Are you residing at United Kingdom and your debts have become unmanageable. There are several formal like DRO, IVA, trust deeds, debt arrangements scheme and bankruptcy as well as informal options like debt management, debt consolidation etc. are available to solve debt problems. No need to worry anymore. If it is not too late then you can go for either of these options to clear your payments depending upon your financial statements, lenders and repayment ability.
However, before considering any of these options it is quite important to examine associated facts and figures of the option to ensure whether it is become successful option for you or not. Here, you will get information on debt relief order and debts that can be dealt using this repayment option.
DRO can deal only with certain type of debts. Qualifying debts in DRO are:
- Credit card bills, loans and overdrafts
- Telephone, council tax, utilities and rent
- Overpayment benefits unless it was obtained by fraud
- Conditional sale agreements or hire purchase
- Buying Agreements like buy now- pay later
Debt relief order deal with all these unpaid payments but at certain recommendations. If you have bought any commodity on a conditional agreement then you will have to return that commodity. However, someone else get agree to pay the installments then consumer may keep that with him. Once you signed for DRO process then you will not be able to pay installment of that product.
DRO does not deal with all type of consolidation loans. It is necessary for you to pay off some loan separately. People associated with that debts may take legal actions against you if you do not pay the amount. These debts are:
- Confiscation orders and court fines i.e. the fines related to criminal activities
- Student loans
- Social fund loans
- Child support and maintenance
Keep these things in your mind while applying for DRO process. These things will help to manage your budget and payments.
