An Insolvency Option for Overwhelming Debt
A Debt Relief Order (DRO) is an insolvency option available in England, Wales, and Northern Ireland for individuals unable to repay their debts.
DROs are suitable for those with little to no disposable income and assets below a specific threshold.
Debt Write-Off: How DROs Can Erase Your Debts in 12 Months
With a DRO, you can have your debts written off after a 12-month period.
During the DRO period, you are not required to make any payments to your creditors.
Once the DRO period ends, you are freed from the debt, and the remaining debts are discharged.
The Role of DROs
DROs can be a helpful solution for individuals struggling with overwhelming debt.
However, entering into a DRO can have significant consequences for your credit score and future access to credit.
Credit Consequences
It is crucial to seek professional financial advice before considering a DRO to fully understand the implications and explore alternative options.
- It is crucial to seek professional financial advice before considering a DRO to fully understand the implications and explore alternative options.
Making Informed Decisions
Understanding the impact on your creditworthiness and exploring other debt management solutions is essential before committing to a DRO.
Prioritising financial planning, budgeting, and seeking additional support, such as debt counselling or money management courses, can also be beneficial in regaining control of your finances.