I believe that management students already know about debt relief order (DRO), but most of the students who study other fields still don’t know about this. Actually, knowing about debt relief is as important as other subjects you learn in the class, especially if you plan to build your own business.
When we build a new business or continue someone’s business, we should be ready to face both profit and loss situation. When we get a lot of profit, it means the strategy we implement run successfully. On the other hand, when we get loss continuously, we should try to overcome it soon. Moreover, we know that in business 90% of new businesses fail in their first year and I believe that although in hard situation, you don’t want to fail, right?
When the company you run is in those conditions, it means you have two options: declare bankruptcy or apply for DRO. The conditions include you cannot pay your debts and your monthly income is less than ₤ 50. If you decide to declare bankruptcy, you will need to pay more costs compared to when you apply for this debt relief.
Through applying the debt relief, all unsecured debts included in DRO will be cleared after 12 months. And, there is an association called Baines and Ernst that can help your with free service. You only need to pay one-off fee ₤ 90 to submit the application to Insolvency Service.
After this phase, you can continue to run your business again, try to implement new strategy, restructure your organization, and try to make profit from your business. We really hope that this information will be useful for all of you someday in the future. Good luck for your study and for your future!