Debt Relief Order | Know how to Apply for a Debt Relief Order in UK

The Debt Relief Order is one of the safest ways that help you to deal with your debts when you owe less than the amount of £20,000. If you have a few assets and the debt is comparatively low, then with the help of apply for debt relief order online application, you can write off the debts easily.

A debt order or DRO in the UK is the new form of the insolvency measure. When you have a lower level of debt, then a debt relief order helps you to write off the debt. Hence, the DRO provides you a reasonable amount of time to repay. 

But you should know that it not only has multiple benefits but also there are some risks. Fees are also associated with a debt relief order or DRO. Before how to apply for a dro online, make sure to check whether you are eligible for it or not, how does it work and how long does a debt relief order take to process. Here is a detailed overview of a debt relief order UK. 

What is DRO Debt Relief Order UK?

What is a debt relief order? If you get qualified, then contact the expert DRO stepchange team to apply for dro online and get insolvency service from them. When you are going to rent a home and have little spare income, then without any doubt, the step change debt relief order is the best option to deal with.

Time Period of Debt Relief Order:

Debt Relief Order UK mainly lasts for twelve to twenty-four months. It depends upon the source of your income and the amount of debt you owe. Contact a stepchange DRO expert and they will help you to choose the correct dro application form plan for you.

Unless you fail to pay the amount in the end, your creditors will not give you any pressure within twelve months.

At the same time, you have to maintain your finances and have to make payments in regular months. It will help you to avert from another debt reduction plan.

Who is Eligible for Applying for DRO? Eligibility Criteria for Applying for DRO

  • After paying the household bills, if you have £50 or less additional income every month, then how to apply for a dro online.
  • In case your debts are £20,000 or less, then you can apply for DRO.
  • Your total asset is worth £1000 or less? Congratulations you are eligible for the apply for debt relief order online.
  • If you already had a DRO in the past six years, then consult with the DRO advisor. In that case, you might not be able to apply for DRO.

What are the Benefits of a DRO and How to apply for a dro ?

In a debt relief order or a DRO, you will find many attractive benefits and those are mentioned below. 

  • If you are in bankruptcy, then the DRO will be very helpful for you as you can find it a low-cost alternative to it. 
  • Because of DRO, you don’t need to pay any amount towards your debts for the 12 months and then it will be written off. 
  • Your creditors are unable to force you for the debts during that 12 month period. 
  • You should also note that a DRO is one type of formal solution to debt. During the DRO, you are not required to appear in a court. 
  • You can not face any court hearing and will be able to relieve the stress and anxiety. 
  • After a year you will be able to make a fresh start and you can include most of the debts in the DRO. It includes your priority debts such as Council Tax, Energy Debt, and many others. 
  • Without the court’s permission, DRO creditors can not take further action against you. 
  • When you have a DRO, you do not have to pay monthly. 

Apply for a Debt Relief Order

Cons of Debt Relief Order:

There are quite a few disadvantages to the debt relief order as well. To know them, have a look below: 

  • There are many debts that can not be written off. 
  • If you have your own home, then you can not apply for it as this counted as an asset. 
  • Sometimes, you might forget about the debt and you can not add it in later. 
  • All the information about your DRO to the Individual Insolvency Register is found here and the DRO will also record your credit reference file. 
  • If you are dishonest or make any unfit conduct, then you will have to face ‘debt relief restrictions order’. 
  • The official receiver can make a criminal action against you as they have that authority to do so. 

What are the Criteria to Eligible for a DRO?

apply for debt relief order online through step change DRO helps to avail specific profits but needs to be ready to accept a few restrictions as well. Like, if you live in Scotland, then you aren’t eligible to apply for DRO.

Unfortunately, if you get bankrupt or suffer from any sort of financial crisis, then applying for DRO is the right decision for you.

There are certain criteria to make yourself eligible for a DRO. Before applying for it, you need to meet those criteria which are: 

  • If you have less than £20,000, then you can apply for a DRO. But make sure that you live in England, Wales or Northern Ireland before applying for it. 
  • It can be possible that you have done business in one of those countries in the last three years. Because of that, you are eligible for a debt relief order. 
  • When you get a DRO, then you will have to pay the Insolvency Service which costs £90. 
  • Before applying for it, make sure that you don’t have a residence. 
  • DRO can affect your credit report negatively as it appears on a public register. 
  • After paying all of your living costs, if you have less than £50, then you are eligible to get it. 
  • In case you have savings over £1,000, then you are not applicable for a DRO. 

