Friday 3rd of July 2009
Debt relief orders protect borrowers from action by creditors, who will have to get permission through the courts, it has been said.
Britons who owe large amounts of cash could find themselves debt free within a year under a debt relief order, the Insolvency Service stated in its new report, In Debt? Dealing with your creditors.
Another benefit of a debt relief order is that the £90 fee to apply for the order can be paid in instalments and is an affordable amount.
Individuals will also be able to keep their assets and vehicles, so long as assets - not including clothes and furniture - are under the value of £300 and a vehicle is worth less than £1,000.
"You will remain liable to pay certain debts - in particular student loans, fines and some debts arising from family proceedings," the Insolvency Service said.
While debt relief orders cost £90 to apply for, it can cost hundreds of pounds to start bankruptcy proceedings.
