If you’re thinking about trying to fix your financial life, don’t worry — you are truly in good company. Millions of people all over the UK have thought about trying to do something to improve their financial lives. Without a good financial life, it’s hard to really enjoy the rest of your life. You might think that you don’t have too many other options, but you might actually be surprised. It won’t be overnight, but it is quite possible to get your financial life back on track. Some people might be considering declaring bankruptcy, which is one way of getting a fresh start. Yet bankruptcy has many downsides, one of which is that it’s very expensive to file. So you have to make sure that if you are really going to pursue bankruptcy you really think about the benefits outweighing the downsides. What if there was an alternative that you could explore instead of declaring bankruptcy? There is!
Meet the debt relief order, which is designed to help you get a fresh start, especially when you have a low income. It is not a service for people that have a moderate to high income at all.
There are numerous restrictions and qualifications that you must stick to in order to pursue this option. The DRO requires that you have debts of 15,000 GBP or less, and a low income in comparison to your debts. You cannot have savings of more than 300 GBP, and you cannot own a vehicle worth more than 1000 GBP. So you need to make sure that you’re not violating either of these rules and you’ll be just fine.
You need to make sure that you get with an authorized adviser that will check if you meet the conditions or not. They will apply for the order on your behalf. The order is 90 GBP but this can be paid off in installments over six months. If you’re at the point where you need a DRO, then you can definitely appreciate this type of payment plan.
You also must make sure that you have spare available income or 50 GBP or less a month after paying your normal household expenses. As you can see, this is specifically designed for those with a very low income.
There are only a few types of debts that can be included with a debt relief order. These debts include credit cards, overdrafts, loans, rent, utilities, telephones, council tax, social fund loans, and buy now / pay later agreements.
If you are applying for an IVA, you cannot do a DRO. You also cannot apply for a DRO if you are trying to pursue bankruptcy.
Is this a good way to go? Well, that depends if you meet all of the requirements. If you actually do, then it means that you’re going to be in for some good news.
You won’t have to make any payments to those debts, and that means that you have time to actually save up some money as well. Your debts will be written off as well, which means that you don’t have to pay them.
Keep in mind that you need to let the Official Receiver know of any changes that happen during the time you have the debt relief order.
It’s a very restrictive process, but it’s definitely worth checking out if you really want to move forward. Check it out forward!