Below discussed are some of the situations when you can’t apply for a Debt relief Order:

  • Many times, your creditors try to make you bankrupt. At that time, if the hearing has not taken place, then you are not able to get a DRO. At that time, you might find that your creditors are agreed. That provides you the confidence to apply for it. 
  • When you get a Bankruptcy Restrictions Order, then you can’t apply for it. 
  • It can be possible that you are petitioned for bankruptcy but it is not sanctioned and hence you should not apply for the Debt Relief Order. So, if the judge orders you for debt relief, only then you are capable of getting it. 
  • Make sure that you are not bankrupt currently and you don’t have an IVA already. 
  • You might have a Debt Relief Order or a Debt Relief Restriction Order. Because of that, you are unable to use the DRO. 

How to Apply for Debt Relief Order?

If you have already decided to how to apply for a dro online, then at first, you have to get in touch with a DRO stepchange adviser and tell them to make your application to the Insolvency service.

Step 1: Find a DRO Adviser

Through an “Approved intermediary”, you can contact a Debt Relief Order step change scotland specialist. They will give you permission to complete all the rules and regulations. They also give advice regarding DROs. After that, they will check if you are qualified to apply for DRO or not.

Step 2: Work with the DRO Experts

The experts of the step change debt relief order UK will tell you if you are submit dro application form or not. As well as they will tell you which DRO stepchange plan is most suitable for you. If you proceed further, then you have to fill up the DRO form and provide the correct information in the application form.

But in case if it shows you are not eligible for applying DRO, then you will definitely get back the payment fee.

Then the application will be sent at the Insolvency Service by an official receiver. But if the recipient finds any dishonesty or any fraud information, then your DRO may last up to fifteen years as well. Sometimes, you might be taken to court in case of dishonesty.

Step 3: Make the Payment

For applying for a dro application form, you need to pay £90 in cash or via the Payzone outlet. You can also pay this amount in installments if you are not willing to pay the lump sum at a time. But remember that you will not get back your money once your application is turned down.

Step 4: Know the Officer’s Decision

After completing the payment, the official receiver will make a decision that is right for you. You need to co-operate with the receiver by answering all the questions asked to you and also provide any further information to complete the DRO stepchange process.

How long DRO Takes to Process?

Once you have provided all the correct information and fill up the application form it goes to the DRO Approved Intermediary for the approval. Then it will be sent to the Insolvency Service.

Complete the payment and it will take almost ten to fifteen days depending on the basis of your application.

What You Have to Pay to Get a DRO?

You should know that a apply for a dro online costs £90 but you can get it free from the Insolvency Service. When you completely paid the fee, then you should submit the application for a DRO. 

Debts Can be Paid Off With a Debt Relief Order

You can find some debts that use a Debt Relief Order. Generally, these debts are termed as qualified debts. In those debts money, you owe on are included. Such as overdrafts, credit cards, loans, utility, and phone bills, Council Tax, and many others. 

There are also some debts that you need to pay off with a Debt Relief Order. Some of those debts are Social Fund loans, Student loans, Magistrate’s fine, etc. Therefore, you can go to the free debt adviser in order to know which debts you can include in DRO and which you can’t include. 

What is the Process to Apply for a Debt Relief Order? 

Know first how to apply for a dro, if you want then you need to take help from an intermediary. Generally, intermediaries can approve your Debt Relief Order. Then, you will have to spend £90 in order to arrange a Debt relief Order. You are allowed to pay the £90 through installments over six months. After applying and paying the fee, an officer checks whether you are eligible or not and then grants your debt relief order by contact step change dro number

What is the Advice that You Can Get from a Debt Relief Adviser?

If you are planning to apply for a Debt Relief Order, then go to an experienced debt adviser first as it depends on your personal circumstances.  With the help of the debt advisor, you will be able to find the best solution. This will help you to free from debt as early as possible.

  • When you talk about your situation to them, they will treat you say in confidence. 
  • They will then provide you better ways and those will help you to manage the money. 
  • The Debt Advisor will never judge you and you will not feel bad about your situation. 
  • You will get some ways from them on how to deal with debts. 
  • They will always make sure that you have applied for all the benefits or not. In case any entitlements are available and that you missed, then they will make sure that you will get them. 

