In order to start a Debt Relief Order (DRO) you will need to use an authorised debt councillor. Once they have agreed to proceed with your application you will need to pay a one off fee of £90. This fee is to cover both the fees charged by the debt councillor and the Official Receiver. Normally the fee can be paid at the Post Office either in cash or with a Debit Card.
Will I have to pay towards my debts during my DRO?
There will be no requirement for you to make any payments towards your debts once your DRO has started. In order to meet the criteria to be able to start a DRO your disposable income must be less than £50 a month so it is accepted that you cannot afford to make any payments to your creditors.
BMD Tip: If your financial situation improves and your disposable income increases above £50 a month while you are in a DRO the agreement is likely to fail and you will be responsible for paying your debts again.
What happens if I receive a windfall during my DMP?
If you receive any type of windfall during your DRO you must inform the Official Receiver (OR) who is responsible for managing your case. If the amount you have received is lower than your total debt the OR is likely to take the money from you and use it to repay some of your debt. However it is unlikely that your DRO will fail.
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