How to Apply for Debt Relief Order: Expert Guidance

How to Apply for Debt Relief Order (DRO): Expert Guidance by Rajnish Tyagi

How to Apply for Debt Relief Order: Expert Guidance

We recently held a debt awareness conference on 5th April by popular demand, focusing on Debt Relief Orders (DROs). If you’re feeling overwhelmed by debts and need help, you’re in the right place.

Dealing with debt can be really tough. Many people and businesses in the UK are facing similar challenges and feeling lost about what to do. But there’s hope and practical help available, like Debt Relief Orders (DROs).

In this straightforward guide, we’ll explain how to apply for a DRO step by step. With advice from Mr. Rajnish Tyagi, a trusted debt advisor at Acme Credit Consultants Ltd, we want to give you the knowledge and tools to take control of your finances. Mr. Tyagi has extensive experience helping individuals and businesses navigate debt solutions, and today, he’ll be sharing his expertise on DROs. Whether you’re struggling with personal debts or business finances, understanding DROs can be a big step towards a better financial future.

Let’s start this journey together and learn how Debt Relief Orders can help you get back on track financially.

What exactly is a Debt Relief Order?

Firstly, let’s clarify what a Debt Relief Order (DRO) is and how it can benefit you. A DRO is a legal solution designed for individuals who are unable to pay off their debts. It provides a pathway to financial recovery by halting payments towards certain debts for a specified period, usually 12 months. Once the DRO period ends, you’re typically freed from those debts, offering a fresh start.

What You Need to Know Before Applying

Before applying for a Debt Relief Order (DRO), it’s crucial to ensure that you meet specific eligibility criteria. Here are some key points highlighted by Mr. Rajnish Tyagi:

  1. Debt Amount: Your total debts (excluding student loans, secured loans on your home, and child maintenance payments) must be under £20,000 in Northern Ireland and under £30,000 in England and Wales.
  2. Location : You must live in England, Wales, or Northern Ireland.
  3. Assets: Your savings or valuable items should be worth less than £2,000 in total.
  4. Vehicle Value: If you own a vehicle, it should be worth less than £2,000.
  5. Income: You should have insufficient funds left at the end of each month to make debt repayments.
  6. Residency: You must have lived or worked in England or Wales in the last 3 years.
  7. Bankruptcy History: You should not be currently bankrupt or have had a DRO in the last 6 years.

If you meet these criteria, you’re eligible to apply for a DRO and take the first step towards debt relief.

Expert Guidance on Applying for a Debt Relief Order (DRO)

Step-by-Step Guide to Applying for a Debt Relief Application Process:

Debt experts assist numerous UK citizens in understanding the steps to apply for a Debt Relief Order (DRO). Let’s go through these steps together:

  1. Seek Expert Advice: Before anything else, it’s crucial to seek guidance from a certified debt advisor like Mr. Rajnish Tyagi at Acme Credit Consultants Ltd. They will assess your eligibility for a DRO and provide tailored advice.
  2. Free Debt Advice: Take advantage of free debt advice sessions offered by reputable firms like Acme Credit Consultants Ltd. These sessions are invaluable in understanding your options and crafting a suitable debt relief strategy.
  3. Eligibility Check: The debt advisor will conduct a thorough assessment to determine if you meet the eligibility criteria for a DRO. This includes factors such as total debt amount, assets, income, residency, and bankruptcy history.
  4. Application Process: If you qualify for a DRO, the debt advisor will assist you in completing the application. Remember, you cannot apply for a DRO on your own; it must be done through an approved advisor.
  5. Payment of Fees: There is a one-time administration fee of £90 for a DRO. You can pay this fee in cash at designated points or discuss fee coverage options with your advisor.
  6. Debt Evaluation: Your debts will be evaluated to determine which ones can be included in the DRO. Qualifying debts typically include credit cards, loans, rent arrears, and certain taxes.
  7. Application Submission: Once your application is complete, the debt advisor will submit it to the Insolvency Service on your behalf.

Understanding Restrictions and Responsibilities for DRO

While a DRO offers relief from certain debts, it also comes with restrictions and responsibilities:

  • Borrowing Limit: You cannot borrow more than £500 without informing the lender about your DRO.
  • Financial Transactions: Avoid writing cheques without sufficient funds or engaging in undervalued transactions during the DRO period.
  • Business and Directorship: Certain restrictions apply if you’re involved in managing a business or acting as a company director.
  • Compliance: It’s crucial to comply with all DRO restrictions to avoid potential extensions or penalties.

Post-DRO Period

After the 12-month DRO period ends, you’ll be relieved of the specified debts listed in the DRO. However, it’s important to keep all related paperwork for future reference, especially when dealing with creditors or updating your credit reference file.

Recently asked many questions from debt adviser

Here are some of the questions that individuals have recently asked debt counselors about Debt Relief Orders (DROs), along with their answers:

Q: Can I Apply for a DRO Myself?

A: No, you cannot apply for a Debt Relief Order (DRO) yourself. DRO applications must be made through an approved debt advisor who will assess your eligibility and guide you through the application process.

Q: How Can I Get Fast Relief from Debt?

A: Seeking expert advice, exploring debt relief options like DROs, and following a structured debt management plan can help you achieve relief from debt.

Q: What Happens if My DRO is Approved?

A: If your DRO is approved, it typically lasts for 12 months. During this period:

  • You won’t have to make payments towards the debts included in the DRO (interest and charges are also frozen).
  • Creditors cannot take legal action against you to recover these debts.
  • However, you’ll still be responsible for essential outgoings like rent, utilities, and council tax.
Q: Is there any impact on Your Credit Rating? 

A DRO will be registered on your credit file for 6 years. This might affect your ability to access credit products like loans and mortgages for a while. However, it shouldn’t prevent you from opening a basic bank account or getting essential services like phone contracts on a pay-as-you-go basis.

Debt Relief Services: Free Help is Available!

Take control of your financial future today! Get started with free debt relief services and receive expert guidance tailored to your needs. Don’t let debt hold you back – click here to schedule your consultation now!

Schedule your free consultation today, Visit :  https://acmecredit.co.uk/debt-management-help/

Debt Advice Helpline : 0203 318 0990, +44 7779648018

Email : debt@acmecredit.co.uk

A heartfelt thank you to everyone who joined our debt awareness webinar. Your active participation and interest in learning about Debt Relief Orders (DROs) and debt management strategies made the advice conference a success. Special thanks to Mr. Rajnish Tyagi for sharing his expertise. Let’s keep working together towards financial well-being!

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