Together, we’ll help you resolve your debt problems in the best way for you.
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manage your debt with a debt relief order
A debt relief order (DRO) allows you to pause your debts for 12 months and you could have them written off after that time.
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what is a debt relief order?
If you owe less than £50,000, have a vehicle worth less than £4,000, have other assets of less than £2,000, and are left with less than £75 each month once your bills and living costs are paid, you could be eligible for a debt relief order (DRO).
A DRO is an agreement between you and your creditors to cease making payments towards your debts for a period of 12 months. If, after this time, your financial position has not changed, all unsecured debts that were included in your DRO are written off in full. Not all debts can be included in a DRO so please make sure that you speak to us to make sure that your specific debts can be included. As with any formal debt solution it is important to seek professional advice before deciding to enter into a DRO. Please contact us today for free, confidential advice.
benefits
Here’s how a DRO can help you regain financial freedom.
lasts for 1 year
stop payments
stop creditors contacting you
no costs
debt freedom after 1 year
considerations
highest asset value
Applications for a DRO will be rejected if you have assets over £2,000 or own your own property.
income improvements
If your circumstances change and you can afford to make repayments or you fail to co-operate the DRO can be revoked meaning you’re liable for all the debt plus interest and charges.
public register
Your information is placed on a register of insolvencies which is a public register.
impact on credit rating
Your credit rating will be affected during the course of your DRO for a period of 6 years beginning with the commencement of your DRO.
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frequently asked questions
how long does it take to get a DRO approved?
Once you’ve provided us with all the necessary information and paid the £90 fee to the Insolvency Service (which will be waived from April 6, 2024), we’ll proceed to submit your Debt Relief Order (DRO) application. The Insolvency Service typically makes a decision within ten working days, equivalent to two weeks.
While it’s possible for a debt relief order application to be refused, we only submit one if we are confident it meets the necessary criteria for acceptance.
If your DRO application is declined, the Insolvency Service will send you a letter outlining the reasons. The main reasons for refusal typically include:
• Not meeting the eligibility criteria.
• Suspected lack of honesty in your application.
• Failure to provide requested additional information.
While it’s possible for a debt relief order application to be refused, we only submit one if we are confident it meets the necessary criteria for acceptance.
If your DRO application is declined, the Insolvency Service will send you a letter outlining the reasons. The main reasons for refusal typically include:
• Not meeting the eligibility criteria.
• Suspected lack of honesty in your application.
• Failure to provide requested additional information.
is there an income limit for a DRO?
There’s no set income limit for a debt relief order (DRO). What matters most is the amount of money you have remaining each month after covering all your essential household expenses. If you have more than £75 leftover per month, you won’t be eligible for a DRO.
what happens 12 months after getting a DRO?
A debt relief order lasts for 12 months. This 12-month period is known as the ‘moratorium’. During that time, you won’t make any payments towards the debts included in your DRO and your creditors can’t chase you to pay.
If your situation hasn’t improved during the 12 months, those debts are written off, meaning you don’t have to pay them back.
If your situation hasn’t improved during the 12 months, those debts are written off, meaning you don’t have to pay them back.
can having a DRO affect my job?
For most people, getting a debt relief order (DRO) won’t affect their job. However, if you work in finance or law, your employment contract might not allow you to keep your job if you become insolvent, and a DRO counts as insolvency. Some public service jobs, like in the army or police, could also be affected, although this is less common these days.
It’s a good idea to check your work contract, as the impact of a DRO might depend on how long you’ve been in your role and if you handle finances. Also, some professional or licensing organisations might not let you renew your membership if you’ve experienced insolvency.
It’s a good idea to check your work contract, as the impact of a DRO might depend on how long you’ve been in your role and if you handle finances. Also, some professional or licensing organisations might not let you renew your membership if you’ve experienced insolvency.
can having a DRO affect my mortgage?
If you have a mortgage or own a home, you won’t qualify for a debt relief order (DRO). Also, you can’t take out a mortgage while you’re under a DRO.
Typically, a DRO lasts for 12 months. After this period, in theory, you could apply for a mortgage. However, a DRO stays on your credit file for 6 years from its initiation. During this time, it will be challenging to secure a mortgage from a mainstream lender. While it may be possible to obtain one from a specialised lender catering to individuals with poor credit histories, these options tend to be costly.
If you’re considering taking out a mortgage within the next six years, a DRO might not be the best solution for you.
