What is a debt relief order
A debt relief order is an order you can apply for if you can't afford to pay off your debts. It's granted by the Insolvency Service and is a cheaper option than going bankrupt.
You must have debts of less than £15,000 and a low income.
A debt relief order usually lasts for a year and during that time, none of the people you owe money to (your creditors) will be able to take action aginst you to get their money back. At the end of the year, you'll be free of all the debts listed in the order.
You can't apply for a debt relief order if you:
•own things of value or have savings of over £300
•own a vehicle worth more than £1,000
•have a private pension fund worth over £300.
To apply for a DRO, you'll need to contact an authorised adviser who checks whether you meet the conditions and then applies for the order on your behalf. The order will cost you £90 but you can pay this in instalments over six months.
You may have other options for dealing with your debts besides applying for a debt relief order. For more information about these options, see Help with debt.
On the following pages, we will explain in more detail:
•what a debt relief order is
•who can apply for a debt relief order, including the conditions you need to meet
•who can't apply for a debt relief order
•what type of debts can be included in a debt relief order and which can't
•how to apply for a debt relief order
•what happens during a debt relief order, including what to do about your creditors
•things you should do during a debt relief order and things you won't be able to do
•what happens after a debt relief order finishes, including what happens to your debts.
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