What is a debt relief order?

A debt relief order (DRO) is a legal document issued by the Washington State Department of Financial Institutions that helps a consumer who is unable to pay their debt. The DRO is a unique form of debt relief that allows a consumer to avoid bankruptcy and get the help they need. A DRO stops creditors from trying to collect a debt. They also can stop interest and fees on the debt and help reduce the amount a consumer has to pay in the long run. It’s important to note, though, that a DRO does not erase or eliminate a consumer’s debt, but instead pauses the collection attempts and interest accrual. This can give a consumer some breathing room while they try to get back on track financially. A consumer filing a DRO must meet certain eligibility requirements, including having total debts of $5,000 or less, not owning any real property, and having income that is below the median income for Washington. If approved, the consumer can have the debt in question partially or completely wiped out. If you think a DRO might be the right debt relief option for you, it’s important to check with a qualified attorney to make sure you meet all the requirements and understand the process. With the right help and guidance, a DRO can be a great way to get debt relief and get back on the right financial track.

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What is a debt relief order?

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