Rent Arrears and Debt Relief Order DRO
In a debt relief order DRO, unpaid rent is a qualifying debt. A DRO might be an appropriate solution if you have trouble paying rent. However, a tenancy agreement frequently specifies that due rent is cause for eviction.
A DRO can temporarily halt your debt repayments but won’t always prevent eviction proceedings. This is a crucial aspect to take into account when considering a DRO.
To fully grasp the potential ramifications of your housing situation, it is always advisable to talk this over with a debt counselling specialist.
Bankruptcy Restrictions and DRO
A bankruptcy restriction order is comparable to a debt relief restriction order. Both place the debtor under specific guidelines and limitations. For instance, you can manage a company or serve as a director with a court’s approval.
These limitations apply for the DRO period, which is ordinarily a year. However, the rules may be widened if your situation changes. The individual insolvency register is where the specifics of your DRO and any debt relief restrictions order are kept.
Lenders may access this public record, which could impact your credit history.
Minimal Assets Process vs. DRO
The minimal assets procedure, which is used in Scotland, is an alternative to a DRO. This type of bankruptcy is for those with little wealth and a low income. Both options relieve those with little left over after covering their essential living expenses but cannot pay off their debts.
Specific requirements must be met for the minimal assets process and the DRO. For instance, your assets’ combined value, including any hire purchase or conditional sale agreements, cannot exceed a certain threshold.
After paying your regular household expenses, your monthly surplus income shouldn’t exceed a certain threshold.