Debt Relief Order Qualifications

With more and more consumers seeking bankruptcy today due to financial woes, the British government has taken measures to combat this problem. A new form of bankruptcy known as a debt relief order was created. This form was designed to streamline the process for those individuals who did not have large incomes or a great deal of asset. Not just anyone can obtain a debt relief order. Certain requirements must be satisfied for an individual to obtain one.

Qualified individuals must be citizens on the United Kingdom and provide verification of such. The individual must meet certain requirements regarding their assets. The total value of all assets owned must not exceed 300 pounds. One of the assets owned cannot be a home. Separate from that 300 pound ceiling, the individual may maintain ownership of their vehicle provided that its current value does not exceed 1000 pounds.

Income is another condition that must be satisfied in order to get a debt relief order. The individual has to show that their remaining income after paying normal and expected household expenditures is less than 50 pounds. Documentation is required to establish proof for this stipulation.

Inability to repay debt must also be established to qualify for a debt relief order. Another condition pertains to the total amount of debt a qualifying individual can hold. Currently, the limit on debt is 15,000 pounds. Should the individual