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Do I Need A Debt Relief Order

Debt relief order is only available to debtors who owe debt that is worth £15,000 or less. It is also granted to people who have low income and they are unable to pay their debts on time. This order is granted by Insolvency Service making it the best option as compared to bankruptcy.

You need a debt relief order when you have debt worth £15,000 or less. This debt should be of a certain type for example; hire purchase, telephone bills, and benefit overpayments. You will need a debt relief order when you add all your income and subtract basic expenditure to end up with £50 or less. To qualify for a debt relief order debtors who cannot pay their debts must have assets and savings that add up to £300 or less. A vehicle in your possession must be valued at £1,000 or less for you to receive this relief order.

A debt relief order is only issued to candidates who have lived in Wales or England for the last three years. Debtors who had property or a business in one of these two regions will qualify for the debt relief order. This order gives a debtor one year to pay all the debt in the list. During this period of one year, creditors will not send debt collectors to your house or summon you to court for unpaid debts.

A debtor who wants to apply for this order will need to consult an adviser who is authorized. This adviser will analyze whether a debtor qualifies for the order and then represent the debtor when applying for the debt relief order. A debtor will have to pay £90 for the order in installments that exceed a period of six months. Debtors who have unpaid loans, rents, credit cards, overdrafts, utilities and council tax among other debts will receive this order. One important factor in debt repayment is to have another clear debt solutions that can help when the debt relief plan is in action. It is very important to know your debt, your assets and the region that offers this form of debt relief plan. A debtor will borrow loans after repaying the debts unlike bankruptcy which takes a longer period of time.

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