Is a Debt Relief Order Suitable for You?
If you can't afford bankruptcy and don't qualify for an Individual Voluntary Arrangement (IVA) or Debt Management Plan (DMP) then a Debt Relief Order (DRO) could be more suitable for you.
Limited Debt Levels and Disposable Income
In order to be eligible for a Debt Relief Order your debts cannot exceed £15,000 and your spare available income at the end of the month must be no more than £50, this is after taking into account normal household expenses.
Limited Assets
The courts also take into account your assets. If you have savings over £300 or own anything worth more than this, then you won't be allowed to apply for a DRO. This includes property, so if you're a home owner then a Debt Relief Order isn't for you. Similarly, if you own a car which is worth more than £1,000 then you will also not be eligible.
As you can see a Debt Relief Order is aimed at people with little-to-no income who are struggling to get by even before they have accrued debt. If you are struggling to make ends meet then a DRO could be ideal for you, it should be noted however, that if you are currently pursuing an alternative debt management solution then this may affect your application for a DRO.
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