Debt relief Order DRO

General Information

Debt relief orders DROs will commence on 6 April 2009.

Who might Debt relief order DROs be suitable for?

Individuals with relatively low liabilities, small surplus income and few or no assets and who are possibly not in a position to pay off their debts in a reasonable time.

The proposed criteria will be

• The debtor’s total gross assets must not exceed £300; assets incl car etc
• The debtor’s disposable income, following deduction of normal household expenses, must not exceed £50 per month.
• The debtor is unable to pay his/her debts;
• The debtor’s total unsecured liabilities must not be more than £15,000
• The debtor must be domiciled (live) 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 debt relief order 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.

http://www.debt-management-enquiries.co.uk/how-we-can-help/money-saving-tips/debt-relief-order.html