Questions about Debt Collectors rights

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It either stands for Durham Registry Office or Debt Relief Order, depending on your location and circumstances.

 

A Debt Relief Order (DRO) is a form of insolvency which is designed to help people who have relatively low debt, little surplus income and few valuable assets - and who have no realistic chance of paying off their debts within a reasonable time.

 

 

Available as of 6th April 2009, a DRO will last for 12 months:

• during which, any creditor named on the order cannot take any action to recover their money unless they have the court`s permission, and
  
• after which, the individual will be freed of the debts included in the order (unless their circumstances have significantly improved).
  

DROs don`t involve the courts, and are run by The Insolvency Service in partnership with debt advisers known as `approved intermediaries` - the people who actually help individuals apply to the Service for a DRO.

 

People can only enter a DRO if they meet the following conditions:

• They must be unable to pay their debts.
  
• They must not owe more than £15,000.
  
• The total value of their assets must not exceed £300 - although they can own a car worth up to £1,000.
  
• Their disposable income (after tax, national insurance contributions and normal household expenses) must not exceed £50 per month.
  
• They must live in England or Wales - or have lived / carried out business in England Wales at some time in the last 3 years.
  
• They must not have been subject to another Debt Relief Order in the previous 6 years.
  
• They must not be involved in another formal insolvency procedure at the time they apply.
  

Some debts cannot be included in a DRO - such as :

• Magistrates` court fines,
  
• Student loans, and
  
• Secured debts (debt secured against property)
  

Secured debts are unlikely to be an issue anyway, as owning property would probably mean you`re not eligible for a Debt Relief Order, as your assets would almost certainly be worth more than £300.