'Debt relief orders' are a new debt solution for people struggling with debts less than £15,000 in total.
Very few people will qualify for a debt relief order because they're only available to people who have a disposable income less than £50 per month. People who own any assets, i.e. house, car, property, computer, etc. that are worth more than £300 cannot use a debt relief order.
If you're unsure whether a debt relief order is for you, please call us on:
0800 1300311
Debt Relief Order
Who might debt relief orders be suitable for?
Individuals with relatively low liabilities, small surplus income and few or no assets and who are possibly not in a position to pay off their debts in a reasonable time.
The proposed criteria will be:
The debtor’s total gross assets must not exceed £300; assets incl. car, etc.
The debtor’s disposable income, following deduction of normal household expenses, must not exceed £50 per month.
The debtor is unable to pay his/her debts.
The debtor’s total unsecured liabilities must not be more than £15,000.
The debtor must be live in England or Wales, or in the last 3 years have been resident or carrying on business in England or Wales.
The debtor must not have previously been subject to a debt relief order within the last 6 years.
The debtor must not be involved in another formal insolvency procedure at the time of application for a DRO, such as:
An undischarged bankrupt.
A current individual voluntary arrangement.
A current bankruptcy restrictions order or undertaking.
A current debt relief restrictions order or undertaking.
An interim order.
A current pending debtor’s bankruptcy petition in relation to the debtor but the debtor has not been referred to the DRO procedure by the court as a more suitable method of debt relief.
A current pending creditor’s bankruptcy petition against the debtor but the debtor has not obtained the creditor’s permission for entry into the DRO process.
