Debt Relief Order UK
A government debt relief order application is a process that is used in the UK as an alternative to bankruptcy and to allow a person to clear their debts. It only applies in England and Wales as there is a separate equivalent in Scotland. If you think this process will help in your situation, you will need to fill in a debt relief order application form along with your income and expenditure details.
How does a Debt Relief Order work ?
A debt relief order application is a scheme initiated and overseen by the government. Only approved debt relief agencies can participate in the scheme. Before applying you need to find out if you meet the necessary criteria
Debt Relief Order Criteria
Things which may disqualify you – debts over £15,000, pension, investments, previous bankruptcy, IVA application. Also, if you have substantial assets such as a house or car etc, you will probably not be able to meet the criteria, uless it is something you need for your work
If you are unsure whether you can apply or not, you should talk all your options and questions over with an approved debt adviser working within the government scheme, or with your local Citizen’s Advice Bureau. Alternatively there is a list of approved services available on the Insolvency Services website.
How do you get a Debt Relief Order application form ?
You can’t just send for a government debt relief order application form to be posted out to you. It may also be possible for you to download a pdf form also. What you need to do is contact one of the approved debt agencies taking part in the scheme. They will assess whether you meet the criteria and you ability to meet payments and will fill out the form with you. It is significantly cheaper to set up than bankruptcy and payments from your bank account can be spread out over several months if necessary.
How long does a debt relief order last and does it affect my credit rating ?
It normally lasts for 1 year during which time all calls from creditors will be halted and existing debt will be cleared. This does not apply to student loans to which you must keep up your payments.