How much does a DRO cost?
There is a fee of £90 but this can be paid by instalments over 6 months.
What if I have any hire purchase agreements?
If you have a hire purchase agreement you may have to return the goods bought with these loans, unless someone else can pay the instalments. You will not be able to carry on paying for the goods once you have a DRO.
What are my assets?
You can have assets worth up to £300 and still qualify for a DRO. The following are not included as assets;
- Household belongings such as bedding, clothing, furniture, television, other electrical goods and cutlery.
- Tools, books and other items of equipment that you need for your job or business.
- A car worth less than £1000.
What restrictions will be placed on me?
The main restrictions are;
- You must not take credit of £500 or more without disclosing to the lender that you are subject to a DRO.
- You cannot run a business in a different name without disclosing the name used under the DRO.
- You cannot be involved with the promotion, management or formation of a limited company, or become a director without getting permission of the court.
- You may not hold certain public offices.
- You can not apply for another DRO within 6 years.
What about my bank account?
If the bank that you maintain your current account with is a creditor you will need to open another 'basic' account with an unrelated bank. You should set about this without delay and transfer all of your direct debits to the new account together with your wages or salary if this is paid directly into your bank account. If you have an overdraft or loan with your present bank it is likely that your account will be frozen when they become aware of your financial position.
How will a DRO affect my credit rating?
Credit rating agencies keep information on DROs for 6 years.
How long do the DRO restrictions last?
Unless a further order is made extending the period of your DRO, this will be for 12 months.