How to apply for a Debt relief order
A debt relief orderis applied for when consumer can’t afford their debts. The insolvency service in the UK grants them, and is a cheaper option than filing for bankruptcy. To file for a debt relief order individuals must have debts less than £15,000 and low income. The order typically lasts one year, and during that time no creditors will be able to take actions against an individual to get payments. At the year’s end individuals will be free of all debts listed in the order.
An individual cannot apply for a debt relief order if they own things of value or have savings of more than £300, or if they own a vehicle worth more than £1000. To apply for the debt relief order, one must contact an authorized adviser who will check whether the individual is eligible and meets the conditions, and the adviser will then apply on that individual’s behalf. The debt relief order costs £90 which can be paid in installments over six months.
An individual can only apply for the order if certain conditions are met. They must: have qualifying debts of less than £15,000 (the debts must be of a certain type); they must have spare available income of £50 or less a month after paying normal household expenses; the assets owned by the individual and any savings they have must be less than £300 (unless they own a vehicle, but it must be worth less than £1,000), or unless the individual has been specially adapted due to a physical disability; lastly, they must have lived in or carried a business on in England or Wales for the past three years.
Debts which can be included are credit card, overdrafts, loans, rent, utilities, phone, council taxes, and other qualified debts. To apply one will go through an adviser who will see if that individual is eligible, and if so, will apply on their behalf. Consumers have other options than a debt relief order when dealing with their debts, if they are not eligible to obtain the debt relief order; but if eligible it is a great option for consumers to get their finances back in order over the course of that year’s time.
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