Debt Relief Orders/Bankruptcy

[suzanne100268]

I am in an IVA for 6 years, but a friend of mine read somewhere that the government are introducing a debt relief order for people who cannot afford to go bankrupt and only have £10k of debt and little or no assets and no income.

Can any of the experts advise on whether this is right this because this would suit my brother?

[Viki.W]

Hey Suzanne, I've just googled it and it looks like it's aimed at people who have less than £50 disposable income, maybe only getting benefits. I'm sure one of the technical experts will know all about them. What situation is your brother in? X

[suzanne100268]

He's got about £10k on a loan and cards, he lives in rented with his wife. He got ill about a year ago and hasn't worked. Some of his creditors have been understanding but others want their pound of flesh!

[Viki.W]

I think Paul is on the forum at the moment, I think he will be able to answer this for you, hang in there. X

[Reviva UK]

Hi suzanne

from the info at hand the debt relief order would certainly seem to suit your brother.

as they are not available yet - and it could be some time until they are so it may be wise to try a VERY MINIMUM dmp until then.

If however it is a year until they are effectively available your brother may want to look at the alternative that could be finished by then.

I will try to find out a ballpark date for these and get back to you

[MelanieGiles]

You need to demonstrate disposable income of less than £50, assets of less than £300 and creditors of less than £15,000 - and an application is made to the Official Receiver for the Order rather than the Court. It is anticipated that these will be introduced in April 2009.