There are many different types of debt solutions available these days for people that are struggling to keep up with their repayments on debts but do not want to bury their heads in the sand and pretend that there is not a problem. Some of the options that are available for those that have debts that they are struggling to repay include Individual Voluntary Arrangements and Debt Management Plans. Another, more recent, option that has become available is DROs or Debt Relief Orders.

Debt Relief Orders are a debt relief option for people that meet specific eligibility requirements and they come with both pros and cons. In order to be eligible for a Debt Relief Order you need to have debts of no more than £15,000, you must have no more than £50 disposable income after all bills and living costs have been paid out, you must own assets worth no more than £300, and your car must not be worth more than £1000.

With Debt Relief Orders the orders last for twelve months, during which time your creditors cannot chase or pursue the debt or take any action without court permission. You do not make any monthly payments over that twelve month period and once the period is over your debts are written off leaving you free to start afresh with your finances.

There are some pros and cons to consider when you are looking at Debt Relief Orders. Some of the pros include being able to have your debts discharged after twelve months, not having to make any payments for the twelve month DRO period, and being able to start afresh after the twelve month period. On the downside you cannot be a homeowner because it would be classed as an asset, you cannot have a pension pot because that would be seen as an asset, you have to meet the strict criteria, and you would sustain damage to your credit.

If you believe that a Debt Relief Order might be the right solution for your debt problems it is advisable to speak to a debt expert about it. You can contact a debt charity in order to learn more about DROs and find out whether you would be eligible. However, even if you are not eligible or suitable for a DRO there are other debt relief options that a qualified and experience debt advice officer can discuss with you.