Debt relief order

A debt relief order can help if you are struggling or unable to pay your debts and live in England and Wales. You must be on a very low income, have no more than £300 worth of assets and debts of less than £15,000.

A debt relief order usually lasts for a year and, during that time, none of the people you owe money to will be able to take action against you to get their money back.  At the end of the year, you will be free of all the debts listed in the order.

You can only apply for a debt relief order if you meet certain conditions:-

  • You have qualifying debts of £15,000 or less (the debts must be of a certain type)
  • You have spare available income of £50 or less a month after paying normal household expenses
  • Your assets and any savings are worth £300 or less
  • Your motor vehicle must be worth £1,000 or less
  • In the last 3 years you must have lived, had a property or carried on a business in England or Wales

You will have to pay a £90 fee to apply for a debt relief order.  The order will be published on the Individual Insolvency Register which is available to the public and your name and address will remain on the register for 15 months.