Debt Relief Order

[ea1610]

Can any one give advise who has been granted a DRO

If their currect bank account that is not in any debt had to be closed?
If there landlord/lady was contacted by the Offical Reciver or any one else invloved?
What checks the OR carries out on your finactional background?
If any exsisting credit card is effective?
Why a creditor would apply to put an extension on the 12 months order?


Thanks any answers or referals to other sites would be really helpful.

Debt Relief Orders (UK) - FAQ

1. What is a debt relief order (DRO)?
   
2. Are DROs just an easy way for people to run up debts then get them written off?
   
3. Can I apply for a DRO?
   
4. Do I need to go to court to get a DRO?
   
5. How do I apply for a DRO?
   
6. How much does it cost to get a DRO?
   
7. How long does the DRO last?
   
8. Will a DRO free me from all my debts?
   
9. Will there be any restrictions on me during the period of my DRO?
   
10. Will my DRO be advertised?
    
11. Will I be able to keep my car?
    
12. What if my car is worth £1,200 and my other assets are worth less than £100, will I be able to apply for a DRO?
    
13. How can I make a complaint?
    
14. How can I become an approved intermediary?
    
15. I think someone who has been granted a DRO did not give the correct information. Can anything be done about this?
    
16. Where can I get further information?

To read the answers please click the link below...

Alternatives to bankruptcy

[forum_admin]

Debt Relief Order (UK)

Chapter 4 of the Tribunals Courts and Enforcement Act 2007 introduced Debt Relief Orders as a new form of bankruptcy in the United Kingdom. A DRO will be a simplified, quicker and cheaper alternative to bankruptcy in the United Kingdom, suitable for debtors who have few or no assets (less than £300 and not homeowners) and little disposable income (less than £50 per month). It will be possible to apply for a DRO without attending court and the fee is to be £90. The fee may be paid by instalments prior to applying for the Debt Relief Order.


Debt Relief Orders Introduction

Debt Relief Orders came into force in England and Wales on 6th April 2009.


Who can qualify for a Debt Relief Order

Debt Relief Orders are intended to provide debt relief for people in England and Wales if:

• The debtor is unable to pay his/her debts;
• The debtor’s total unsecured liabilities must not exceed £15,000;
• The debtor’s total gross assets must not exceed £300 (this includes houses so homeowners will not be eligible); The debtor will usually be allowed to keep a car if it is worth less than £1000 or it has been adapted for them because they have a physical impairment that has a substantial and long-term adverse effect on their ability to carry out normal day-to-day activities.
• The debtor’s disposable income, following deduction of normal household expenses, must not exceed £50 per month.
• The debtor must be domiciled in England or Wales, or in the last 3 years have been resident or carrying on business in England or Wales.
• The debtor must not have previously been subject to a DRO within the last 6 years.
• The debtor must not be involved in another formal insolvency procedure at the time of application for a DRO, such as:
  -- An undischarged bankrupt;
  -- A current Individual Voluntary Arrangement;
  -- A current Bankruptcy Restrictions Order or Undertaking;
  -- A current Debt Relief Restrictions Order or Undertaking;
  -- An interim order
  -- A current pending debtor’s bankruptcy petition in relation to the debtor but the debtor has not been referred to the DRO procedure by the court as a more suitable method of debt relief;
  -- A current pending creditor’s bankruptcy petition against the debtor but the debtor has not obtained the creditor’s permission for entry into the DRO process.

Where can I get more information?

The original consultation document entitled ‘Relief for the Indebted – An Alternative to Bankruptcy’ is available from http://www.insolvency.gov.uk under the section entitled ‘I am interested in insolvency law, policy changes and evaluation and consultation,’ then follow the link to the consultation register.

The minutes of the Intermediaries Working Groups are available from http://www.insolvency.gov.uk under the section entitled ‘I am interested in insolvency law, policy changes and evaluation and consultation.’


You may also find it helpful to read:

‘Guide to Debt Relief Orders’ (UK): Guide to DRO

‘Debt Relief Orders – information for debtors’ (UK): Alternatives to bankruptcy

‘Debt Relief Orders – information for creditors’ (UK): Alternatives to bankruptcy