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Lenders are not allowed to contact or chase you for payment and you do not need to make any payments to lenders for 12 months. Not all debts qualify to be written off under a Debt Relief order. Debts such as student Loans, child support maintenance and magistrates courts fines are ineligible under the scheme.


A Debt Relief order will appear on your credit file and you will find it difficult to obtain credit for a period of 6 years. In addition, your details will be added to the insolvency register A fee of £90.00 which is paid to the insolvency service. You can apply for a DRO through an There is a list of approved intermediaries listed on the Insolvency Service website.






This means we are able to offer debt advice and deliver both formal and informal solutions. DRO’s do need to be carefully considered and you must take independent debt advice. debt solutions. We hope that the information and debt advice on this site including Frequently Asked Questions, will help inform you. There are sources of free debt advice and services.


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Finding yourself in debt is more common that you might think. But you don’t have to face the worries alone. There are plenty of places that you can go to where you can get free advice on how to tackle debt problems. The Citizens Advice Bureau or the Money Advice Service are good places to start.


A DMP is an informal plan which enables people with (usually) up to £10,000 of debt to reduce their monthly debt payments into one single affordable amount. As a DMP is not legally binding, it can usually be set up in a matter of days. It’s an agreement between you and your creditors to pay off all of your debts.


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A DMP provider can sometimes negotiate with creditors to freeze or reduce any interest and charges on the debts within the DMP. Money that is paid to a DMP provider is then split and shared out between each of your creditors. Below are some of the main advantages and things to consider.


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A DMP is an informal agreement that avoids the need for formal insolvency procedures such as a Debt Relief Order, Bankruptcy or an Individual Voluntary Arrangement (IVA). Make only one affordable repayment each month. However, take into account that with lower payments comes a longer duration of plan. The repayment amount is calculated to ensure there is enough money left to cover household bills each month.


A provider will review the plan at regular intervals to make sure that a DMP is still suitable. Should circumstances change, they can discuss the options available to deal with any changes. This may include changing payments. A DMP is confidential and not a matter for public record. You are responsible for your debts.


Remember that a DMP isn’t legally binding. Interest and charges may be added; making this decision is up to creditors. Debts could increase if conditions of the DMP aren’t completed or adhered to. If your payments are lowered for a change in circumstances then the term of your DMP will increase. debt support.


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If less than the required monthly payment is being paid, then it will be harder to get further credit. An AO is a repayment plan arranged by the Courts in England, Wales and Northern Ireland, for individuals with less than £5,000 of total debt and one or more county court judgments.


Find out more about the pros and cons of an Administration Order. An AO legally protects from creditors trying to recover debts. The court is paid one single payment each month and they will share this (minus their fee) among creditors. If your financial circumstances change for the worse, you can apply for your payment amount to be reduced.


An AO is only issued if there are more than one Court Judgments and owe less than £5000 in total debts. Your AO will last until all of your debts have been repaid in full. Should your circumstances change, your case may be reviewed. This may include changing your payments.


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If this is the case you will need to consider alternative solutions. Administration orders will adversely affect your credit rating. Bankruptcy is a court based procedure in which all financial affairs are taken under the control of an “Official Receiver” or a “Trustee”, who has the power to sell assets to pay creditors.




The Insolvency Service states that bankruptcy should always be a last resort. Below are some of the main advantages and things to consider. Find out more about the pros and cons of bankruptcy. Creditor collection activity will cease. Debts could be written off after twelve months. When filing for bankruptcy, interest and charges on included debts will be frozen.


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Bankruptcy is a matter of public record - details of the bankruptcy are listed on the Insolvency Service website, which the public can access. Assets other than those which are essential to domestic needs, tools of the trade, and vehicles needed for work could be lost. The main effect of this is that if homeowner’s equity in the property could be forced to sell - debt experts.


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An initial fee of £705 is required in order to access the solution, and is payable up front. A DRO is a legal procedure administered without court involvement by the Insolvency Service. An application for a DRO must be made through an approved DRO intermediary. In order to apply for a DRO, you must meet certain conditions including having debts less than £20,000* (*Debt levels differ in Northern Ireland), not owning/having an interest in any property/assets over the value of £1,000 and having a disposable income of less than £50 per month.

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