Managing Bank Accounts and Household Bills during a DRO
During the DRO period, you may face challenges with managing your bank account, as some banks may freeze or close accounts when a DRO is approved.
Opening a basic bank account before applying for a DRO is advisable, as these accounts typically have fewer restrictions and are less likely to be affected.
You will still need to manage your household bills, such as utility bills and council tax, during the DRO process. It is crucial to budget for these expenses, as they are not included in the DRO and must be paid separately.
A debt adviser can help you create a budget that accounts for your household expenses and any excluded debts to maintain financial stability during and after the DRO process.
Managing Income Tax and National Insurance Arrears in a DRO
Income tax and national insurance arrears are considered qualifying debts and can be included in a Debt Relief Order.
However, during the DRO period, you must continue paying your ongoing income tax and national insurance contributions, as the DRO does not cover these debt repayments.
To stay on track with your financial obligations, it is essential to budget for your ongoing tax and national insurance payments while adhering to the DRO restrictions.
In our experience, seeking advice from a debt adviser can help you navigate this aspect of the DRO process.