Debt Relief Order: Are You Eligible for Debt Relief Order Step Change?
Affording your debts can go beyond your capabilities, and you might have to look for alternative ways to deal with debt repayments. One of such schemes is the Debt Relief Order Step Change. This is basically an Insolvency Practice to apply for. When the debtor or borrower is struggling with his or her finances, a debt relief order can really be a relief.
While applying for debt relief orders, you have to keep in mind that a debt relief order freezes your debt payments and interests for a year. However, a debt relief order doesn’t apply for a debt relief order to you if you owe a large amount of debt. Debt relief orders are suitable for low amounts of debts. If you qualify for a DRO or debt relief order, then step change debt relief order can help you complete the entire procedure.
Step change debt relief orders will secure you from a situation when you can’t afford to pay your debts. If your financial condition doesn’t improve even after 12 months, then every debt mentioned in your DRO will get legally written off.
The best thing about DRO is that all the listed creditors in your DRO can’t harass you anymore. Additionally, they can’t go against the debt relief order and take legal action against you. If you’re thinking of apply for a debt relief order then you should consider our advice and suggestions.
What is a Debt Relief Order UK? How it Works?
Debt relief orders come with their own set of criteria. Generally, there are a few terms and conditions for those who want to qualify for debt relief order UK. As a qualifying member, you should not owe more than £30,000. Now, your monthly income can’t exceed £75 after deducting all your essential expenses. In addition to this, you have an asset that values less than £2000. If you own a car, then it should value less than or equal to £2000.
Most importantly, you have to be a resident of England or Wales for a minimum of 3 years. Debt Relief Orders are not valid in Scotland. And, you shouldn’t apply for a debt relief order in the last six months. So, these are the eligibility criteria for debt relief order. Well, you have to pay £90 as a DRO fee to make a fresh start. And, we think £90 is a much cheaper option than bankruptcy.
Apart from this, there will be a set of restrictions applied to you when you have applied for a DRO. Here are the restrictions that come with a debt relief order UK:
- A debtor can’t borrow over £500, without informing the creditor about the existing DRO
- You can’t go for a DRO if you are a director of a company
- Losing the power to establish, manage, or advertise a company without orders from the court
- You can’t lead a business with partners without informing them about the existing DRO
On the other hand…
You have to inform the bank or building society if you have to open a bank account. However, the restrictions are meant to stay for 12 months. If you don’t behave accordingly, then the period might extend. When you are still under your debt relief order step change policy, you need to pay your bills and rent. In addition to this, you have to carry on with repaying your student loans, court fines, and similar debts.
The creditor can cancel your DRO, in case you are able to break through your current financial situation. Besides this, if you don’t cooperate with the official receiver or don’t hand over the required documents, then they can cancel the existing DRO. If you succeed to get a debt relief order step change, then it will be presented on the Public Register.
Benefits of Step Change Debt Relief Order UK
There are tons of benefits if you are selected for it. However, you have to strictly qualify for the Debt Relief Order. Step change debt relief order can help you to achieve the right debt relief order for you. Now, let’s take a quick look at the advantages of debt relief orders.
- At the end of the debt relief order, your debts get written off legally. There are a few debts that DRO doesn’t count in. So, you might have to continue paying them off.
- Creditors who have agreed to a DRO in your name can’t harass you anymore. It means that you can say goodbye to the legal actions taken by the creditors.
- DRO allows you to make a fresh start towards your financial life. After 1 year, every restriction is lifted. You have to make a payment of £90. If you can’t afford this amount a single time, then you can opt for installments. Make sure that you mention the instalment payment while applying for the debt relief order.
- You are free to keep your vehicle and assets with you if they are under the permissible value.
So, go for an expert session from debt relief order step change to learn more about debt relief orders. Additionally, our professionals can suggest whether you are eligible for a DRO or not.
Risks of Debt Relief Orders
When you’re talking about any debt-related schemes that can write off your debt in full, they always come with potential disadvantages. So, in case you are determined to go with a debt relief order UK, then you must keep an eye on the risks associated with debt relief orders.
Here are a few downsides of debt relief order step change:
- No borrower can go for a DRO if he or she already possesses a bankruptcy order, an IVA, or anything in between. In addition to this, you should not have gone for a debt relief order in the last 6 months.
- DRO doesn’t apply to you in case you have a house. It applies to your home even if there’s no equity.
- Your DRO will appear in the Public Register.
- A debt relief order might harm your employment status.
- You have to pay certain types of loans and fines. It’s important that you pay off debts arising from your family proceeding even when you are under a DRO.
- You can’t stay as a director of a company unless the court passes its verdict.
- It will be counted as an offence if you try lending £500 from a lender without letting the lender know about your existing DRO.
- If your behavior seems to be reckless or dishonest, then the period of DRO can extend from 2 to 15 years.
Most debts are included under a Debt Relief Order. They are household utility bills, consumer debt, such as store and credit cards, council tax, and much more. However, there are some excluded debts such as child maintenance, budgeting loans, criminal fines, student loans, TV license arrears, etc.
To know more about loopholes regarding debt relief orders, get in touch with debt relief order step change and its experienced professionals.
Frequently Asked Questions
If you have queries regarding debt relief orders then you have to reach Step To Changes. Our experts will check whether you’re eligible for a DRO. If yes, then you have to fill out some necessary forms, and our DRO specialists will proceed with the remaining steps.
However, here are a few questions that we get from most of our customers. Hopefully, the answers might help you.
When you are a resident of England and Wales, the debts should be less than £30,000. And, you can’t have more than £75 after paying off your utility bills and living expenses. You can’t have assets of more than £2000. Additionally, a vehicle of value £2000 or more is not allowed for you to have.
If you’re in Northern Ireland, your debts can’t exceed more than £20,000. Moreover, you can’t possess a monthly income over £50 after deducting monthly expenses. Finally, you are not permitted to have a car or asset of more than £1000. If you qualify for all these conditions, then you can apply for a DRO.
Debt relief orders cover overdrafts, loans, credit cards, council tax, utilities, hire purchase agreements, buy now – pay later agreements and social fund loans. However, you might have to return those goods that come with the hire purchase agreements. You can’t pay for goods once you apply for a DRO. Yet, DROs don’t cover student loans, court fines, child maintenance, and confiscation orders.
If you think that you are eligible for applying for a debt relief order, then you should contact us. Our experienced financial experts will check out the criteria and suggest whether it’s the right option for you right now. In addition to this, we will verify whether you qualify or not. Otherwise, you might experience consequences.
We’ll help you to fill out the DRO form. And, we’ll approach your creditors with evidence and get the DRO applicable to you. Thus, connect to Step To Changes to get a successful DRO.
There can be instances where several borrowers might not qualify for debt relief orders. If you don’t qualify for DRO, then don’t worry. There are other debt management policies that might fit your financial conditions. Step To Changes can tell you which debt-related scheme will be helpful for your current situation. So, don’t lose hope and join our initiative to make yourself debt-free.
Generally, debt relief orders come with a period of 12 months or 1 year. After it completes, all your debts get written off. This is a legal process, and no creditor can pressure you to pay anything. There’s no need to pay off your debts anymore when the DRO is over.
Contact Us to Get Further Advice Regarding Debt Relief Order
Dealing with debt relief orders can be crucial from time to time. If you are not aware of everything, Call on step change debt relief order number it can ruin your chances of getting the benefits you deserve. You need to understand all the related factors associated with DRO. Go for Step Change Contact Number supervised consultation sessions to get the right assistance for your financial future.