What is a DRO?

The Wokingham Paper - - SOCIETY -

ADRO (Debt Re­lief Or­der) is one way to deal with your debts. You may be able to get a DRO if all of the fol­low­ing things ap­ply to you:

You’re un­able to pay your debts Your debts are worth up to £20,000 You’ve got £50 or less left over each month af­ter you’ve paid your usual house­hold ex­penses

You don’t own your home

Other sav­ings or things of value you own, called as­sets, are worth less than £1,000 (some as­sets are ig­nored when work­ing out the value)

You don’t own a car worth £1,000 or more, un­less it’s one that’s been spe­cially adapted be­cause you have a dis­abil­ity

You haven’t had a DRO in the last six years and aren’t go­ing through another for­mal in­sol­vency pro­ce­dure, such as bankruptcy or an in­di­vid­ual vol­un­tary ar­range­ment (IVA)

You’ve lived, had a prop­erty, or worked in Eng­land or Wales in the last three years.

If you’re un­sure about whether a DRO is right for you, in­clud­ing whether you’re el­i­gi­ble, speak to a DRO ad­viser. You can find a DRO ad­viser at Cit­i­zens Ad­vice Wok­ing­ham. While a DRO is in force:

You don’t have to make pay­ments towards most types of debt in­cluded in your DRO

Your cred­i­tors can’t force you to pay off the debts.

At the end of the DRO pe­riod, usu­ally around a year:

Your debts will be writ­ten off

You’re still re­spon­si­ble for pay­ing off any that aren’t in­cluded in the DRO - this is be­cause DROs don’t cover all debts.

To ap­ply for a DRO: There’s a fee of £90. If you can’t af­ford to pay the fee you may be able to get help towards the cost from some char­i­ties. You have to go to a DRO ad­viser, also called an ap­proved in­ter­me­di­ary - you can’t sub­mit your own ap­pli­ca­tion. You can find a DRO ad­viser at most lo­cal Cit­i­zens Ad­vice of­fices.

There are some char­i­ties and trusts that may be able to help with pay­ing the DRO fee, so it is worth ask­ing your DRO ad­viser about this.

You can get help, in­for­ma­tion and ad­vice from your lo­cal Cit­i­zens Ad­vice or visit www.cit­i­zen­sad­vice­wok­ing­ham.org.uk or con­tact Cit­i­zens Ad­vice Wok­ing­ham at Sec­ond Floor, Water­ford House, Erft­stadt Court, Wok­ing­ham RG40

2YF. Tel: 0300 330 1189. email: pub­lic@ cit­i­zen­sad­vice­wok­ing­ham.org.uk

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