Dealing with rent arrears can be a stressful and overwhelming experience for many individuals Falling behind on rent payments can have serious consequences, including the risk of eviction and damage to your credit score However, if you are struggling to keep up with your rent payments, there are options available to help you get back on track One such option is a Debt Relief Order (DRO).
A Debt Relief Order is a form of insolvency that can help individuals who are struggling with debt to write off their debts and make a fresh start It is a legal agreement between you and your creditors that allows you to repay your debts over a specified period of time, usually 12 months During this time, your creditors will not be able to take any further action against you to recover the debts included in the DRO.
So how can a Debt Relief Order help with rent arrears? If you are behind on your rent payments and facing the threat of eviction, a DRO can provide you with the relief you need to get back on track By including your rent arrears in the DRO, you will no longer be responsible for repaying that debt, allowing you to focus on meeting your current and future rent obligations.
It’s important to note that not all debts can be included in a DRO Debts that cannot be included in a DRO include student loans, court fines, child support payments, and secured debts such as mortgages However, most unsecured debts, including credit card debts, payday loans, and utility bills, can be included in a DRO.
To qualify for a Debt Relief Order, you must meet certain criteria You must have total qualifying debts of less than £30,000, assets worth less than £2,000, and a monthly surplus income of less than £75 dro and rent arrears. You must also be a resident of England, Wales, or Northern Ireland, and have not had a DRO within the past six years.
Once you have met the eligibility criteria and your DRO has been approved, you will be granted a moratorium period during which your creditors will not be able to take any action against you to recover the debts included in the DRO This will give you the breathing space you need to focus on repaying your rent arrears and getting back on track with your rent payments.
It’s important to remember that a Debt Relief Order is a formal insolvency procedure and will have long-term implications for your credit rating Your DRO will be recorded on the Insolvency Register and will remain on your credit file for six years During this time, it may be difficult for you to access credit or take out a loan However, for many individuals struggling with debt, the benefits of a DRO far outweigh the drawbacks.
If you are struggling with rent arrears and considering a Debt Relief Order, it’s important to seek advice from a debt advisor or insolvency practitioner They will be able to assess your financial situation and help you determine whether a DRO is the right option for you They can also help you through the application process and provide ongoing support and guidance throughout the moratorium period.
In conclusion, if you are struggling with rent arrears and facing the threat of eviction, a Debt Relief Order could be the solution you need to get back on track By including your rent arrears in the DRO, you will no longer be responsible for repaying that debt, allowing you to focus on meeting your current and future rent obligations If you think a DRO might be right for you, seek advice from a debt advisor or insolvency practitioner to discuss your options and get the help you need.