OUR INSOLVENCY AND DEBT SERVICES FOR INDIVIDUALS
DEBT RELIEF ORDER
AN ALTERNATIVE TO BANKRUPTCY FOR THOSE WITH DEBTS UNDER £20,000
A cost effective way to write off debt providing you have total debts of less than £20,000, are not a homeowner and have assets worth no more than £1,000
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WHAT IS A DEBT RELIEF ORDER?
You can apply for a Debt Relief Order (DRO) if you meet the eligibility criteria and cannot pay your debts, because you do not have enough money or assets you can sell or own your home. It means you don't have to pay certain kinds of debt for a specified period (usually 12 months)
A DRO lasts usually 12 months and there are restrictions placed upon you, but creditors cannot recover their money from you without the court's permission
At the end of the DRO period, the debts included in it will be discharged (written off) and you won't have to pay them.
If your circumstances change during the 12 months of your DRO, so that you are able to pay some or all of your debts, your DRO may be revoked you can arrange to pay your creditors.
A DRO lasts usually 12 months and there are restrictions placed upon you, but creditors cannot recover their money from you without the court's permission
At the end of the DRO period, the debts included in it will be discharged (written off) and you won't have to pay them.
If your circumstances change during the 12 months of your DRO, so that you are able to pay some or all of your debts, your DRO may be revoked you can arrange to pay your creditors.
ELIGIBILITY
To be eligible for a DRO, you will need to meet the following criteria;
- Have creditors less than £20,000
- Have less than £50 a month spare income
- Have assets worth less than £1,000, so cannot own your home
- You must have worked or lived in England and Wales within the last 3 years
- You must not have previously applied for a DRO within the last 6 years
- You cannot have any other form of formal insolvency proceedings, including bankruptcy
APPLYING FOR A DEBT RELIEF ORDER
You have to apply for a DRO through an authorised debt adviser whom will help you fill in the application. You then get the DRO from the Official Receiver, an officer of the bankruptcy court.
As part of the application you will need to disclose, in the last two years, you have;
The Official Receiver's fee is £90 (and is non-refundable)
As part of the application you will need to disclose, in the last two years, you have;
- paid some creditors and not others; or
- given any assets away or sold them for less than what they were worth
The Official Receiver's fee is £90 (and is non-refundable)
THE DEBT RELIEF ORDER
The DRO lasts for 12 months usually. During the 12 months you must not make payment to any of your creditors listed in your DRO. These creditors will not be able to chase you for payment but can send you statements. You must also keep your officer informed of any changes in your financial circumstances or assets.
Restrictions will be placed upon you during this 12 months. It is a criminal offence to break the restrictions and could be prosecuted if you do.
The restrictions are;
Restrictions will be placed upon you during this 12 months. It is a criminal offence to break the restrictions and could be prosecuted if you do.
The restrictions are;
- You cannot borrow more than £500 without telling the lender about the DRO
- You cannot apply for an overdraft without telling the lender about the DRO
- You cannot write cheques that are likely to bounce
- You cannot act as a director of a company
- You cannot be involved with the creation, management or promotion of a company during the dRO, without the permission of the court
Restrictions can be extended for 2 to 15 years if you have been dishonest in the application or about your DRO or circumstances.
AT THE END OF THE 12 MONTHS
The debts included in your DRO will be discharged and you won't have to pay them. Except for any debt obtained fraudulently, which will need to be repaid.
Credit Record
A DRO will stay on your record for 6 years from the date it was approved and started.
Government Guide
A government Guide to Obtaining a DRO can be found here >
This also includes a list of authorised debt advisers for DRO's. LM Insolvency & Advisory Limited do not undertake DRO's but can advise you fully on the options for dealing with your debts.
Credit Record
A DRO will stay on your record for 6 years from the date it was approved and started.
Government Guide
A government Guide to Obtaining a DRO can be found here >
This also includes a list of authorised debt advisers for DRO's. LM Insolvency & Advisory Limited do not undertake DRO's but can advise you fully on the options for dealing with your debts.
OTHER SERVICES
ADVICE ON THE OPTIONS
WHEN YOU DO NOT KNOW WHICH WAY TO GO, OR THE OPTIONS AVAILABLE TO YOU
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ADMINISTRATION ORDER
WHEN YOU'VE HAD A COUNTY COURT JUDGEMENT OR HIGH COURT JUDGEMENT AGAINST YOU FOR DEBTS UNDER £5,000
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DEBT MANAGEMENT PLANS
A REPAYMENT PLAN WITH CREDITORS, WHICH IS NOT BINDING AND CAN CHANGE
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INDIVIDUAL VOLUNTARY ARRANGEMENTS
AN ALTERNATIVE TO BANKRUPTCY THAT CAN PROVIDE PROTECTION FROM LEGAL ACTION
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BANKRUPTCY ADVICE AND SERVICES
WHEN YOU ARE UNABLE TO REPAY YOUR DEBTS OR PROPOSE AN ALTERNATIVE REPAYMENT PLAN
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PARTNERSHIPS AND SOLE TRADERS
NOT A LIMITED COMPANY, BUT A TRADE OR UN-INCORPORATED BUSINESS TO CONSIDER
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FIDUCIARY DUTY
SEPARATE ADVICE FOR DIRECTORS ON THEIR PERSONAL DUTIES, AND IMPLICATIONS OF INSOLVENCY FOR A BUSINESS THEY ARE A DIRECTOR OF
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