Is a DRO right for me?
Entering into a DRO may have consequences. These include:
- A detrimental effect on your credit score for up to six years following registration of the DRO.
- During the DRO you will still need to pay any essential bills such as council tax, mortgage/rent and utilities that aren’t included.
- You are obliged to notify potential lenders you have a DRO when applying for credit above £500. Any future credit you apply for may be at a less competitive rate.
- If you have a DRO there maybe restrictions on managing a company.
- The DRO can be revoked if you don’t meet your obligations during it or your circumstances improve.
- If your debt level increases above £20,000 the DRO may be revoked.
- Details of a DRO are publicly available on the Register of Insolvencies.
- DROs are not available in Scotland.