Do I need to go to court to apply for a DRO?
No. A DRO involves no court hearing and the order is not made by a judge.
Will I have to make any further payments into the DRO once I’ve paid the £90 fee?
No. The £90 fee is used to process the DRO and is all you have to pay.
I don’t have the £90 to pay for a DRO. Are there any funding options available to me?
In some cases, you can apply to have the fee paid by a charity or trust fund, but it’s not guaranteed that you’ll qualify. Should you be recommended a DRO, we can talk you through the process of applying for help with your DRO fee.
Are any debts excluded from a DRO?
Yes. The following debts are not included in a DRO;
• Student Loans
• Magistrates’ court fines
• Maintenance, Child Support Agency (CSA) and Child Maintenance Service (CMS) payments and arrears
• Social Fund Loans (Crisis loans)
• Debts incurred under the Proceeds of Crime Act
• Debts resulting from certain personal injury claims made against you
How will a DRO affect my credit rating?
A DRO will be registered on your credit file for six years, which will affect your credit rating. During this time you’ll find it harder to take out any further credit.
What assets are taken into consideration in a DRO application?
Assets which are taken into account for a DRO include:
• Savings, shares or investments
• Property or land you own
• High value household items such as electrical goods or jewellery
• Money other people owe to you
If you own assets like these totalling more than £1000 value if you live in England or Wales or £300 if you live in Northern Ireland, your DRO won’t be approved.
Some assets aren’t taken into account. If you own any of these, you won’t be ruled out of a DRO as long as the value of the items is not excessive:
• One motor vehicle worth no more than £1,000
• Tools and other items needed for your job
• Ordinary household furnishings, appliances, clothes and bedding
• A tenancy deposit held by your landlord
Money you have saved in a pension fund doesn’t count towards the asset limit. But if you’re over 55 and you could draw down enough money from your pension fund to pay off all your debts, you won’t qualify for a DRO.
Where will my DRO be listed?
Your DRO and details such as your name and address will be listed in the Individual Insolvency Register (IIR). Your details will be listed for the duration of the DRO (12 months) and usually removed within three months of the case ending.
An application can be made to keep your address details off the Individual Insolvency Register. This is only granted in exceptional circumstances however, such as where there’s a risk of domestic violence or other personal harm.
Can a DRO affect my job?
DROs may affect some jobs if the employment contract specifies that the client can't be insolvent. This is most likely to be an issue in the finance and legal sectors, but other jobs may also be affected.
I have power of attorney for a vulnerable person and I believe a DRO would be suitable for them. How would I look into this?
When an authorised third party contacts us on behalf of a person for who they have power of attorney, we would look at the person’s budget and explore all possible debt solutions, as well as a DRO. However, we can only do this once power of attorney has been proven by means of a letter of authority.
Please contact us for more information on how to seek debt advice via power of attorney.