted providers who specialise in the management of that debt solution. We’ll be paid for introducing you or for the preparatory work we do, depending on your debt solution fees may be payable if ongoing services are provided. Read about fees and key information in our terms & conditions. To find out more about managing your money and getting free debt advice, visit Money Advice Service , an independent service set up to help people manage their money.

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For complaints see our Complaints Policy

For independent advice on how to deal with creditors with regards to Insolvency Services see https://www.gov.uk/government/organisations/insolvency-service