After talking to a debt advisor, you will be less stressed and you will have more control over your life again. You might have the following conditions before talking to an advisor. 

  • You might overuse your card and unable to find anybody who can lend you.  
  • There are certain things that might be spiraled out of control and it might take much longer to pay back. 

You can contact a debt advisor online or over the phone. Hence, it is the best to talk with the advisor face to face. 

Make Sure that DRO is the Correct Choice for You:

With the help of the Debt Relief Order, you will be able to get a solution to free from the debt. Before applying for it, make sure that you know the impact of a DRO as it has an impact on all areas of your life. 

  1. Sometimes you might have debt because of purchasing a higher amount of goods. It can be possible that you might have to return that good. 
  2. You should keep in mind that your DRO will stay on the credit card for those six years. Because of that, you will find difficulty in the future to find a new home. You might also be unable to get credit in the future. 
  3. It can be possible that you have a tenancy agreement and that can be affected. 
  4. Therefore, you will find that the bank will close your current account and now you need to open a new account. 
  5. If you apply for British citizenship, then it might be affected because of DRO. 

Certain Restrictions to Follow During the DRO Period:

During the DRO period, you will have to follow certain rules. These rules are called restrictions and you must have to follow them during the DRO period. Those are: 

  1. Without informing your creditor about DRO, you can not purchase a thing that costs £500 or more. 
  2. When you are approved for DRO, then you will be restricted to get involved in promoting. At that time, you can not set a limited company. So, if you want to become a company director, then make sure you have court permission. 
  3. When the DRO is in the force, you will find your details on the Insolvency Service’s Individual Insolvency Register after three months. Anybody can view your details easily. 

Is National Debt Relief a Good Choice?

If you are looking for ways to get relief from the credit card debt, then the national debt relief is the best choice for you. In case you want to get relief from a student loan, then also this option is the best choice for you. National Debt Relief helps you to negotiate a settlement that is 30 to 50 percent lower than the total debt. 

What is the Reason to Apply for a Debt Relief?

Debt Relief is not an easy fix and debts can be repaid through basic changes. So, if you face bankruptcy, debt management, then you can seek help from the step change dro number

It can be possible that you might not be able to repay the unsecured debt within five years. Such as credit cards, medical bills, personal loans, etc. Then, debt relief is the best choice for you to get rid of these issues. 

How Long A Debt Relief Order Take to Process?

The how long does a debt relief order take to process steps will be easier for you if you have the following documents. Some of those documents are wage slips, utility bills, council tax documentation, Lease Agreement and some of the other financial documents. 

Know the Steps to take a DRO:

It is a four-step process of debt relief order online application and follows them accordingly. 

Step 1: Contact to an Official DRO Advisor

Without an experienced step change dro advisor, you are not able to apply for a stepchange DRO manually. Only they can understand whether you are eligible for a stepchange dro or not as it has some strictest rules. So, if you want to get a DRO, then make sure that you are qualified with the following criteria for debt relief order online application. 

  1. First, make sure that you have a resident in Northern Ireland, Wales or England. 
  2. If you are a resident of England and Wales, then the debts should be less than £20,000 and for Northern Ireland, it should be less than £15,000. 
  3. Make sure that you have not purchased any home and the home should not be in the mortgage. 
  4. In case you have any car that should be less than £1000 and also your assets should be less than £1000. 
  5. Your income should be less than £50 per month or a disposable income. 

Step 2: Apply for the DRO

In this step, you should have all your documents ready which we mentioned above. You have to submit some of your personal details like your income, debts, and expenditure. You should not be nervous as the advisor will help you to gather that information. 

It needs to mention that, pay £90 to the Insolvency Service but you are able to pay that amount in installments. Note that before submitting the application formally, you must be paid the entire amount. When you pay the £90 fee, you will get the application from the Official Receiver. 

Step 3: Court Approval

Within 10 working days, your official receiver will process the application and make sure to take any bank holidays into the account. When the Bankruptcy Court gives you permission, then the stepchange dro will be approved. At that time, you will see that all your debts are frozen. This thing indicates: 

  1. You should not make payments to the debts and that includes in the DRO.
  2. At that time you will find that the interest and fees are completely frozen. 
  3. Because of the court approval, your creditors are not allowed to take any legal action against you. Even the creditors are not allowed to contact you. 

If you want your stepchange dro should remain in place for the 12 months, then make sure to cooperate fully with your official Receiver. 

