If you find yourself struggling to keep up with rent payments and are facing rent arrears, you may be considering a Debt Relief Order (DRO) as a possible solution A DRO is a form of insolvency that can help you deal with your debts if you have a relatively low level of debt, few assets, and little surplus income However, when it comes to rent arrears, there are specific factors you need to consider before choosing this path.
What is a Debt Relief Order (DRO)?
A Debt Relief Order is a formal insolvency process that can help you deal with your debts if you owe less than £30,000, have little to no assets, and have a disposable income of less than £75 per month It freezes your debts for 12 months, after which they are usually written off This can provide you with a fresh start and help you get back on your feet financially.
How does a DRO affect rent arrears?
When it comes to rent arrears, a DRO can provide temporary relief by freezing any action your landlord may take against you for non-payment of rent This means your landlord cannot apply for a possession order or take you to court for the rent arrears during the 12-month period of the DRO However, it’s important to note that your landlord can still take action to evict you if you are in rent arrears, regardless of the DRO.
It’s also important to consider that your rent arrears will not be included in the DRO itself This means that once the DRO period ends, you will still be responsible for paying off the rent arrears It’s crucial to have a plan in place to address the rent arrears once the DRO is completed to avoid any further legal action from your landlord.
Tips for dealing with rent arrears during a DRO:
1 Communicate with your landlord: It’s essential to keep an open line of communication with your landlord throughout the DRO process Inform them about your financial situation and your plan to address the rent arrears dro rent arrears. Be transparent and proactive in finding a solution that works for both parties.
2 Seek financial advice: Consider seeking advice from a debt charity or a financial advisor to help you manage your rent arrears during the DRO They can provide you with guidance on budgeting, negotiating with your landlord, and finding additional sources of income to pay off the arrears.
3 Prioritize your rent payments: Make paying your rent a top priority during the DRO period Ensure that you allocate a portion of your disposable income to cover the rent arrears and prevent them from accumulating further This will demonstrate your commitment to resolving the issue and maintaining a good relationship with your landlord.
4 Explore other options: While a DRO can provide temporary relief, it’s essential to explore other options for addressing your rent arrears in the long run Consider negotiating a repayment plan with your landlord, applying for housing benefits, or seeking additional financial assistance to help you clear the arrears once the DRO period ends.
In conclusion, dealing with rent arrears during a Debt Relief Order requires careful consideration and planning While a DRO can provide temporary relief by freezing any legal action from your landlord, it’s essential to have a strategy in place to address the arrears once the DRO period ends By communicating with your landlord, seeking financial advice, prioritizing your rent payments, and exploring other options, you can effectively manage your rent arrears and work towards a financial fresh start.