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Debt Relief Order

Debt Arrangement Scheme

Debt Relief Order

A Debt Relief Order is a formal debt solution for individuals with low disposable income and minimal assets. A DRO is used as an alternative to bankruptcy. This solution is aimed at people on a low income and therefore it…

Debt Relief Order JT Maxwell

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Debt Relief Order

A Debt Relief Order (DRO) is a formal debt solution for individuals with low disposable income and minimal assets. A DRO is used as an alternative to bankruptcy. This solution is aimed at people on a low income and therefore it costs less than bankruptcy. The application fee is £90 and can be paid in instalments.

Criteria

  • If you live in England or Wales you may be eligible if you owe less than £30,000 (£20,000 in Northern Ireland)  have less than £2,000 in assets (and a car worth no more than £2,000).
  • If you live in Northern Ireland you may be eligible if you owe less than £20,000 and have less than £300 in assets (and a car worth no more than £1,000).
  • You must have £75 or less left over at the end of every month (surplus income).
  • You can only apply for a DRO if you live in England, Wales or Northern Ireland.
  • Must not be involved in any other formal insolvency procedure.
  • Be able to afford the £90 application fee.
  • Do not own a home

Debt Relief Order Advantages

  • If your position remains unchanged, your debts will be cleared in 12 months.
  • Low application fee of £90.
  • Creditor calls/correspondence stopped once the order is accepted.

 

Debt Relief Order Disadvantages

  • Only able to obtain a DRO once every 6 years.
  • You are unable to apply if you are a homeowner.
  • The DRO will appear on a public register for 12 months.
  • The DRO will adversely affect your credit rating for 6 years.
  • Your assets need to be worth less than £2,000

 

Contact Us

Address

JT Maxwell Limited, Unit 1, Lagan House, 1 Sackville Street, Lisburn, BT27 4AB.

Telephone

Call free on 0800 0465 029

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Still Have Questions?

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F.A.Q.

How long does negative information remain on a credit report?

Most negative information (like late payments) remains on your credit report for six years. Some information remains longer.

A lawsuit or unpaid judgment against you stays on your report until the statute of limitations runs out or for seven years, whichever period is longer.

A bankruptcy filing stays on the report for 6 years, and a criminal conviction may stay there permanently.

Why would my creditors accept an IVA?

In accepting an IVA, your creditors will expect to get a better return than they would from any other reasonable alternative, and your payment proposals will demonstrate this to be the case. Your creditors will also benefit from knowing your IVA will be managed, monitored and supported by your Supervisor during the term of your IVA.

What to do if you’ve been made redundant and in debt

No matter your situation, if you are struggling to make repayments or find yourself in problem debt and are at risk of redundancy then it can be very scary.

When you contact us, one of our specialists will go through the money that you have coming in and going out (household budget) and then prioritise what you need to pay for. Based on how much money you have leftover each month, and whether you think your circumstances are likely to change, there will be a number of options available to you. Our Specialist  will talk to you about each of the available debt options in detail, and how each option will affect your own personal circumstances which will help you decide which is right option for you.

Can I protect my house?

An IVA will protect your home and prevents creditors from taking any legal action against you and your property.  You do not have to sell your home in an IVA.   

About Us

Our aim here at JT Maxwell is to help change the perception of our industry. And the reason for this is simple: we passionately believe that the service which we provide is incredibly valuable, not just for businesses, but also in a personal context.

Address

JT Maxwell Limited, Unit 1 Lagan House, 1 Sackville Street, Lisburn, BT27 4AB.

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