(not available in Scotland)

Debt Relief Orders were introduced in 2009. They were intended to fill a gap in the availability of appropriate debt solutions. In particular they are intended to assist people with overwhelming debt who cannot afford the significant fees associated with petitioning for their own bankruptcy.

Anyone who has debts totalling less than £15000, assets of less than £300, and who is not able to pay more than £50 per month in total towards their debts may wish to consider whether a Debt Relief Order makes sense for them.

The process for applying for a Debt Relief Order is to approach an “approved intermediary”. At the time of writing (January 2010) we are receiving feedback from callers and visitors that they are finding it difficult to contact such intermediaries to assist them. We strongly suggest approaching your local Citizens Advice Bureau to discuss whether they can act for you in this way or put you in touch with others locally who are authorised to act for you.

Once a Debt Relief Order has been granted the creditors will no longer be able to take any further action to recover the debts. Generally these debts will be discharged after a year and therefore will no longer exist.

The payment required for a Debt Relief Order is £90 which makes it much more accessible for those facing overwhelming debt and who qualify for this option (in comparison to bankruptcy).

We will provide further information about Debt Relief Orders as we receive further feedback from those who have decided to take this route to resolve their debts.

If you would like to discuss whether a Debt Relief Order would be a good option for you (and the alternatives) please contact us.