Step 4: End of DRO

After 12 months if there is no change, then the DRO will view you. They will do this in order to know why you are unable to pay off the debts in a certain amount of time. This is the reason why the debts are written off. Hence, you need to keep in mind that you can only include the unsecured debts. You will then find your credit report on your DRO for 6 years. 

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Things You Should Not Do:

In this section, we have discussed a few things that you should not do and those are mentioned below. 

  1. If you don’t want to pay an unsecured debt, then make sure that you have not paid a secured debt late. Because of paying late, you can lose the collateral. 
  2. You should not borrow anything that is equal to your home and you should not withdraw money from the retirement savings. 
  3. Make sure that you are not borrowing money from a workplace retirement account. Because this loan will become an extra pressure for you if you lose your job. Due to this loan, you will have to pay the tax bill. 
  4. You should take your own decisions and don’t take the collector’s decision which they are trying to enforce on you. Instead of the collector’s decision, you should take your time to research and then select the best option for you. 

DRO FAQs

A Debt Relief Order is one formal debt solution provided to the people residing in Northern Ireland, Wales, and England to become debt-free. It is the best alternative to bankruptcy if you want to clear off your unsecured debts within a stipulated duration. A DRO is a court order that holds your debts for about 12 months, on the completion of which, if you are incapable of repaying, will be rendered debt-free. Creditors will write off all of your obligations as and when a DRO ends. The 12 months DRO duration is the moratorium period. As to how to apply for a DRO, you cannot apply for it by yourself. You have to do so through Government-approved competent authorities or intermediaries. You can also obtain further information on Debt Relief Orders by contacting Step Change DRO.
How to apply for a DRO? Is that what you are thinking. Well, you must meet the following eligibility points to use for a DRO: You must reside in Northern Ireland, Wales, or England for at least three years as a working person or permanent resident. Your debt value must not be more than 30,000 pounds (20,000 pounds in Northern Ireland). Your assets value must be less than 2,000 pounds (1,000 pounds in Northern Ireland). If you own a car, its worth should not exceed 2,000 pounds (1,000 pounds in Northern Ireland). After meeting your monthly household expenses, your available disposable income must not be more than 75 pounds ( 50 pounds if in Northern Ireland). If you meet all these points, you can apply for a Debt Relief Order through an official intermediary. If there is any need for personal debt advice or a DRO guide, you should contact Step Change DRO.
Among all the various debt solutions that aim to make a debtor write off their debts, a Debt Relief Order (DRO) is an inexpensive formal choice. Before applying for any insolvency method, you must seek Step Change DRO for impartial free advice. Anyhow, to know if DRO is the right debt option for you, you might want to think about: What type of debts do you owe? Who are your creditors? How much do your debts amount to? Are you capable of making any of the debt repayments? Do you have sufficient income and assets for disposal? Will your current living circumstances get better? Nonetheless, even after weighing out all your vulnerable factors, it is advisable to ask Step Change DRO for debt help. If probable, they will tell you how to apply for a DRO.
A debtor or an individual is not qualified to apply for a Debt Relief Order (DRO) if they meet the following points: If you are currently bankrupt. Suppose you had a Debt Relief Order (DRO) in the past six years. You can apply for a second DRO only after six years after the first DRO. If you are currently into an Individual Voluntary Arrangement (IVA) or have applied for an IVA. If you have received a Court undertaking or a bankruptcy restriction. If you have received a Court undertaking or a Debt Relief Restrictions Order (DRRO). If you have recently filed for bankruptcy but have not yet been addressed by the Court. If any of these terms apply to you, know that you are not qualified for a DRO. Contact Step Change DRO to know about how to apply for a DRO.
A Debt Relief Restrictions Order (DRRO) limits the individual’s or debtor’s activities for a certain period, usually between two to fifteen years. A DRRO restriction has to be strictly followed; if not adhered to, the individual will face fines or imprisonment subject to a breach of DRRO rules.
As an insolvency debt solution, a Debt Relief Order (DRO) allows the debtor to include all of their debts. When the Step Change DRO advises you how to apply for a DRO, you will know which debt to include or not. However, remember that you cannot add additional debt to your DRO after it starts. You have to bear that obligation. Regardless, debts that you cannot include in a DRO are: Social Security Benefits Overpayments Arrears on council tax and household bills. The conditional sale or Hire Purchase agreements. Credits from family and friends Financed contracts on items. Consumer debts include store cards, payday loans, overdrafts, credit card debt, or catalogs.
