Introduced in April 2009 debt relief orders are an option for some people looking to solve their debt problems. If you are considering filing for bankruptcy then it may be that a debt relief order is more suitable.
Debt relief orders offer a way for you to apply for personal bankruptcy without having to go through the full bankruptcy procedure. By not going through the full bankruptcy procedure it provides you with a cheaper option than bankruptcy. It is however only available to people who meet certain qualifying criteria. The order lasts for a period of up to 12 months at the end of which you will be debt free.
The qualifying criteria for debt relief orders is quite strict and so they are only suitable in certain limited circumstances. Generally to qualify you will need to meet the following criteria –
Only certain types of unsecured debts can be included in a debt relief order. Qualifying debts include –
Debts that can't be included in the DRO include student loans, child maintenance and court fines. If you have these types of debt then your creditors can still take action against you even if you have a debt relief order.
For more information about debt relief orders and all other debt solutions call us on 0800 043 50 43 or complete our enquiry form.
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Total unsecured debt : £4000