Debt Relief Orders
Ever heard of Debt Relief Orders or DRO in short? Well, a Debt Relief Order is an alternative to bankruptcy which helps certain classes of debtors. If you are a debtor who does not own a home, have little spare income and with little chance of seeing an improving financial position, then Debt Relief Order may just be what you need to help you tide over.
Debt Relief Orders are issued by the Official Receiver. The OR will write to your creditors informing them that they cannot take any action to recover money from you without leave from the court. They will also inform your creditors that you are not allowed to service your debts and that you will be discharged from your debts when the order ends which usually lasts for a year or so.
However, bear in mind that a DRO may be amended or even cancelled in the event your financial position improves. Do also note that if you are already a bankrupt or is currently under the IVA, you may not apply for a Debt Relief Order.