Hi There All I Understand There Is A New System Coming Into Effect In April Namely A “Debt Relief Order” Please Casn Anyone Shed Any Light As To When This Comes Into Force, And What Does One Need To Do To Put This Order Into Place. Many Thanks J

Yes i also have heard this news and really finding related to it. Whenever i will get data related to it i will let u know.

Everything is still undecided yet as far as I know, but I think there will be appointed debt counselors who will act as third party for issuing the DROs. As for what you need to do, you will need to fulfill the criteria as seen at http://www.debts.org/debt_help/debt_relief_order and await more specific instructions once it has been formalised by the Govt - which should be next month.

What is a debt relief order

A debt relief order is an order you can apply for if you can’t afford to pay off your debts. It’s granted by the Insolvency Service and is a cheaper option than going bankrupt.

You must have debts of less than £15,000 and a low income.

A debt relief order usually lasts for a year and during that time, none of the people you owe money to (your creditors) will be able to take action aginst you to get their money back. At the end of the year, you’ll be free of all the debts listed in the order.

You can’t apply for a debt relief order if you:

* own things of value or have savings of over £300
* own a vehicle worth more than £1,000
* have a private pension fund worth over £300.

To apply for a DRO, you’ll need to contact an authorised adviser who checks whether you meet the conditions and then applies for the order on your behalf. The order will cost you £90 but you can pay this in instalments over six months.

You may have other options for dealing with your debts besides applying for a debt relief order. For more information about these options, see Help with debt.

On the following pages, we will explain in more detail:

* what a debt relief order is
* who can apply for a debt relief order, including the conditions you need to meet
* who can’t apply for a debt relief order
* what type of debts can be included in a debt relief order and which can’t
* how to apply for a debt relief order
* what happens during a debt relief order, including what to do about your creditors
* things you should do during a debt relief order and things you won’t be able to do
* what happens after a debt relief order finishes, including what happens to your debts.