Can a Debt Relief Order Stop Bailiffs? All You Need to Know
Understanding the impact of a Debt Relief Order on bailiff actions can help individuals in the UK make informed decisions about their financial situations. Explore the information below to gain clarity on the subject.
What is a Debt Relief Order (DRO)?
Definition: A DRO is a form of debt relief available in the UK, suitable for those with minimal assets and low surplus income. Eligibility: Understand the criteria, such as having debts under £50,000 and a disposable income of less than £75 per month. Duration: A DRO typically lasts for a year, during which creditors can't take action to recover their money.
How Can a DRO Impact Bailiffs?
Immediate Effect: Once a DRO is approved, it immediately halts most forms of creditor action, including the use of bailiffs. Protection Duration: During the 12-month duration of a DRO, bailiffs cannot take any action against you for the debts listed in the DRO. Debts Not Included: Some debts, like court fines, are not covered by a DRO, meaning bailiffs can still act on them.
The Aftermath: Post-DRO Scenario
Debt Write-off: Upon successful completion of the DRO period, most of the debts included will be written off. Credit Implications: A DRO impacts your credit rating for six years and the implications for future borrowing. Potential for Bailiff Action: Bailiffs might still come into play, especially for new debts or those not covered by the DRO.
Alternative Debt Solutions
Individual Voluntary Arrangements (IVA): A formal agreement to pay creditors back over time. Bankruptcy: A last-resort option when debts are overwhelming. Debt Management Plans: An informal agreement with creditors to repay debts over an extended period.
Seeking Expert Advice
If you’re looking to seek expert advice, look no further than Bailiff Advice who can help you today.
To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
*Our advice on your options is ALWAYS FREE. We will always notify you if a solution you choose has any cost.
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Bailiff Advice is a trading style of My Debt Plan Ltd.
Registered address 2nd Floor Blenheim Court, Cheadle, Cheshire, England, SK8 2JY Company Registered in England and Wales Number 10992838 Data Protection ZB284067.
My Debt Plan Ltd provides insolvency solutions to individuals, specialising in IVA’s. All advice given is provided in reasonable contemplation of an insolvency appointment. Where you are not suitable for an IVA, we may refer you to one of our trusted partners who specialise on alternative solutions.
You will be contacted by Bailiff Advice.
Lucy Novo Deakin and Adam Southard are insolvency practitioners in the UK licensed by the Insolvency Practitioners Association (IPA).
