Debt Relief Order

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Debt Relief Orders are intended to provide debt relief for people in England and Wales who owe £15,000 or less, have little or no income, no assets and cannot afford to make themselves bankrupt. A Debt Relief Order will lead to the debts being discharged after one year.

During the year that a Debt Relief Order is active, the applicant will be protected from their creditors and subject to similar restrictions to bankruptcy. If the applicant's financial circumstances change during the order, then they will expected to make arrangements to repay their creditors. There will be civil and criminal penalties for anyone abusing this system.

It will only be possible to obtain a debt relief order by applying to the official receiver through an approved intermediary. Debt Relief Orders are currently being finalised by the UK Government, so some technical implementation information is not yet known.