Debt Relief Order has a strict criteria

People with relatively low liabilities, little surplus income and few assets and who are unable to pay off their debts in a reasonable time.

What are the requirements for a debt relief order?

The requirements will be detailed in secondary legislation which is not yet in force, but it is anticipated that the following will apply:

The debtor is unable to pay his/her debts;
The debtor’s total unsecured liabilities must not exceed £15,000;
The debtor’s total gross assets must not exceed £300;
The debtor’s disposable income, following deduction of normal household expenses, must not exceed £50 per month.
The debtor must be domiciled in England or Wales, or in the last 3 years have been resident or carrying on business in England or Wales.
The debtor must not have previously been subject to a DRO within the last 6 years.
The debtor has not entered into a transaction with any person at an undervalue during the last two years.
The debtor has not given a preference to any person in the last two years.
The debtor must not be involved in another formal insolvency procedure at the time of application for a DRO, such as:
An undischarged bankrupt;
A current Individual Voluntary Arrangement;
A current Bankruptcy Restrictions Order or Undertaking;
A current Debt Relief Restrictions Order or Undertaking;
An interim order
A current pending debtor’s bankruptcy petition in relation to the debtor but the debtor has not been referred to the DRO procedure by the court as a more suitable method of debt relief;
A current pending creditor’s bankruptcy petition against the debtor but the debtor has not obtained the creditor’s permission for entry into the DRO process.