While you can include all your debts when you apply for a Debt Relief Order (DRO), there are a few types of debt that DRO does not cover. The creditors can recover the following debts even if a DRO is in effect. So, debts excluded in a DRO are: Social Fund loans Student loans Child maintenance arrears Criminal fines Court order for damages subject to personal injury. TV license arrears You cannot include these debts in a DRO as they are not permitted a debt limit. But, for fraudulent debts, even if they account for the debt limit, DRO will not write off this debt after the moratorium period ends. You can know more about such debt cases on Step Change DRO.
"How to apply for a DRO" is a very proper thought. If you do qualify, know that you have to bear some Debt Relief Order (DRO) costs. This costs if the Insolvency service fee. You can also think of this cost as a DRO setup fee. An average StepChange DRO costs around 90 pounds. This service fee is non-refundable. Since you can apply for a DRO after every six years gap, ensure that you provide correct and necessary information when you apply for a DRO. The DRO cost is to be given to the Official Receiver. Your DRO application will be accepted only after the 90-pound fee is paid in full. There is also an option to make a lump-sum payment or in installments. As per your debt needs, you can consider Step Change DRO. The debt advisor will guide you on how to apply for a DRO.
Along with the directorships, a apply for debt relief order online might influence your job if you are in a certain sort of profession for instance if you are an accountant, a solicitor, or insolvency practitioner. Well, you need to talk to your stepchange dro contact number professional body or HR department to determine if your job will be influenced. And in case you are planning to opt for a job role in security or anything related to finance, then your apply for debt relief order online might pose an impact on your employment prospects.
Well, a Debt Relief Order won’t influence an ongoing tenancy however you might find some difficulty or surprising problems while renewing or getting a new tenancy whilst your Debt Relief Order is in effect.
So, if your financial condition improves during the course of the apply for debt relief order online application, for instance, your earning enhances or you get a lump sum of money, you will be required to let the Insolvency Service aware of all these things so that they can assess your current financial condition & determine whether it will influence your debt relief order online application. Always bear in mind that there could be severe consequences if you fail to share this information with them that your situation has improved.
The whole balance of any joint debts would be incorporated in your application & will count towards the 30,000 pounds limit but, the joint party is not protected! Therefore, they will remain responsible for the full balance of any joint debts.
A debt relief order online application protects you from steps by most lenders listed in your DRO. But, certain creditors can still take steps against you, for instance for the rent arrears or a hire purchase debt. So, if you have come to a monthly payment arrangement with a bailiff, like a controlled goods agreement, then your Relief Order won’t prevent them from taking any legal step or selling your goods. Therefore, if you desire to keep all these belongings, then you’ll be required to keep making the monthly payments you have agreed to.
Well, rent arrears are actually the ‘qualifying debt’ that means they’ll be incorporated within your Debt Relief Order & no monthly payments will be made towards the debt. Henceforth, your landlord can not take any kind of action to recover the arrears, however, they can even remove you from the property. And you couldn’t have an allowance within your budget to pay back the arrears but, you can select to use your disposable earnings (that will be less than 75 pounds per month) towards the rent arrears.
During the 1 year that you are subject to a Debt Relief Order, you’re completely secured from further legal action relating to the debts. When this period completes, you’ll be discharged as well as free from all the responsibility for those debts.
Well, if you do not have a CCJ, then your creditor won’t be able to go towards a CCJ after the Debt Relief Order application form gets approved. And in case, if you’ve a CCJ, then a Debts Relief Order will stop the creditor from taking any further steps including legal steps against you for collecting the debt, like appointing bailiffs.
When your Debt Relief Orders gets approved you do not need to pay anything directly towards your lender, therefore, you can utilise whatever money you’ve to save for your holiday trip but, it would only be a very small amount as you’ve a Debts Relief Order since you must have less than 75 pounds leftover every month.
Of course, you can keep your vehicle as long as this is worth less than 1000 pounds, has been particularly adapted for a disability, or is subject to the Motability scheme.
Well, the answer is yes! A citizens advice debts relief orders would incorporate all qualifying debts. When your stepchange Debt Relief Orders gets approved you can not add any further debts to it! Therefore, if you miss a single payment by mistake, you will remain liable for paying it. And in case, if the debt takes you more than the 30,000 pounds threshold, your Debt Relief Order might be revoked.