debt relief order out in april

[zzxxee]

can anyone explain it in idiot terms to a thickkie like me ? lol

[Buenchico]

People who can't meet their debt obligations are, under certain circumstances, advised to seek bankruptcy. The problem for many such people is that it costs �475 to apply for bankruptcy, which they simply can't afford.

This has led to a campaign for an alternative form of bankruptcy, for those with very limited means, which doesn't involve paying a large fee.

The Government has responded by introducing Debt Relief Orders which are, in many ways, the same as bankruptcy. The principle difference is that (because DROs are only available to those with minimal assets) there's no forfeiture of assets involved.

To obtain a DRO a debtor must apply through a recognised intermediary (such as the CAB). The total unsecured debts must not exceed �15000 and the debtor's gross assets must not exceed �300. Further the debtor's disposable income, after the deduction of reasonable household expenses must not exceed �50 per month.

More here:
http://debtrelieforder.org.uk/commonly-asked-d ebt-relief-order-questions

Chris

[factor-fiction]

Is this another easy way out for people who haven't been sufficiently careful with their money or simply don't want to pay their bills?

[gilf]

factor30 - Seems to be, but I think that people who go bankrupt or apply for a debt relief order will find their future much more difficult than people how have gone bankrupt over the last few years.

[da11ey]

Debt Relief Order is an alternative to bankruptcy - it's only available through 5 or 6 organisations in the uk - Baines and Ernst spell it out on their site:

http://www.bainesandernst.co.uk/debt-services/ debt-relief-order

The only thing is I doubt that very many people will qualify for this option, because you only qualify if you've got less that 300 pounds worth of assets - which I reckon a lot of people will have