what is a debt relief order?

A question about : what is a debt relief order?

have been informed about this and am wondering if anyone has any more information and whether it will be of any help to a few on this board...

Plans to Bring Debt Relief to the Socially Excluded
The Draft Tribunals, Courts and Enforcement Bill published by the Department for Constitutional Affairs (DCA) includes proposals by the Insolvency Service to provide debt relief for people in England and Wales who owe relatively little, have no income and no assets to repay what they owe and cannot afford to make themselves bankrupt.

Debt relief orders are designed to give those who have debts of Ј15,000 or less, assets of less than Ј300 and surplus income of less than Ј50 per month the opportunity to apply for an order that will lead to the debts being discharged after one year.

During that period, people who have a debt relief order will be protected from enforcement action by their creditors and will be subject to similar restrictions to bankruptcy. Those whose financial circumstances improve during the order will be expected to make arrangements to repay their creditors, and there will be civil and criminal penalties for those who abuse the system.

It will only be possible to obtain a debt relief order by applying to the official receiver through an approved intermediary and The Insolvency Service has set up a working group comprising representatives from the advice sector to look at the detail of how this will work.

The Bill will be introduced as soon as parliamentary time allows

Best answers:

• Link: Debt Relief Orders
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• thanks fermi....for some reason that was all i could find what i copied and posted...
  im hoping this might be of some use then to a few on here - me included...what do you think?
  thanks
• i wanted to bump this thread to see if anyone knows whether this is going to be a good thing or what?
  can i have your views on whether this will help or not?
  thanks
• bump bump bump bump bump.. Cos I would like to know more...
• final bump before i let this fall off....does anyone think i should rephrase the title and maybe there will be more viewers? or should i let it die as not important?
  thanks
• It'll certainly help some people.
  Maybe it would be an idea to re-title the thread to make it clear that you are now asking for opinions.
• Maybe a bump every few days?
  It IS important. All debt solutions are important. But as its not even in force yet and its not an option for anyone its not relevant.
  Until the final bill is in place I suppose its guess work as to how it will turn out. But my question is exactly who is it going to help? There is nothing there that BR cannot solve. The affect on credit files will be the same and what will the fees be? Cos I am sure it won't be free. So is it being bought in to free up the ORs and examiners who I am sure are snowed under right now and thats not likely to get better for the foreseeable future?
  I am a bit concerned that a creditor within those 12 months can still chase a debt if a court allows it. Also, it mentions that the debts must be included in the application - does that mean if you forget something then you are stuffed and they can chase during and after the DRO 12 months is up??
  Lots of questions.
• thanks skylight...you are right - it isnt finalised yet and i never thought of the questions of fees, etc.....really i suppose it is better waiting and seeing maybe?
  fermi - when there is more info i will post again and it may be useful to someone - depends how it pans out...
  thanks all
• Isn't it that you can do this yourself online with not having to go to court like BR?, I agree that there are lots of questions about this as how many people will end up doing this at the click of a mouse without really realising the financial implications and not having taken professional advice?
• Hi could anyone tell me that with a debt relief order the surplus amount you would have left has to be under Ј50, is that after you have payed all your debts repayments off every month or after?
• i mean before you have payed towards your debts every month or after?
• Update:
  National charity Citizens Advice today warmly welcomed the promise in the Queen’s Speech to introduce a new low cost, out of court insolvency remedy to help people in debt who are too poor to go bankrupt.
  But the charity added that it was deeply disappointed that proposals to regulate bailiffs had been ditched.
  https://www.citizensadvice.org.uk/ind...s_20061117.htm
• Received today - this gives more detail and confirms the 'rumour' I had heard - that vehicles valued under Ј1000 (on Parkers Guide I believe) will be exempt. Government estimates of take-up are 14000 in the first year, rising to 43000. I believe this is an underestimate and that 60000 would be a better ballpark figure, perhaps even in the first year. And the major creditors are not going to like this!
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• We now know the 'competent authorities' and some training (not enough places!!) is in place for the 'approved intermediaries', heading for a 6th April launch for DROs
  The 'competent authorities' are
  The National Association of Citizens’ Advice Bureaux (CAB)
  The Foundation of Credit Counselling (Consumer Credit Counselling Service)
  Institution of Money Advisers (IMA)
  Money Advice Trust trading as National Debtline
  Totemic Ltd trading as Payplan
  and (wait for it):
  Baines & Ernst Ltd
  I have the utmost respect for five of those six organisations!!
• This one maybe ....
  https://www.oft.gov.uk/advice_and_res...traders/447/1/
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