Typically, a DRO lasts for 12 months. After this period, in theory, you could apply for a mortgage. However, a DRO stays on your credit file for 6 years from its initiation. During this time, it will be challenging to secure a mortgage from a mainstream lender. While it may be possible to obtain one from a specialised lender catering to individuals with poor credit histories, these options tend to be costly.
If you’re considering taking out a mortgage within the next six years, a DRO might not be the best solution for you.
how long does it take to set up a DRO?
To help us complete your debt relief order (DRO) application, we’ll need details about your financial situation. Initially, we’ll inquire about your income, essential expenses, and debts. It’s important to provide proof of these amounts, so it’s beneficial to gather relevant documents beforehand. These documents may include:
• Wage slips
• Benefit award letters
• Utility bills
• Council tax letter
• Bank statements
• Recent statements from your creditors
Once we have all the necessary information and you’ve paid the £90 fee to the Insolvency Service (which will be waived from April 6, 2024), we’ll proceed to submit your DRO application. The Insolvency Service typically makes a decision within ten working days, equivalent to two weeks..
• Wage slips
• Benefit award letters
• Utility bills
• Council tax letter
• Bank statements
• Recent statements from your creditors
Once we have all the necessary information and you’ve paid the £90 fee to the Insolvency Service (which will be waived from April 6, 2024), we’ll proceed to submit your DRO application. The Insolvency Service typically makes a decision within ten working days, equivalent to two weeks..
can a DRO stop bailiffs?
During your Debt Relief Order (DRO), creditors are generally restricted from taking action against you, except under very specific circumstances.
One such circumstance where a creditor can continue their actions against you is if you’ve established a payment arrangement with a bailiff, such as a controlled goods agreement. In this scenario, your DRO won’t prevent them from seizing and selling your belongings. To retain your possessions, you’ll need to honour the agreed-upon payments with the bailiff.
One such circumstance where a creditor can continue their actions against you is if you’ve established a payment arrangement with a bailiff, such as a controlled goods agreement. In this scenario, your DRO won’t prevent them from seizing and selling your belongings. To retain your possessions, you’ll need to honour the agreed-upon payments with the bailiff.
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take back control
Taking back control is simple, but it can be a bit unnerving, so we keep you in the loop at all stages. Here’s what will happen after you get in touch.
We will call you to discuss your circumstances.
We help you decide on your best course of action.
We will help guide you through the process.
Care About Money Limited
Registered Office: The Granary 50 Barton Road, Worsley, Manchester, England, M28 2EB. Registered in England and Wales Registration number 13444035. ICO registration number ZB723901.
Care about money Ltd FRN 962287 is an appointed representative of Promethean Finance Limited FRN 662425.
Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA. If your IVA fails, it could lead to Bankruptcy, although this is rare and alternatives may be available. Your ability to obtain credit will be affected for the medium to long term. Homeowners may be required to release the equity in their property, if unable to release equity and equity is available creditors may request an additional 12 months payments in compensation.
Care About Money does not directly provide debt solutions, it will provide advice and refer you to one of it’s trusted debt solution providers should you choose a solution that suits your requirements. We will receive a fee if you enter into an agreement with one of our partners. Adele Cardoso is licenced as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association.
All work undertaken by Arkle Insolvency Limited and Adele Cardoso (IP number 30710) is subject to the Insolvency Code of Ethics. Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA. If your IVA fails any debts remaining will not be written off. Failure of your IVA could lead to Bankruptcy, although this is rare and alternatives may be available. Your ability to obtain credit will be affected.
Registered Office: The Granary 50 Barton Road, Worsley, Manchester, England, M28 2EB. Registered in England and Wales Registration number 13444035. ICO registration number ZB723901.
Care about money Ltd FRN 962287 is an appointed representative of Promethean Finance Limited FRN 662425.
Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA. If your IVA fails, it could lead to Bankruptcy, although this is rare and alternatives may be available. Your ability to obtain credit will be affected for the medium to long term. Homeowners may be required to release the equity in their property, if unable to release equity and equity is available creditors may request an additional 12 months payments in compensation.
Care About Money does not directly provide debt solutions, it will provide advice and refer you to one of it’s trusted debt solution providers should you choose a solution that suits your requirements. We will receive a fee if you enter into an agreement with one of our partners. Adele Cardoso is licenced as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association.
All work undertaken by Arkle Insolvency Limited and Adele Cardoso (IP number 30710) is subject to the Insolvency Code of Ethics. Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA. If your IVA fails any debts remaining will not be written off. Failure of your IVA could lead to Bankruptcy, although this is rare and alternatives may be available. Your ability to obtain credit will be affected.