Often people do not have enough money to repay their debts and that is why, their debts keep on increasing due to late charges or interest rates or both. When you are facing such situations, it is important to consider options such as a Debt Relief Order or DRO. A debt relief order can help you write off most of your debts, but there are certain requirements that you must meet in order to benefit from a debt relief order. Following are some of the basic requirements that you must meet in order to avail a DRO in the UK. • Owe less than 15,000 pounds in debts.
• You should have less than 50 pounds in savings every month, after paying for all of your essential expenses such as food and rent.
• Your net assets worth should be less than 300 pounds. If you have a car, its value should be less than 1000 pounds or you can keep it in case you are disabled and need it to get around. • If you are looking to apply for DRO, then make sure that you have not applied for it in the past 6 years. • You should be a resident of the UK or Wales for the past 3 years. One of the trusted intermediary bodies that are set up for this purpose firstly administers the application for the debt relief order, when an applicant forwards the initial application. The main responsibility of these intermediary bodies is to prepare and scrutinise every application (case) in order to ensure that it meets all requirements for the DRO. If the application is complete, the intermediary bodies will then submit this application to the ‘Official Receiver.’ Official receiver holds the power to issue the debt relief order. When the DRO is granted, the official receiver will side step every expensive court cost, which is normally associated with bankruptcy. When the DRO is granted, the applicant can stop making payments against any or all of his debts, which he owes to creditors. The debts of a person are usually written off when the debt relief order comes to an end after 12 months. However, if the financial situation of the debtor changes during this duration, he might be required to start making payments against his debts again.
A debt relief order is for the poorest people of the society;
• Who are not home-owners • Who do not have any assets that worth more than £300 • Who have very low income or solely rely on state benefits • Who are in debts due to a life accident or because of financial crisis • Who want to repay their debts, but cannot do so because of their financial condition Keep in mind that you will have to bear the standard administration charges of a debt relief order, which is £90. The charges for a debt relief order are far less as compared the administration charges of a declaring bankruptcy. Keep in mind that bankruptcy may look like the last option for you to get out of debts. However, bankruptcy is not your last resort because options such as DRO can still help you to get rid of your debts.
Author Bio: Stuart Mclash is an expert financial writer and avid financial blogger having experience in the field of debt relief. He has written posts on Debt Relief Order, IVA, Debt relief orders and on other financial topics as well.