Will a Debt Relief Order (DRO) affect my council tenancy as I am in debt?

We receive a lot of calls and emails from the public asking; "Will a Debt Relief Order (DRO) affect my council tenancy as I am in debt.?".

A Debt Relief Order is an option for anyone who has debts under 15,000, surplus of less than 50 per month and assets totalling no more than 300 in total. If you have a vehicle it must be worth no more than 1000, based on a valuation from Parkers Guide.

The applicant should not have a mortgage or have a beneficial interest in a property, even if the house is worth less than the mortgage outstanding on it (negative equity).

It is unlikely that your Council tenancy would be affected by a Debt Relief Order, though you should check your tenancy agreement to be sure. Providing you are paying your rent as you should, everything should be OK.

If you are in arrears with your rent you could face eviction from the property. Rent arrears can be included in a Debt Relief Order.

If you are already aware of Possession proceedings against you, you should let the Intermediary who is dealing with your Debt Relief Order know. An allowance to repay those arrears can be included in your expenditure in order to prevent you losing the house.

However remember that if the arrears end within the 12 month Moratorium period of your Debt Relief Order, the monthly payment allowed in your expenditure could mean that you would have too much surplus income to meet the DRO criteria. If this happens, the Insolvency Service may revoke your Order, meaning you would be liable for the debts again.

OTHER DEBT SOLUTIONS

Debt management

• Reduce your monthly payments
• Clear your debts
• One affordable monthly payment
• Stop demands from your creditors
• No need to take out a loan
• Effects credit rating
• Fees Apply

IVA

• Write off the debt you can't afford
• No Upfront Fees to pay
• Prevent or stop legal action
• Prevents bankruptcy
• Debt free usually after 5 years
• Your credit rating will be affected

Trust Deed for Scottish Debts

• Write off all the debt you can't afford to repay
• No Upfront Fees to pay
• Prevent or stop legal action
• Prevent bankruptcy
• Lasts 3 years in most cases
• Credit rating will be affected

If you would like more information please contact us Money Advice Direct on  0800 074 6918 or fill in our form by clicking here. If you are unsure as to whether an Debt Relief Order is the best way to solve your debt problems please call us on 0800 074 6918. If you wish to discuss the Debt Relief Order procedure and understand how it can help you please complete the following form or telephone freephone 0800 074 6918.

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Listed below are some of the frequently asked questions relating to Debt Relief Orders

• Introduction to Debt Relief Orders
• What is a Debt Relief Order?
• What debts can be included in a Debt Relief Order?
• What debts are excluded from a DebtRelief Order?
• Is my Hire Purchase affected by a Debt Relief Order?
• Is my Motability Car Scheme affected by a Debt Relief Order?
• Who can apply for a Debt Relief Order?
• What is a Competent Authority?
• What is an Approved Intermediary?
• What is the cost of a Debt Relief Order?
• Why should I consider a Debt Relief Order rather than Bankruptcy?
• How do I apply for a Debt Relief Order?
• Who decides if my Debt Relief Order is approved?
• What if my circumstances change whilst I am in a Debt Relief Order?
• How will my creditors know I am in a Debt Relief Order?
• What happens to interest and charges if I am in a Debt Relief Order?
• Rent Arrears and Debt Relief Order's
• Will I be allowed a reasonable standard of living?
• Debt Relief Order Case Study 1
• Debt Relief Order Case Study 2
• Debts incurred after the granting of a Debt Relief Order
• What are the restrictions of a Debt Relief Order?
• What happens if you are dishonest before or during a Debt Relief Order?
• How will a Debt Relief Order affect you?
• What debts are not covered by a Debt Relief Order?
• Will a Debt Relief Order (DRO) affect my council tenancy as I am in debt?
• Can I apply to the Police if I have a Debt Relief Order (DRO)?
• Does getting a job after getting a Debt Relief Order (DRO) affect me, because I am seriously in debt?