The current economic climate has been disastrous for many citizens of the United Kingdom. In fact, more people than ever are having to resort to bankruptcy because they are unable to repay their debts. Given this overwhelming and disheartening statistic, the British government has created a new form of bankruptcy which is known as a debt relief order.
The overall bankruptcy process has been rather lengthy and complicated for many years. The government made the process much more efficient for those who qualify due to small debt loads or small asset amounts. A debt relief order usually lasts for one year. During this time, creditors cannot take actions to obtain their money from you. At the conclusion of the year, all of the debts listed in the order will be absolved.
Some qualifications must be met in order to qualify for a debt relief order. For one, the person must be a citizen of the United Kingdom with appropriate documentation. Also, a requirement must be met regarding the amount of their assets. These assets cannot exceed a value of 300 pounds. Among these assets, a house may not be included. However, one may own a vehicle which is not included in this 300 pound limit. However, the vehicle’s value cannot go over 1000 pounds.
In order to obtain a debt relief order, a qualifying individual also has to meet requirements in regards to their income. After paying all of the regular expense of any household, they must have a remaining income of less than 50 pounds. Of course, in order to prove this, appropriate documentation must be provided.
To obtain a debt relief order, it must be shown that the person is unable to repay the debt. The total amount of debt cannot exceed 15,000 pounds. If the total debt exceeds this amount, then the person cannot qualify for a debt relief order. The individual also may not have any other resolution to their debt currently in force including such things as trust deeds and individual voluntary arrangements. Additionally, a debt relief order may not have been taken out in the last six years. There are plenty of sites on which you can find more information and even apply for debt relief order.