Debt Relief Order information
How does a debt relief order work? Well, to meet debt relief order criteria there are certain conditions attached. A debt relief order is a process by which a person can be free of their debt without going through the process of bankruptcy. However it should be pointed out that a debt relief order can still affect a person’s credit rating. If you think you meet the debt relief order criteria and you wish to apply, you will need to contact a government approved debt relief order intermediary. They will help with advice and will guide you in filling out the application form. If you are considering a debt relief order and you have rent arrears, it is worth seeking professional advice on how this debt would be effected.
How does a person meet Debt Relief Order criteria ?
There are several rules that may determine whether you meet the debt relief order criteria or not
1) Total debts are less than £15,000.
2) You have not previously been granted an IVA
3) You have not previously been declared bankrupt
4) You have not already been granted a debt relief order in the last 6 years
5) You do not own your own house
6) You do not own your own car (company cars excluded or vehicles essential for your work)
7) You do not have a private pension which can be cashed in
8) You do not have substantial investments
If you are unsure about whether you can apply or not, you should always seek advice from an approved debt relief order intermediary.
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