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Can I work part time or full time and apply for a DRO?

Posted 04 March 2013

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If you know you couldn't repay your unsecured debts, you could still qualify for a DRO if you work part time or full time.

If you're considering a Debt Relief Order, or DRO, you're probably very concerned about your unsecured debts and don't know how you could ever afford to repay them.

Well, the truth is you could still qualify for a DRO even if you work part time, or full time. One of the qualifying criteria is that you must have a disposable income of less than £50 every month. This could still be the case even if you work, because you could have many overheads, like childcare or essential travel.

If a DRO is the best solution for you, then it won't matter whether you have a job or not. Speak to a debt adviser about your options, because a DRO is just one of many debt solutions that could help, depending on your situation.

Staying in work on a DRO

Sometimes people worry that they'd have to give up working to qualify for a DRO, because your disposable income must be less than £50 every month.

We certainly would not recommend leaving or turning down work in the hope of qualifying for a DRO. Working has all kinds of benefits, like the social aspects, improvements to self-esteem and mental health and the stability it provides, and you could still qualify for this kind of debt help if you meet the criteria - even if you are working.

Qualifying for a DRO

A DRO is an alternative to bankruptcy for people who genuinely cannot afford their unsecured debt repayments anymore. Even if they paid less every month, it would still take more than a reasonable amount of time to repay everything they owe.

A DRO could help if you have:

•  A monthly disposable income of less than £50.

•  Unsecured debts up to the value of £15,000.

•  Assets totalling no more than £300, apart from your car which can be up to the value of £1,000.

•  No history of another DRO in the last six years.

Not started any other insolvency proceedings.

by Shelley Bowers

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