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. Getting a debt relief order is not easy because one must meet some basic requirements in order to get this order.
People who are dealing with debt issues should consider this option before going for bankruptcy because this is one of those options that can easily help you get rid of your debts. Therefore, make sure to check if you fit the requirements of a debt relief order before you decide to go for bankruptcy. 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.
These are some of the basic requirements that you must meet in order to benefit from a debt relief order in the UK. However, it is important that you get debt advice regarding this matter in order to know if there are any other requirements that you have to fulfill.
Important Note
When you get a debt relief order, make sure that you familiarize yourself with its limitations as well. A debt relief order is granted for a period of 12 months after which, all of your debts are written off. During this time, your creditors will not contact or bother you for repayment of their money. However, if your financial situation changes during the 12 months time frame, your debt relief order will be canceled.
Make sure that you know the limitations of a debt relief order before you decide to get one. This will help you avoid any problems that you might face after getting the Debt relief order. You can visit http://www.goodbye2debt.co.uk/Debt-Relief-Orders.aspx for more information on debt relief order.