A Debt Relief Order (DRO) grants a moratorium on debts owed to creditors listed in the order. How long does this moratorium last?

Study for the Certificate in Mortgage Advice and Practice (CeMAP) 2 Exam. Prepare with flashcards and multiple choice questions, complete with hints and explanations. Be well-equipped for your mortgage advice assessment!

Multiple Choice

A Debt Relief Order (DRO) grants a moratorium on debts owed to creditors listed in the order. How long does this moratorium last?

Explanation:
A Debt Relief Order gives you a 12-month breathing space, a moratorium, during which creditors listed in the order must stop taking action on the included debts. This period protects you and can stop interest and charges from accruing on those unsecured debts, giving you time to get things in order. The moratorium lasts twelve months from the date the order is made. After that year, if you’ve complied with the DRO, you’re discharged from the debts included in it. Remember, some debts aren’t covered by a DRO—such as secured debts, court fines, and student loans—so those may still be dealt with separately.

A Debt Relief Order gives you a 12-month breathing space, a moratorium, during which creditors listed in the order must stop taking action on the included debts. This period protects you and can stop interest and charges from accruing on those unsecured debts, giving you time to get things in order. The moratorium lasts twelve months from the date the order is made. After that year, if you’ve complied with the DRO, you’re discharged from the debts included in it. Remember, some debts aren’t covered by a DRO—such as secured debts, court fines, and student loans—so those may still be dealt with separately.

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