what is a debt relief order?

fatbelly

Guys - I'm on the training course!

If there's anyone there from Baines & Ernst shall I give them a message from you?

cartimandua51

http://www.oft.gov.uk/advice_and_res...traders/447/1/
This link demands a password

dottywot

If this is the answer to my problems, please God it is,will my basic bank account be frozen and will i have to receive my benefits in giro form until it is finalised ? as this is part of the reason i have not filed for bankrupcy and of course the £300 + fees. any one knowthe answer to these points- would be gratE ful for any help on this matter. DOTTYWOT

fatbelly

Hi Dottywot

As I see it these are the advantages of a DRO over bankruptcy:

• fee is £90 as opposed to £345 or £495 in bankruptcy, and can be paid in installments (up to six months) at a Payzone outlet or Post Office
• applicants will be allowed to have a vehicle with a value of less than £1000. The valuation will be done using Parkers Guide.
• no visit to court necessary – just a couple of visits to your Approved Intermediary (for example the CAB) who will make your application on-line
• debt advice from your AI, so hopefully you will only submit an application for a DRO if it is genuinely the best option for you
• the Official Receiver will not be seeking to realise assets and make payments to creditors. It is a basic requirement of the DRO process that applicants do not have sufficient assets or surplus income to make any realistic payment towards their debts
• the applicant’s bank account(s) will not be frozen on the making of the DRO, as a bank account in credit will not need to be listed in the application. Though it may be more difficult to open a new bank account after a DRO has been made.

Disadvantages over full bankruptcy are:

• only debts listed in the application will be included, and only at the value that they are listed
• if facts are discovered that mean the applicant breaches any limit (£15k debts, £300 assets, £50 surplus income, £1000 car value) then the order will be revoked
• if your application is turned down or your order revoked, your fee will not be returned
• debtors will only be able to access a DRO once every six years
• householders will be excluded as the value (not the equity) of the house will count toward the asset limit (£300 max).

I'm still learning about these things so I'm happy to be corrected!