A New Way to get Out Of Debt - Debt Relief Orders

Have you recently lost your job?

Do you have debts that you are unable to repay?

Do you owe in total less then £15,000, including bank overdrafts, loans, credit cards etc?

Do you have less than £300 in total assets?

After taking off all your living expenses including rent, food, clothes, bus fares and all other essential expenditure are you left with less than £50 a week?

Can you lay your hands on £90 in cash?

Do you want to get out of debt?

If you can answer yes to these questions, then you will qualify for a new way to get out of debt that has recently been introduced by the government. It is called a Debt Relief Order (DRO for short) and it is similar to going bankrupt but it is a lot cheaper and it only lasts a year. The total cost is £90 and for that you can wipe out all of your unsecured debt (with some exceptions - you can't write off court fines, any money you owe to the CSA and student loans plus a few other special cases). After one year you will be discharged and debt free.

In order to take out a CSO you need to fill out some forms that you can get from an approved intermediary. You can get help and debt advice from the Citizens Advice Bureau who will be able to put you in touch with an appropriate organisation or you can find one on the web and help your debt management skills.. When you fill it in you will need to detail all your debts, your income, and your expenditure. You will also need to pay £90. The form will then be sent to the Official Receiver who will decide whether or not you qualify for a DRO.

What happens next is similar to a bankruptcy and is handled by the official receivers office. Your creditors will no longer be able to hassle you for repayment of your loans. Your discharge will be granted automatically after one year and you will be able to pick up the pieces of your life again.
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In order to take out a CSO you need to fill out some forms that you can get from an approved intermediary. You can get help and debt advice from the Citizens Advice Bureau who will be able to put you in touch with an appropriate organisation or you can find one on the web and help your debt management skills.. When you fill it in you will need to detail all your debts, your income, and your expenditure. You will also need to pay £90. The form will then be sent to the Official Receiver who will decide whether or not you qualify for a DRO.