Debt Relief Order

A debt relief order may be an option if you do not own your own home, you have a low income and no assets.

The debt relief order could help you to get rid of debt if you are unable to repay it over a reasonable amount of time.

To be eligible for a debt relief order your situation must:

• owe less than £15,000 in unsecured debts, and
• not be a homeowner, and
• have no more than £300 assets, and
• have less than £50 a month income left over after you’ve paid all of your living costs

Debt relief orders only help people in severe financial difficulties who have a low income. They are a cheaper option to bankruptcy if your circumstances fit, as the cost for a debt relief order is presently £90.

If you are granted a debt relief order your debts are frozen for a period of twelve months. During this time your creditors will not to pursue you for the outstanding debt, nor add further interest to the balances. If, after twelve months have elapsed you still cannot pay the debts back at a reasonable amount each month, they are written off.