Debts have a negative impact on so many aspects of one’s life. There are different ways that you can reduce debts, but getting the right information might be the limiting factor. You might have heard of a Debt Relief Order and wonder, what is a Debt Relief Order (DRO)?
Apart from other solutions such as bankruptcy, debt settlement or credit counseling, a debt relief order is one of the solutions that relieve you or someone that is in debt the responsibility of paying the debt. However, aside from the other three, a debt relief order is for people with no assets that can be used to pay back the debt.
Below are the facts that you need to know before receiving any debt relief order services.
Forms of debt relief differ from person to person
Different forms of debt relief are offered depending on various factors. The factors taken into consideration before the issuance of a form include the total amount of debt that you owe, your income and monthly financial commitments. Your debt relief might be different from another person’s so you need to carry out some research about what you are eligible for.
If you don’t earn enough to pay all of your debts, then bankruptcy might be your solution. If you can pay your debts but have a substantial number of them, perhaps debt consolidation might suit you.
Getting debt relief is not a fast process
Just like the other solutions such as debt consolidation, bankruptcy or paying using your own money, debt relief also follows a process. Debt relief will take around 12 months to process before you are finally regarded as debt free. However, unlike the case of bankruptcy, you do not have to attend court sessions with a DRO but there are rules to be followed that you must adhere to such as a fine.
No form of debt relief is easy
Whether you want to go for bankruptcy, debt consolidation or a debt relief order, none of them is simple. A debt relief order requires patience due to the length of time that the process takes. Nonadherence to the set rules is a must lest you find yourself going to prison for it. Follow the right process and the rules to make it less stressful.
Bankruptcy is not a 100% option
Different companies have bankruptcy attorneys who will guide you in making the choices that will be ideal depending on your case. But this does not mean that they will clear all your debts. Using bankruptcy as your debt relief solution might still include tax and alimony debts among other debts not obtained in the right way.
Debt relief service is not free
You might be in debt and thinking that getting a debt relief order will save you. Apart from credit counseling which is the only free form of debt relief, all the others are not free. With some businesses and debt relief companies claiming that they offer debt relief for free even when that’s not true, you might find yourself in deeper debts. The different debt relief methods and companies offering the services charge.
Your debts can be greatly reduced when you seek services from the right debt relief company. Find a company that is legit and with good reviews.