Debt Relief Order Pros & Cons

Pros

  • There is no court appearance and the procedure is relatively painless.
  • Most debts can be included within the DRO, including rent arrears, fuel debt and Council Tax.
  • Creditors’ can take no further action against you once the DRO has been made.

Cons

  • If you are a home owner, and have equity in the property you will not be eligible as this is likely to exceed the asset limit.
  • Any secured creditors’ can still take action against you.
  • Not all debts can be written off by a DRO. You cannot include court fines, student loans, maintenance and CSA payments.
  • Details of your DRO will be kept on the Individual Insolvency Register.
  • Your credit rating will be affected.
  • You may have a ‘debt restriction order’ made against you for dishonesty or ‘unfit conduct’ if the circumstances merit this.