How Do I Qualify for a Debt Relief Order?
The British government has dealt with various issues regarding consumer debt problems. They realize that many of their citizens are being plagued with problems precipitated by world financial crisis. Therefore the government has created a new type of bankruptcy known as a debt relief order. The British government came up with this new solution as an attempt to make the process much simpler as well as expand qualification for bankruptcy. Previously many individuals could not claim bankruptcy as they did not possess many assets or have a large income. This left out a large portion of the population. Therefore the debt relief order was created and along with fit are certain criteria that must be met in order to qualify for one.
Debt relief orders are only available for citizens of the United Kingdom. The debtor must also possess assets worth no more than 300 pounds. They cannot be a homeowner. Owning a home would disqualify a person. The debtor may own their own vehicle so long as its worth is not over 1000 pounds. The value of this vehicle is not calculated into that 300 pound asset ceiling. Another criterion for qualification pertains to one’s income. The debtor must demonstrate that once they have paid all of their reasonable household expenses their remaining income is below 50 pounds. The debtor must also show that they are unable to pay back their debts. There is also a limit on the qualifying debt for this program. Your total debts may not exceed 15,000 pounds. If you are unable to meet this requirement you’re not eligible for a debt relief order. Also a debtor must show that no other debt relief solution is in place. This would mean that they have not filed a trust deed, individual voluntary arrangement, bankruptcy or other debt solution. Also a person much show that in the past six years they have not sought out a debt relief order. All of these qualifications must be documented and valid to authentic proof must be provided. Despite all of these restrictions there are many citizens that do qualify for this solution and find satisfying relief from their debt woes.
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