Debt Relief Orders - Best Debt Relief Order Information

What is a Debt Relief Order?

A Debt Relief Order is a debt relief solution run by the insolvency service. A DRO (Debt Relief Order) is Suitable for people who do not own their home, have little surplus income and less than £15,000 debt. A Debt Relief Order will only last for 12 months, during this period creditors cannot hassle you for the debt. Once you have completed a Debt Relief Order the creditors have to clear the debt leaving you debt free.

Who is eligable for a Debt Relief Order?

To be eligable for a Debt Relief Order you must meet the following criteria:

• You must be unable to pay your debts
• Have a total debt amount under £15,000
• Have no assets over the value of £300
• Your disposable income (income minus your expenditure) must not be over £50 per month.
• Must not have had a Debt Relief Order in the last 6 years.
• Not entered into bankruptcy, IVA or Interim Order at time of the Debt Relief Order

What are the restrictions of a Debt Relief Order?

A debt relief order is similar to bankruptcy, hence the comparison and the nick name mini bankruptcy. The restrictions are quite similar to that of bankruptcy. The Restrictions Of A DRO are:

• You must not obtain credit over £500 without disclosing to the company you are in a DRO.
• Must not trade in a different name to that which you were trading as when the DRO was granted.
• Cannot act as a Limited Company Director.
• Can only obtain one DRO every 6 years.

How can I apply for a Debt Relief Order?

A Debt Relief Order is applied for online by an approved intermediary. You will need to pay a fee to the official receiver to process the Debt Relief Order as long as your application meets the requirements.

If you need more information about debt relief orders give our bankruptcy experts a call on 08001303007 alternatively click on the banner below and one of our bankruptcy experts will give you a call.

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