Debt Relief Order Scotland
Debt Relief Orders (DRO) are available to people whose debts are significantly more than their assets. When debts spiral out of control, many people not only find it hard to make regular monthly payments but the lack of assets means that a debt free future is simply not possible.
DROs were introduced in April 2009 and, after talking through the various debt management options with us, if a DRO is the best option, we will refer to an official intermediary. They will then help you complete the online forms, submit them to the official receiver, who will then make the DRO.
Do you qualify for Debt Relief Order?
There are several qualifying factors you need to meet in order to be considered for a DRO:
- Your debts must not total more than £15,000
- Your assets must not exceed £300 (or a £1,000 for a car)
- After paying essential living costs, you must not have more than £50 disposable income left each month
- You must not have existing orders, such as Bankruptcy or an Individual Voluntary Arrangement (IVA)
- Neither must you have had a DRO within the last 6 years
When is a DRO not suitable?
If you own your own home or have significant assets, then a DRO would not be suitable; there are other options available to you.
How long does it last?
A DRO normally lasts for 12 months.
What you need to know before you apply for a Debt Relief Order
If you apply and are successful in gaining a DRO, then it will be made public on a register. You also need to bear in mind that some debts are not covered such as student loans and some others. Your employment may also be affected, and neither can you act as a company director or are in management without disclosing your DRO. You may also find it difficult to get credit whilst your DRO is in place. It could also be withdrawn if you do not comply with the official receiver during the 12 months the DRO is active.
As with all debt management plans, seek advice so that you know you are taking the right option for you. Debt Advice Scotland has helped hundreds of people to get their debts under control and look forward to a debt-free future.
Where We Can Help
Debt Advice Scotland provides debt relief order services for customers throughout Scotland, including: