Debt Relief Order (DRO)
Baines & Ernst is one of the few companies approved by the Secretary of State to provide Debt Relief Orders for free* throughout the UK. Click here to learn more about Baines & Ernst.
What is a Debt Relief Order?
A Debt Relief Order – also known as a DRO – is specifically designed for those on low incomes with substantial debts.
A DRO is a legally binding agreement and if you qualify, you will be freed from the unsecured debts listed in the order, which typically lasts for 12 months.
Alternative to Bankruptcy
A DRO is an alternative to bankruptcy and it doesn’t cost as much to process as Baines & Ernst provide the service for free. However you will have to pay an application fee of £90 which is paid directly to the Insolvency Service.
No monthly charges
Unlike other debt solutions, you will not be required to make monthly repayments to creditors.
Clear debts
DROs typically last for a period of 12 months, after this time you will be freed from the debts included in the order.
Creditor pressure removed
Creditors will no longer be able to contact you for payment – helping you to escape the pressure and stress caused by dealing with debt.
Do you qualify for a Debt Relief Order?
DROs are available to people who:
- Are unable to repay debts
- Have unsecured debts that do not exceed £15,000
- Have a low disposable income of £50 (a month) or less after paying for essential living expenses
- Have not had a Debt Relief Order in the last 6 years
To apply for a DRO you cannot own a home or assets that are worth more than £300 or be involved in any other type of insolvency procedure.
Only unsecured debts can be included in a DRO; such as personal loans, store card, credit card, catalogue accounts and bank overdrafts. Any secured debts like a mortgage, HP loan or council tax cannot be included in a plan. Child maintenance, student loans, TV licence or other household bills are also excluded from plans. Legally bindingAssets
A Debt Relief Order is a legally binding agreement and you must co-operate fully with the Official Receiver handling your case at all times. Failure to keep to the terms of the DRO could lead to repercussions such as Bankruptcy.Unsecured debtsAssets
To qualify for a DRO, your valuable assets must not exceed £300. Therefore you cannot be a homeowner or own valuable goods in excess of £300. If you do own assets over this amount you could be asked to sell them to help raise money to repay your creditors. Essential household items such as furniture and electrical items are not listed as assets.
If you own a car, you will be allowed to keep it providing the value does not exceed £1000 unless it has been specially adapted for you because of a physical impairment.
Unsecured debtsLegally binding
For more details, complete the enquiry form and a member of the Baines & Ernst team will get back to you.
Interested in becoming an Introducer to the Paymex Group? Visit our Introducers page.
* Baines & Ernst do not charge for providing DRO services, however there is a £90 application fee which is paid to the Insolvency Service.
